Debunking common insurance misconceptions
There are a number of common myths and misconceptions about insurance – and believing them can sometimes mean people miss out on vital, valuable protection.
Here are a few, and why you (or your loved ones) should think twice next time you hear them.
Myth: I’m too young and healthy to need insurance
Truth: When you’re young and healthy, it’s often a great idea to think about taking out insurance. You may well find your premiums are relatively cheaper – and there might be opportunities to lock in level cover, if that’s appropriate for you. While you’re healthy, you can also usually take out insurance cover without needing to worry about pre-existing conditions being excluded. In short, thinking about insurance as a young and healthy person can help set you up for life-long cover.
Myth: It's too expensive
Truth: The cost of insurance cover can vary a lot, and there are ways that it can be tweaked to fit your budget. If you’re worried about the cost of cover, we can help you look at the options available. It could be a lot more achievable than you expect. And needing to take time off work due to illness, and not having any insurance to help, could be a lot more expensive, in the long run!
Myth: I’m not the main earner, so I don’t need insurance
Truth: Even if you’re not the main financial contributor to your household, it’s highly likely that you’re doing a lot that enables your family to function effectively. If you weren’t around, or weren’t able to do the tasks you currently do, would your main earner still be able to earn as much? Would they have to pay someone else to take on aspects of your role? These can be important questions to think about and talk through with an insurance adviser.
Myth: I don’t have any major assets, so I don’t need cover
Truth: While it’s true that a lot of people start to think about insurance when they take out a home loan, for example, it can be really helpful well before you get to that stage. If you’re earning and aiming for a financial goal, insurance can make sure you stay on track even if life throws something unexpected at you. If you have a household that would struggle without your income, it can also be an invaluable safety net.
Myth: Insurance is just confusing and all a bit too hard
Truth: We’re here to help you make sense of what’s on offer and to determine what is the most appropriate fit for your circumstances. We can explain in plain English what the key considerations are, what might work well for your situation, and what you need to know about the policies you’re considering.
Want to talk?
Set aside the myths and think about taking some concrete steps to a more protected future today. Insurance cover can be a really important aspect of your financial life. Let us help you determine a strategy that works for you.
Disclaimer: Please note that the content provided in this article is intended as an overview and as general information only. While care is taken to ensure accuracy and reliability, the information provided is subject to continuous change and may not reflect current developments or address your situation. Before making any decisions based on the information provided in this article, please use your discretion and seek independent guidance.
