Do you know enough about your insurance policies to know what is fact and what is fiction? There are a number of myths out there about home insurance and life insurance policies, particularly, that we can clear up.
Myth 1 – Car insurance is too expensive
While paying back a car can be a big financial strain, it is not wise to be on the road without car insurance. There has been a dramatic increase in road accidents, and because of this, there is now a wide range of products out there that will suit all budgets. Old car that’s paid off? No problem, get Third Party Only insurance for a minimal monthly outlay. There is also the Budget Lite cover option. Before writing it off, do your research thoroughly and ask yourself whether you can afford NOT to have car insurance…
Myth 2 – My landlord’s insurance covers me too
Even if you are renting an apartment, it’s important you have your belongings covered by home contents insurance. Many tenants are under the impression that their landlord’s insurance covers their belongings, but this is not the case. Tenants need to have their own home contents insurance that covers furniture, clothes, jewellery and tech, against crime or disaster. Calculate how much your belongings are worth and get them covered.
Myth 3 – I can’t get life insurance with pre-existing conditions
Even if you do have a pre-existing medical condition, like heart disease or high blood pressure, you can still get yourself insured. Your insurance company will perform health checks before agreeing to cover you and you need to disclose your medical history upfront. This will determine the amount of premium you will pay. Remember it’s important to be honest upfront. If it is discovered you did not disclose everything, the insurance company can refuse your claim.
Myth 4 – Buildings insurance will cover everything on my property
Take time to read over a buildings insurance policy before you decide, because they are not all created equal. There are many different types that cover different things. There are three main aspects of coverage: fire, property and contents. When comparing home insurance policies, check which aspects are covered. Is it fire insurance and property cover, or just fire cover? Is your swimming pool covered, or is that extra? What about damage due to a break-in or theft? These elements will dictate whether the policy is right for you.
Myth 5 – I’m too young to think about life insurance
You’re fit, healthy and full of plans for the future. Life insurance might not factor into those plans, but it should. Buying a life insurance policy when you’re young makes good financial sense. The younger and healthier you are the better, as your monthly premium will be calculated based on your health, lifestyle, age, gender and occupation. It’s a case of spending money to save money. So get locked in early before your family and financial responsibilities grow.
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