Myth # 1: Hey, you pay a premium … Insurance must be purchased and used for each accident and disaster.

Insurance is designed to protect a major disaster. Securing a basic rule: if you can pay for any loss or damage, without financial problems then pay, otherwise expect your insurance premium at the end show an increase. Even buying any kind of insurance is simply not necessary. Sometimes the risk is worth it, instead of paying premiums. More not buy insurance you do not need

Myth # 2: If I’m alive, I need life insurance?

Life insurance is designed to take care of his dependents after the death of his caregiver. If you have no dependents, you probably do not need life insurance. This includes children and seniors … In general, they do not have people who depend on their income for life insurance these groups may, in rare cases, can be beneficial, but not as a rule.

Myth # 3: I am living at home, so I need life insurance.

Have you seen the cost of childcare lately? Add to that the long household, food preparation, and bring home and school transport. From this list we can see how a partner really helps the household budget. Estimated non-working spouse contributes the least, but in general, equivalent full-time. For this reason, it is important to purchase life insurance for everyone in the household, if the absence of their income caused financial problems.

Myth # 4: Whole life and universal life insurance are the best choice because you can get your money back.

Term life insurance is probably the best choice for most. Term life has been concluded for a fixed period, such as 10 to 30 years, with much less than full and universal life insurance premium. Your best bet? Buy term life and invest the difference premium account. Greater emphasis on the term, universal and whole life insurance based on life insurance.

Myth # 5: Flood insurance is only for people who live in an area with a high degree of risk.

Anyone who lives within the National Flood Insurance Program is suitable for the purchase of flood insurance. These areas are still flooded so that even if you think your area is a small risk that you may be eligible. Check with your insurance agent to learn more or find additional information on why my policy pay for damage caused by the floods will not cause?