Debunking 10 Common Myths About Insurance

Website: Ameriprise

Material Excerpted From: Ameriprise – Financial Goals

Insurance can be confusing, and many people carry misconceptions about what different policies do (and don’t) cover. Your Hometown agent can help you sort out fact from fiction and make sure your coverage fits your needs. Here are 10 of the most common myths we hear:

• Myth 1: You don’t need life insurance if you’re young, single, and healthy
Fact: Buying early is smart — premiums are lower, approval is easier, and coverage can still help with debts, final expenses, or loved ones who rely on you.

• Myth 2: I’m too old to qualify for life insurance
Fact: While options may be more limited, there are policies designed for older adults that can still provide meaningful protection.

• Myth 3: Life insurance only benefits heirs
 Fact: Certain policies build cash value you can use while you’re alive — for retirement, education, or emergencies.

• Myth 4: Only income earners need life insurance
Fact: The support provided by a stay-at-home spouse or caregiver often equals a full-time job. Insurance helps protect your family if that support is lost.

• Myth 5: Employer coverage is enough
Fact: Group life and disability coverage are usually limited and may not travel with you if you change jobs. Having your own policy ensures protection you can count on.

• Myth 6: Disability insurance is just for accidents
Fact: Illnesses — not injuries — cause most disability claims. Cancer, nervous system conditions, and psychological disorders are among the most common.

• Myth 7: Medicare covers long-term care
Fact: Medicare only covers short-term skilled care. Long-term care insurance helps pay for extended needs that Medicare, Medicaid, or health insurance don’t cover.

• Myth 8: Long-term care insurance is always “use it or lose it”
Fact: Hybrid policies or life insurance with long-term care riders can provide death benefits if care isn’t needed.

• Myth 9: Lower deductibles are always better
Fact: If you have savings, a higher deductible can reduce your premiums and save money over time.

• Myth 10: Umbrella insurance is only for the wealthy
Fact: Lawsuits are common, and umbrella coverage provides affordable extra liability protection beyond home or auto policies.

Insurance isn’t one-size-fits-all, and relying on myths can leave big gaps in protection. Taking time to review your policies with a trusted advisor ensures your coverage actually fits your needs — and gives you and your family peace of mind for the road ahead.

Have a question about insurance?
Call today at 1-800-568-SAVE (7283) or contact us by email at service@hometowninsurance.com for helpful information. We work for you!