1. Insurance: a must for every disaster: True insurance is a protection against disasters, but it is not necessary to buy insurance for each and every disaster. If you are capable of paying for the losses you suffered without any financial problems, then you better do that. The risk of not having insurance for certain kinds of insurance needs may be better than paying high premiums.
2. Every body needs a life insurance: Not necessarily. If you do not have any dependents you do not need to save money for anyone’s future. Children and elder people are the ones who do not need life insurance. There may be some exceptions, but generally, they do not have any one depending on them.
3. Life insurance is only for the bread winner: False. It is important to buy a life insurance for your spouse even if she does not work. After all non-working do contribute to your household budget.
4. The best life policies are the ‘whole’ and ‘the ‘universal’: Sad, but true, many people do not consider the ‘term’ life insurance as the best option. With a small period and a low premium payment, term life insurance is better than the other two.
5. Flood Insurance is for those living in High Risk Area: National Flood Insurance Program includes areas that are not vulnerable to floods, all who live there are eligible to buy flood insurance. You may be living under low risk area, but you can still buy it. Ask your agent about it.
6. There is no need of insurance for my son, who delivers newspapers; our auto insurance will cover it: Not, if your vehicle does not offer coverage for business use, you will have to upgrade your auto insurance policy to include coverage for business use of your vehicle.
7. Why do I need a Disability Insurance when I have Social Security: Disability benefits from your Social Security include only long term disability, and that too you will have to wait for a long time.
8. The Government will pay for my nursing care, in case I am old and need one: No good relying on your Medicare Supplement Insurance, they are not going to pay for it; even if they do they will bear only a part of the cost. Better look for long term insurance, these will help you bear your nursing cost, if you happen to need it.
9. Umbrella insurance not for poor people: Lawsuits are not just for the rich and so is umbrella insurance. Every one needs a liability protection.
10. My Health Insurance purchase will not affect others: When you don’t purchase a Health Insurance you are sending a signal that a health insurance is not important at all. Your colleague might follow you and in turn end up loosing his health insurance benefits. When a healthy person does not buy a health insurance, the cost of a health insurance is high, this is because the company gets less people to share the risk.