Life
Insurance policies you do not need
10. Credit Card Insurance
Purchasing coverage to pay your credit card bill in the event you cannot pay it is a waste of money. A far better idea is to avoid running up your credit cards in the first place, so you won’t need to worry about the bills. Not only do you not save on the insurance premiums, you’ll also save the interest on your debt.
11. Credit Card Loss Insurance
Federal law limits your liability if your credit card is stolen. Your out-of-pocket costs are limited to US$50 per card and not a penny more. In fact, many credit card companies don’t even try to collect the US$50.
12. Mortgage Life Insurance
Mortgage life insurance pays off your house in the event of your death. Rather than add another policy, and another bill, to your list of insurance plans, it makes more sense to get a term-life policy instead. A good life insurance policy will provide enough money to pay off the mortgage and to cover other expenses as well. After all, the mortgage isn’t the only bill your survivors will need to pay.
13. Unemployment Insurance
This coverage makes minimum payments on your bills if you are out of work, which sounds like an attractive proposition. A better plan is to save your money and build up an emergency fund instead. You won’t have to cover the cost of the insurance policy and, if you are never out of work, you won’t spend any money at all.
14. Disease Insurance
Policies are available to cover cancer, heart disease and other maladies. Instead of trying to identify every possible disease that you may encounter, get a good medical coverage policy instead. This way, your medical bills will be covered regardless of the problem you face.
