The Red Flag: 10 Insurance Policies to Avoid

It seems like everywhere you turn, you keep getting bombarded by providers offering one type of insurance or another. No one denies that they’re important. It keeps you safe and your family’s future secure, but there are a number policies that are a waste of money. These are 10 insurance policies to avoid.

Child Life Insurance
The purpose of insurance is to cover living expenses of those that depend on you. Unless your child is a major contributor to the family funds, you don’t really need life insurance on your child’s life.
Warranty Insurance
This is a policy that covers electronics or damage to products that are not covered by the manufacturer warranty. Most consumers will spend less on getting the product repaired than on the insurance costs to cover the product.
Mortgage Protection
The idea here is that the mortgage will be fully paid off in case of your death. Term life insurance will cover these costs, and if you need more coverage than you just increase the size of time term life insurance policy. Mortgage protection life insurance policy comes at a higher rate.

Credit Card Theft
Federal law already has the consumer credit card liability law that states that a user is only liable for up to $50 of unauthorized charges on a credit card. However, this liability does not include debit cards. If the institution you bank at does not include a limit to the liability you have change your account to another bank.

Identity Theft
These plans do not reimburse you for money that you lose, just for expenses such as legal that you incur after identity theft occurs. This covers phone calls, the copy of documents and lost wages.

Credit Card Balance
This is a policy that pays off your credit debt when you die. This is another policy that is more expensive than term life insurance. It’s best to increase your term life plan to cover this expense.

Trip Insurance
This offers reimbursement for canceled trips or vacations. In truth the premiums for this type of insurance are higher than what it would cost to pay for the cancellation.

Flight Insurance
This is insurance coverage in case of plane crash. Statistics show that very few people are ever killed this way.

Travel Life Insurance
This coverage case if it just happens while you are not trip. The same goes for the other cases where it’s best just to have enough term life insurance to cover your needs.

Wedding Insurance
This is a policy that pays if the wedding was postponed due to an illness of the bride or groom. It also offers coverage if a supplier does not show up, or when something happens to the wedding locale and not place does not have enough insurance to cover the damage.

Bottom Line
Insurance is very important and it’s important that you take care of the future of your family, but all you really need are the conventional plans: whole life, universal life or term insurance.

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