There are some types of insurance that you absolutely should have but there are just as many that you are probably better off without. Some of these policies may sound like a good idea when in reality all you are doing is wasting money on the premiums.
Mortgage Life Insurance
This type of insurance is receiving more media coverage lately but is probably a policy you can do without. Mortgage Life Insurance is a policy that promises to pay your mortgage payment in the event you become disabled or die. If you are married this sounds like a pretty good idea, right?
Well, not exactly. This is really only overlapping your existing life insurance policy that you likely already have through your employer or through a separate policy. With a standard life insurance policy the beneficiary receives the benefit that can be used for any reason they choose, including the mortgage. Why pay an additional premium for something that your life insurance policy can pay for?
This type of policy is very narrow in its coverage and therefore is probably not the best use of insurance premiums. You are generally far better to stick with a life insurance policy, or at least increase your coverage slightly to offset the mortgage if that is something you are concerned about.
Travel and Flight Insurance
These policies are another area that may simply require you to pay a premium for insurance that overlaps coverage you already have. First, check your current health and life policies to see how incidents resulting during travel or flight are covered. More than likely there is some sort of coverage included.
You will also want to check with your credit card if you use a card to book tickets or arrangements. Many credit cards automatically come with some basic coverage when they are used to purchase the tickets. If you find that you still need some additional coverage you can at least only purchase what you need that is above and beyond what you already have.
Cancer insurance is becoming very popular recently but is it a good idea? The reason this is generally such a poor insurance choice is that first of all, your primary health insurance generally covers medical expenses related to cancer treatment.
The most shocking reason this can become a waste of money is that most cancer insurance doesn’t even cover skin cancer, the leading type of cancer. Not only that, but cancer insurance typically doesn’t even cover outpatient expenses related to the cancer treatment.
Unless your health insurance specifically does not cover cancer related expenses or you have a high likelihood of getting a specific type of cancer that could be covered by a policy, you are more than likely wasting money on a premium you could be using elsewhere.