Insurance Mythbusters: Debunking Common Misconceptions About Coverage
When it comes to personal insurance, myths and misconceptions can prevent people from getting the coverage they truly need. At New Vision, we’re here to set the record straight and ensure that Kiwis make informed decisions about protecting their financial future. Let’s debunk some of the most common personal insurance myths.
Myth 1: "I Don’t Need Insurance Because ACC Covers Everything"
While New Zealand’s Accident Compensation Corporation (ACC) provides essential coverage for injuries, it does not cover illnesses or many other unforeseen events. Personal insurance, such as health, trauma, and income protection insurance, fills these gaps by ensuring financial support even when ACC doesn’t apply.
Myth 2: "Life Insurance is Only for the Elderly"
Life insurance is not just for the elderly or those with dependents. Even young professionals and singles benefit from life insurance, as it can help pay off debts, cover funeral expenses, and provide financial stability to loved ones in the event of an unexpected passing.
Myth 3: "I’m Healthy, So I Don’t Need Insurance"
Being in good health today doesn’t guarantee immunity from unexpected illness or accidents in the future. Securing insurance while you are healthy means lower premiums and better coverage, ensuring financial protection when you need it most.
Myth 4: "Insurance is Too Expensive"
Many people overestimate the cost of insurance, assuming it’s out of their budget. In reality, there are affordable policies tailored to individual needs. Working with a financial advisor helps ensure you get the right coverage at a price that fits your budget.
Myth 5: "My Employer’s Insurance is Enough"
Employer-provided insurance can be beneficial, but it often has limitations and may not be portable if you change jobs. Personal insurance ensures continuous and comprehensive coverage tailored to your specific needs.
Myth 6: "I Can Always Get Insurance Later"
While you can apply for insurance at any time, waiting until you are older or facing health issues may result in higher premiums or even declined coverage. Locking in a policy early helps secure lower rates and comprehensive protection.
Get the Facts and Protect Your Future
Understanding the truth about personal insurance empowers you to make the best decisions for your financial security. At New Vision, we’re here to provide expert advice and help you navigate the complexities of insurance with confidence.
Don’t let myths keep you from protecting what matters most—contact us today to discuss the right insurance options for you.
Nimalka Perera
Business Development Manager
New Vision Financial Services
Plan your future and let us help you have peace of mind along the way.
