Insurance as an important safety plan, is often misunderstood by the people, especially in Nigeria. The industry is clouded by myths that can lead to costly decisions and loss of finance.Â
Read along with us as we clarify and debunk five of the most common insurance myths.
5 Common Insurance Myths
The following are the most common insurance myths that people often share both online and offline.
1. Being young and healthy means no need for insurance
The assumption by the people that insurance is majorly for old people is a complete myth. Insurance coverage is for everyone.
Those who are young and healthy often overlook the fundamental purpose of insurance. The purpose is protection against unexpected events.
Also getting insurance early can also mean lower premiums and better financial planning.
2. Basic home and auto policies cover everything
A common misconception in insurance is that basic home and auto insurance policies cover everything you can think of. In reality, these policies have limitations such as natural disasters or theft, highlighting the need for thorough policy reviews and purchasing additional coverage where necessary.
3. Life insurance is just for the elderly and gray hair individuals
Life insurance is often stereotypically associated with the elderly and people with gray hair. But this insurance in reality is essential for anyone with dependents or financial obligations.Â
It can go as far as covering debts, educational expenses, and loss of income, providing peace of mind for families. Just purchase the more extensive premium and enjoy your peace of mind.
4. Insurance companies always deny claims
Most people in Nigeria believe that insurance companies are in the business of denying claims and just only making money without offering services is a myth.Â
While issues can occur, the vast majority of claims are paid out to individuals who have filed their claims correctly.
So understanding your policy and maintaining open communication with your insurer can help ensure a smooth claims process without stress.
5. I don’t need insurance because I have Savings
Relying solely on your savings for unexpected events can be risky and dangerous in the long run. Unforeseen events can come up and eat up all your savings leaving you without money.
Insurance is designed to protect your savings by covering costs that can often far exceed what most people can save, thus protecting your financial stability.
Conclusion
Understanding the truths behind insurance myths is essential for making informed decisions. Dispelling these misconceptions allows you and your families to better protect yourselves against unforeseen events.
It also ensures peace of mind and financial security. Always review your insurance policy to ensure adequate coverage.