Insurance is designed to help protect you against occurrences that could destroy your finances. Some insurance policies are insurances against home damage, loss of income as a result of disability or death, or against serious car accidents.
However, how many of these offer real value? Many US citizens waste a lot of money getting the insurance that they don’t need. This article will show you which insurance policies aren’t worth it.
Credit Life Insurance
Credit life insurance is usually offered upon getting a car loan or a mortgage for purchasing a home. It is meant to pay off your loan or part of your loan in case of your death. Sometimes it cannot be separated from the loan, but more often it is optional.
Whether this option is valuable for you is dependent on its price and your situation. Is your employment uncertain, do you work in high-risk jobs, or is your health declining? If not, this type of insurance may not be worth it for you.
Travel insurance is a term that encompasses many different types of situations: canceled and interrupted travel, medical expenses while abroad, etc. It usually costs from 4% – 10% of the price of the entire trip.
Travel insurance can be a waste of money in many situations. However, it can also be valuable in case the traveler has health issues and/or is old.
Another example of important travel insurance is traveling to areas influenced by hurricanes during hurricane season, or countries in which there tends to be a lot of political turmoil.
Children’s Life Insurance
Life insurance is designed to provide for the families of a deceased person whose income the family depended.
There is usually no need to insure children’s lives unless the family depends on the child’s income, or unless the activities the children partake in, such as high-risk sports, could render them ineligible to obtain insurance at an older age.