4 Myths vs Facts About Insurance Questions – When it comes to insurance, not many people realize the importance of having insurance for protection from life and financial risks. This can be seen from the low number of people who have insurance compared to the population in each country.
In addition to the low penetration rate, people’s knowledge of insurance products is also still lacking. A lot of confusing information is circulating around insurance, which in the end makes us wonder about its veracity.
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4 Myths vs Facts About Insurance Questions
In this article, we will talk about myths vs facts to avoid misunderstandings about insurance. Discuss Your Protection Now!
1. Premium Price
Myth: Insurance Premiums Are Expensive
This assumption makes most people hesitate to buy insurance products because they feel that the premiums that must be paid are too expensive.
Fact: Relative Premium Price depends on needs
In fact, there are no insurance premiums that are too expensive when compared to the benefits offered. Basically, the amount of premium that we have to pay each period has been calculated by the insurance company and adjusted to our needs. In addition, the amount of premium is also influenced by several factors such as:
- The object of insurance. Do we insure the dead or the soul?
- If the object of the goods is dead, then transportation for carrying goods, the condition of the goods, as well as the market price of the goods will be taken into consideration.
- If the object is the soul, then the amount is influenced by the medical history, type of work, age, and gender of the insured customer
- The type of policy taken along with the coverage period.
Therefore, the amount of insurance premiums that must be paid can be said to be relatively dependent on these factors. So, we can’t generalize.
2. Insurance Ownership
Myth: Insurance Is Only for The Elderly
There is a thought that insurance is only for those who are elderly and have a great health risk.
Fact: Young People can also Have Insurance
Insurance is not only for those who are elderly. In fact, insurance is actually better to have when we are young because the premiums we pay will be cheaper than when we are middle-aged. When we are young and healthy, the risk of health problems occurring in the near future is much smaller. Therefore, having insurance when we are young will be much more profitable for us in the future.
Read : Know the 8 Risks of Undisclosed Child Education Insurance
3. Insurance Claims
Myth: Insurance Claims Are Hard
Many doubt the benefits of insurance because they think the claim process will be complicated or rejected by the company
Fact: Claim Granted In Accordance With The Provisions
Before making a claim, we need to first understand the provisions stated in the policy. When we make a claim, usually the insurance company has several bases that are used to determine whether it will be accepted or rejected. One of the influential ones is the presence or absence of pre-existing conditions. Pre-existing condition can literally be translated as “pre-existing condition”. In insurance, this condition indicates the presence of a medical illness or injury that has been experienced before signing the policy.
Well, some insurance companies cannot grant our claims if we have a pre-existing condition. So, make sure we really read and understand the policy before signing.
In addition, the insurance claim process is now also easier, which can be done online. The online claim process can be done in three simple ways, namely filling in customer identification data, selecting claim information, and uploading additional information needed.
4. Purpose of Insurance
Myth: Insurance Equals Savings
Insurance and savings are one thing in common. Therefore, there is no need for insurance if we already have savings.
Fact: Insurance and Savings are different things
It is not true that insurance is equal to savings. These two financial products are very different even though they are both aimed at preparing for future well-being.
Read : 3 Ways to Choose a Good Insurance at Every Stage of Your Life
Some of the differences between insurance and savings include:
- Insurance aims to provide protection against life risks such as death or health cost problems that may not be covered by savings; savings aimed at providing security from unexpected expenses and emergency funds,
- Insurance is paid with a regular premium specified at the beginning of the insurance policy agreement; savings have a flexible deposit depending on how much we set aside and there is no commitment in achieving these goals,
- Savings funds can be taken at any time, while in certain types of insurance, the cash value can be disbursed after a certain time according to the provisions of the insurance policy
Those are some myths about insurance that circulate in society but of course they are not true. Feel free to dig up more information before we decide to buy an insurance product. Because after all, the right insurance is the one that suits our needs and is able to protect ourselves from the risks of living in the future.
Well, now you’ve read about 4 Myths vs Facts About Insurance Questions . Did you learn anything from the above review? Give some responses in the comments column below
