Insurance is an important part of life. It keeps us secure and ready for any untoward incident that may happen to us, our assets, and our families. But while there are insurance policies that we cannot go without, like health insurance, and auto insurance in Taylorsville and other locations, there are other policies that could be unnecessary. If you get offered one of these policies, it’s alright to say no:
1. Rental car insurance
Rental car insurance is almost always offered by the agent when you’re renting a car, and this add-on can cost you somewhere between $20 to $40. However, getting insurance for your rental car is completely unnecessary if you already have coverage from your auto or credit card insurance.
2. Mortgage life insurance
Mortgage life insurance will serve to pay off your mortgage if you die before repaying it completely. Since your regular life insurance will most likely cover the costs, you don’t need separate life insurance for your mortgage.
3. Cancer insurance
Understandably, many people are worried about getting cancer, especially if they have a genetic predisposition for the disease. However, getting a cancer insurance policy can render some parts of your regular health insurance void. What’s more, most cancer insurance policies contain loopholes that may prevent payouts. So, instead of getting insurance for cancer, make sure you get a health insurance policy that will cover most, if not all, diseases.
4. Unemployment insurance
Unemployment insurance covers the minimal payments on your household bills if you are ever out of work. This type of policy is wholly unnecessary and a waste of money. Instead of getting unemployment insurance, build an emergency fund that is equivalent to at least three months worth of your income.
5. Flight insurance
Don’t let your fear of flying talk you into getting flight insurance. In the event of a plane tragedy, which is very rare, your regular life insurance should cover you.
6. Identity theft insurance
Identity theft insurance doesn’t cover you for monetary losses. Instead, it acts like a watchdog that protects your accounts from identity theft. It’s useful, but not that necessary. You can monitor your own accounts by using apps and reading your credit report regularly.
7. Credit card insurance
In case you cannot pay your credit card bills, credit card insurance will make minimum payments on your behalf until you can pay the bills back. Not only is this policy a waste of money, but failure to pay can be easily avoided. First of all, don’t run up your credit cards to the point that you cannot pay it back. Secondly, disability or life insurance can pay off credit card debt in case of an illness or accident.
It pays to be prepared with insurance. But not all policies carry the same bearing as the essential ones. If a company or an agent offers you one of these policies, feel free to decline since you probably won’t need them. Some of your regular insurance plans can cover you for most, if not all, of the untoward incidents.