Acknowledging the myths of Insurance Agency in NJ – Insurance

Acknowledging the myths of Insurance Agency in NJ - Insurance

Insurance agency in NJ has been experiencing a proliferating growth in the last few years. However with the proliferation, there have been an increasing number of cases leading to misconceptions and myths. It is important to acknowledge the myths of an insurance agency in NJ to successfully avoid any loss in the future. The most common myth is that people believe that insurance should be bought and used for every kind of accident and disaster which is not true. In fact, insurance is designed to protect an individual from catastrophic disasters. Apparently, if you can pay for the loss or damage without a financial hardship then you must pay it. Or else, expect your insurance premium to eventually show an increase. Also, buying every type of insurance just isn’t necessary. Sometimes the risk is worth taking rather than paying a premium. Add to that, some people believe that if they are alive, they need their respective insurance. Life insurance is actually designed to take care of one’s dependants after the caregiver’s death. If you have no dependants, then you probably don’t need life insurance. This includes children and retired persons… usually they don’t have people that depend on their income so life insurance for these groups can, in rare instances, be beneficial but is usually unnecessary. Another most prevalent myth is that people believe that if they are the breadwinners in the home then only they need life insurance which is again so untrue. Have you ever considered the cost of childcare lately? If you happen to add it with housekeeping, food preparation, home accountant, and school transportation. You will get to know that how much a spouse really contributes to the household budget. It is estimated a non-working spouse contributes at least, but usually more, the equivalent of a full time job. For this reason it is important to buy life insurance for everyone in the household if the absence of their income would cause a financial hardship. Most people believe that Whole and Universal life are the best life insurance choices for they can get their money back on it. The fact here is that term life insurance is probably the best choice for most. Term life is set for a specific term, like 10-30 years, with a much lower premium than whole and universal life. Your best bet? Buy term life and invest the premium difference in a retirement account. Additionally, people believe that flood insurance is only for people who live in a high risk area. Imagine how wrong this can go. Everyone who lives in a National Flood Insurance Program area is eligible and can buy flood insurance. These areas are not always prone to floods so even if you think your area is low risk you may be eligible. Another most common myth is that people think that if their son is using the car for delivering the newspapers and pizza. Then, he is not self employed so their auto insurance will cover any accidents. This again here is wrong. If your vehicle is used for anything but personal use, then you will probably need to extend your personal auto policy to cover business use of your vehicle. Don’t think just because you were unaware of your coverage this will get your accident paid for–your insurance policy is a contract that you agreed to adhere to.

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