Finding the Truth: 5 Common Insurance Myths Exposed

The insurance industry is full of myths and misconceptions which lead people to make unwise, and potentially costly, decisions in regards to their coverage.  As an insurance company that cares deeply about the clients here in our local Polk County community, Caroll Marshall Insurance wants to make sure that you are prepared to correct some of these myths the next time someone brings them up in a conversation.

Perhaps you are guilty of holding to some of these ideas yourself.  If that’s the case, keep reading! Here are five myths that we hear most often…

Myth #1: I can’t get health insurance because I have a preexisting condition.

While this might have been true in the past, the current health insurance industry is no longer allowed to determine someone’s qualification for coverage based on preexisting conditions, gender, etc.  The Health Care Reform Act ensured that you can receive coverage regardless of your present or past health conditions including diabetes, asthma, or even cancer.  Once you have coverage, you will, of course, be required to pay all deductibles, co-pays, etc., but that will be the same for both preexisting and new conditions.

One exception to this preexisting coverage rule are grandfathered plans through your employer.  If you choose to stay with them, they are not required to cover pre-exisitng conditions.  If you run into this issue, you have the option of switching over to a healthcare marketplace plan which DOES cover preexisting health issues.

Myth #2: My homeowner’s policy is based on the real estate value of my house.

This can be a costly assumption to make about your coverage.  In areas such as ours here in Central Florida, the real estate market has fluctuated quite a bit over the last few years, and during some points, a home might have dropped in value from the time it was built.  Why would this mean your homeowners policy could cost you money?  Well, if your home is destroyed, you want to make sure your coverage will allow you to rebuild your home.  If the house has less real estate value than the cost of rebuilding it, you’ll be left covering the deficit out of pocket.  Your coverage needs to be thought of in regards to rebuilding your house from scratch, not simply covering the value of your home as-is.

Myth #3: If my friend borrows my car and wrecks it, their insurance covers it. 

This is a big lie.  When you’re getting ready to hand over your keys, you need to think of it as handing over your insurance future at the same time.  Your policy covers your specific vehicle, and if it’s in an accident, regardless of the driver, your insurance will be the one to pay for the damages.  It’s best to think twice before letting a friend take over the wheel.

Myth #4: Small Business Insurance has no real benefit (other than protection if needed).

This isn’t as common as some other myths, but small business owners do tend to hold this sentiment.  They know how important business insurance is (and in many places this type of coverage is required by law) but they don’t look beyond face value and see what the policy can do for them, even if they aren’t making a claim.

Small businesses often have to take out loans or approach investors in order to continue with growth.  If you have a business insurance policy for your small business, lenders and investors alike will feel much more confident in your brand, and in you as a business owner.  That confidence can make or break that loan or investment you were proposing.

Myth #5: Life insurance is expensive…and I don’t really need it do I?

We hear this one ALOT.  There are really two parts to this myth.  First, life insurance has a stigma of being something unattainable or unaffordable.  It is neither.  By meeting with an insurance agent you can have a plan personalized to both your needs and your budget.  If you’re local to the Winter Haven area, you know you can count on us at Carroll Marshall to come alongside you and help you figure out what’s best for you and your family.

Perhaps our closeness with our clients is why the second part of this myth bothers us so much…and that part is “I don’t really need life insurance.”  Often, life insurance is only carried on the main “breadwinner” of the household.  Stay at home parents, children, etc. are left uncovered. Unfortunately, if that stay at home parent is suddenly taken by an illness or tragedy, the breadwinner is left covering not only funeral expenses, but facing unplanned-for childcare expenses as well.  This can affect their job, and cause a lot of stress on an already grieving family. In this same way, having a least a basic policy on children in the home is wise as well, since funeral costs can quickly spiral out of control, leaving parents in a financial bind.

We hope this post has helped you re-think some of your stances on certain insurance policies, or perhaps has made you evaluate and appreciate your own policies a bit more.  If you need guidance or a helping hand in making sure your family and business are covered, give us a call or come by our office.  Carroll Marshall has been serving the Winter Haven community for years, and we are proud to offer quality service to our friends and neighbors in our community.