Insurance Misconceptions: What They Are And Why They’re Wrong

Despite the obvious financial implications of life’s most unwanted surprises, it remains a fact that many people do not have sufficient insurance coverage to protect themselves. It’s easy to understand why. Busy, working individuals have so much on their plates that subjects like insurance can often get pushed onto the backburners. However, this is a mistake, and the preconceptions about the complexity and expense of acquiring adequate insurance are frequently misplaced.

At TAL, insurance is our passion, and the goal is to provide fast, effective, and affordable policies that do not require a law degree to interpret. This article examines why we should all take time to understand the financial implications of failing to seek protection and how the effort required is often misconstrued.

Insurance Misconceptions

Second only to apathy and procrastination, misconceptions about insurance are a leading cause of non-existent or inadequate coverage for many individuals. Some of those misguided ideas include:

I have life insurance through work

This typical response to life insurance is not always as accurate as it might seem. Often, employer-provided policies are little more than ‘bare-bones’ versions. They usually lack provisions for elements such as mortgage payments and peripheral family support in the unfortunate event of the death of a primary income provider.

I’ve never had a day off work; I don’t need critical illness insurance

While this admirable attitude and a positive approach to health and fitness certainly helps, none of us knows what the future holds. Even the healthiest among us can be struck down by severe illness or involved in an accident. Critical illness or total permanent disability (TPD) insurance is designed to provide maximum protection in a worst-case scenario.

I can’t afford the premiums

Although this may genuinely be true for many struggling families, the truth is that TAL insurance policies are extremely reasonably priced and affordable.

All insurance companies are the same

Much like politicians, the prevailing view of many people is that insurance companies are in it together, and there are few differences between them. This is patently false. Many insurance providers take their role as support providers very seriously and see their clients as valued partners, not just cash cows to be milked regularly.

The insurance company will find some reason to deny my claim anyway

There is no denying that some providers go to extreme lengths to justify denying any claim, but this is not universal. Herein lies the importance of researching your potential providers and making astute choices. The plethora of online resources and information includes:

• Existing and former customer reviews and testimonials
• Governmental sites to check a provider’s status
• Powerful search engines
• Comparison websites

The Bottom Line

The truth is that, although insurance represents an expense and effort most of us would prefer not to subject ourselves to, the implications of this are significant. The financial burden of paying regular life insurance premiums pales into insignificance when compared with the cost of extended periods of unemployment, critical illnesses, death, and more. What better way to get peace of mind than knowing you have provided for yourself and your loved ones if disaster strikes?