Debunking Health Insurance Myths

Given its technical nature, insurance can be difficult to grasp. Before getting an insurance plan for yourself, you need to carefully examine the terms in the fine print. Otherwise, you get inadequate coverage or deal with claims process issues. 

Even in this digital age, there are a lot of myths and misconceptions surrounding health insurance. That’s why Local Retirement Group will help you debunk those false impressions. If you want to educate yourself about insurance concepts, here is a list of the common misconceptions and the real facts behind them.

Myth 1: All insurance companies offer the same plans and coverage.

Truth: Not all insurance providers offer the same products. That’s the reason why you will receive different quotes from different insurance agents. While insurance companies offer similar options like health insurance or auto insurance, the specific coverage can vary from one company to another. 

No two insurance companies are the same when it comes to coverage limits, deductibles, and premiums. It’s best to do your research and review the coverage details with your agent. This way, you can determine which plan will best meet your needs.

Myth 2: Only healthy individuals can get coverage.

Truth: Your health status has a significant impact on your insurance policy. Having a family history of stroke or cancer increases your risk of developing health problems. If you have a pre-existing condition, it’s still possible to get insured. This means that insurance coverage is not limited to healthy individuals only. 

Under the Affordable Care Act, insurance companies are legally prohibited from refusing coverage to those with pre-existing conditions. They can’t charge higher rates or limit benefits either. Once your coverage starts, they aren’t allowed to deny claims.

Myth 3: The cheaper the insurance policy, the better.

Truth: Low-premium plans aren’t always the better options. Keep in mind that the cost of insurance is just one factor to consider. While a lower premium may seem attractive, you may end up paying more in deductibles or copayments. Due to higher deductibles, the insurance plan will be more expensive in the long run.

On the other hand, insurance plans with higher premiums will provide better coverage and perks. When considering insurance options, it's important to carefully assess the overall value for money. 

Myth 4: Young people don’t need insurance.

Truth: It’s a common misconception that insurance is for old people only. No one is immune to health conditions, regardless of age. Getting insured while you’re young and healthy is the wise thing to do. When you start as early as possible, you can qualify for lower and more affordable premiums. 

Many companies offer investment-linked policies, which allow you to build cash value over time. The earlier you start your insurance plan, the more funds you can accumulate for future use. A portion of your cash value can be withdrawn and used by the policyholder.

Myth 5: Insurance covers the cost of everything.

Truth: No, insurance will not cover everything that’s not included in the terms. Insurance plans have different types of coverage, co-pays, and deductibles. While it’s true that it usually pays most of the bill, you still have to pay out-of-pocket expenses.

For example, most health insurance covers treatments and medications. However, cosmetic procedures and beauty treatments. Another example is homeowners insurance. Damages due to fire or theft are covered, but common policy exclusions are flooding and pest infestations. To be aware of any limitations or exclusions to the coverage, always read the fine print.

Myth 6: It’s better to invest my money elsewhere.

Truth: Both investment and insurance serve different purposes. Investing your money in stocks or bonds will allow you to grow your money. However, major investments carry financial risks. Returns aren’t guaranteed because stock prices fluctuate from day to day. It’s recommended to conduct proper research and diversify your investment portfolio.

On the other hand, life or health insurance guarantees protection against financial loss. It provides a financial safety net against accidents and illnesses. Insurance plans focus on risk management instead of wealth accumulation.

Turn To Your Insurance Partners

After knowing the most common misconceptions and facts, you’re ready to finally navigate the insurance process. Local Retirement Group is the trusted name when it comes to insurance plans. Our main goal is to get the one best suited to your specific needs. Contact us today if you’re interested in a free consultation.