4 Insurance Myths That Are Not to Be Trusted When Planning Your Finances

Having your personal finances in order when a crisis strikes is a true blessing; it can save you from a lot of trouble. When it comes to sorting your finances for future planning, the most important decision one has to take is where to put their money. Savings, investments, insurance; there are too many options, each with their own set of pros and cons. Choosing insurance is definitely an option that, when chosen carefully, can be quite beneficial.

Whether it is life insurance or health insurance, both have their own advantages when it comes to providing financial security. However, there are certain myths surrounding insurance that makes people reluctant about investing in insurance, preferring to invest their money in other options. So, here are four insurance myths that are absolutely not true and therefore, should be disregarded:

1. Single People Don’t Need Coverage

A very common perception is that insurance is only required when you have financial dependents who can make use of your insurance payout in case after your death. This however is not the case. Most of the time, insurance covers all your medical bills and debts, and also pays for your funeral expenses. Having an insurance means that there won’t be any unpaid bills after you that your family will have to cover. You can also leave your insurance to a charity or a cause that you have supported through your life.

2. Insurance Is Only For Breadwinners

Another perception is that only those who earn need insurance. It is important to understand that insurance can provide you cover against a lot of things in case of crisis, especially for your medical bills. And it is not only breadwinners that can have a health issue. If every member of your family is insured, it invariably takes financial pressure off you by providing you security against unforeseen circumstances.

3. Health Issues Make You Ineligible for Insurance

Many people think that if they have a health issue or because they are of older age, they are ineligible for insurance. Your eligibility largely depends on the nature of your health problem and the company’s criteria. You may find that there are policies specifically made for people with health issues that cover your medical bills such as the over 50 life cover policy. Depending on your health issue, you can always get some form of policy to suit your requirements.

4. Life Insurance is a MUST Have

While it is true that insurance is extremely beneficial, it is not something you need at all costs, come hell or high water! For people who already have assets that will be enough to cover their medical and funeral bills with something to spare, and they have no debts or dependents relying on them for financial assistance, insurance coverage is an option they might not need. However, keep in mind that things are always unpredictable, so it is better to be safe than sorry!

With these four popular myths busted about insurance, you can easily trust it to be beneficial for you during times of need. For better management of your personal finances and planning your retirement in a secure way, insurance is definitely an option to be considered. If you want to have a peaceful and financially independent retirement, plan your finances carefully. Remember, there is no better day to start than today!

The author is a financial consultant who specializes in the area of personal finances and retirement planning. If you are looking for a life insurance with medical cover, the over 50 life cover can be an ideal option for you.