Insurance is a part of life, and so many of them are just must haves. Car insurance for instance, is mandatory by government laws and homeowners insurance you can’t do without if you have a mortgage on your home. Insurance policies are there to protect you and your dear and near ones should any catastrophe happen in your life. Insurance can give you that peace of mind and sense of security needed to lead a happy family life.
Think of any tough situation and there is an insurance policy to cover it. The vast range of insurance policies covers almost anything on earth, even the most unusual events. This continuous need to safeguard yourself and the fear of a misfortune drives you towards buying a policy. This process boosts the insurance business and the companies may lure you into buying a worthless policy. These unnecessary policies provide less or no actual safety and create a false sense of security. All they do is to create a hole in your pocket and increase your budget in this current economical condition.
So, don’t let an unnecessary insurance feed on your hard earned money. Buy only those which will actually protect you and forget about the ones that are there just for the sake of the insurer’s profit.
Here, is a list of some unnecessary insurance policies you shouldn’t buy:
1. Credit Card Insurance:
Purchasing a credit card insurance to cover the credit card bills on the occasion you can’t pay it, is just a wastage of money. It’ll make only minimum payments on your bills, while the interests build on. Thus, you end up having a huge debt even after paying premiums for this useless insurance.
2. Flight Insurance:
This policy is one of those which make you pay twice on the coverage you may already have. Besides the fact that airline accidents aren’t very common, your life insurance policy should be already providing you the coverage for this particular need.
3. Mortgage Life Insurance:
You can be better off without this policy as well. This insurance pays for your mortgage in the event of your death. But if you are a family man, and have life insurance, isn’t it already covered? It’s a good idea to save the premium amount for this policy and rather invest in a good term or whole life insurance. The money from the life insurance would be enough to pay off the mortgage as well as look after other bills.
4. Cancer Insurance:
Because of the growing fear of this particular disease, people are bending towards taking such insurance. But it’s not what it sounds like. The primary reason for its uselessness is the fact that it doesn’t pay for skin cancer, which is becoming more common these days. Cancer insurance doesn’t even pay for outpatient expenses. It’s a far better idea to choose a good health insurance policy which also covers this disease.
5. Automobile Medical Insurance:
The medical expenses that are incurred by accidents are covered by your health insurance. So, you really don’t need to pay extra bills to cover the same thing again.
6. Vacation Rain Insurance:
The companies are going to do a thorough study on the weather forecasts and would insure you only if they are quite certain, it’s not going to rain. This leaves you with no actual coverage, so don’t waste your money on it.
7. Unemployment Insurance:
It makes some sense to buy it if you are a self-employed person. But for a salaried person it’s nothing but useless. It’s a private insurance which pays a small amount of your income if you lose your job. This is already covered by the government run unemployment benefits program, which pays a portion of your lost income.
8. Rental Car Insurance:
You don’t need to purchase this as this is provided as an additional coverage by most auto insurance companies. Rental cars are usually cheap, so why have a separate insurance for it? If you really need one, just add it on your existing auto insurance.
9. Water Line Coverage:
This insurance pays for the repair of water line that runs through the streets to your house. It’s very unlikely that you would ever need this coverage, especially if you live in a new house. Even if an unlikely problem does appear, repair costs are relatively low. So, better save that money somewhere else.
10. Accidental-Death Insurance:
This is another insurance that provides superfluous security. Deaths due to car accidents or fire in the house are covered by the respective insurances, so you don’t need to spend money for this policy. Additionally, you may use that money to buy a good amount of life insurance coverage suitable for you, and this issue is well covered.
Things to Remember:
• Before purchasing any insurance policy, stop and think whether or not you really need it.
• Apart from the major necessary insurance policies, think about what you are really going to pay for and what you are going to get in return.
• Instead of buying unnecessary insurance and paying several bills, invest in good savings plans. You may even keep a separate account where you can build up a cash reserve, which can be used as an emergency fund.
• Remember the cause for getting insurance in the first place; protecting yourselves from financial difficulties. So don’t spend money in vain to pay unnecessary premiums. Be insurance smart.Blog Category