MSN has a great article about insurance myths. Here are their 3 top insurance myths:
- Your benefits should be equal to your premium payments
- Insurance should cover events that are likely to happen
- Insurance is a rip-off, so you should only have the minimum amount of insurance.
These myths are very prevalent. Of these three, I get the 3rd one very often. People will call me and tell me what a rip off it is, or they email me and complain about it. Insurance is designed to cover you when something happens. You need insurance for when that disaster occurs. Insurance companies make a LOT of money, and their practices, especially with claims, need to change. But, insurance is not a rip off.