Insurance Policies You Most Likely Do Not Need To Have
We do tend to get so many insurance policies because of the fact that we have a natural fear of the future. Since we think that life is unpredictable, we will want to always prepare. Insurance companies actually take advantage of us and end up selling so many policies we do not need. Here are some policies that so many have and that are not actually needed.
Private Mortgage Insurance
In theory, PMI is designed to protect a monthly mortgage payment if the borrower is high-risk. However, there are absolutely no benefits that are obtained from this policy. You can actually avoid it in so many different ways. For instance, if you manage to pay 20 percent up front, private mortgage insurance actually disappears.
Unemployment Insurance
This is a coverage that will make the minimum bill payments in the event that you run out of work. This does sound like something that is great but there is an alternative: save money and build up your very own emergency fund. At the same time, you can actually contact your insurer and work out a different payment plan.
Flight Insurance Policies
Media does portray airline accidents in a highly negative way but the truth is that such accidents are incredibly rare. At the same time, the life insurance policy that you may have should already offer flight coverage.
Collision Insurance
In the event that you have a car loan, there is no real way around the insurance. However, if you do own the car and if you actually have enough money in the bank that you could buy a new car, the collision insurance is unnecessary. This is always true when dealing with most old cars since vehicles do depreciate really fast and end up being worth only a small fraction of the initial purchase price.
Car Rental Damage Insurance
Most of the car insurance policies will cover rentals so you do not have to pay for such a policy twice. Make sure that you check the policy that you have at the moment and then analyze how much you are asked to pay, seeing if this is worth it or not.
Extended Warranty
This is an insurance type that basically increases the amount of time that a product is under warranty. It is really popular when dealing with electronics. The buyer believes that this is in his/her best interest due to the extra protection but that is definitely not the case. When you buy a product that comes from a reputable manufacturer, extended warranty is never necessary.
Children Life Insurance
Not only is this life insurance policy incredibly creepy, you also do not actually need it. Children do not really need to worry about anything and the vast majority will grow healthily and safely. Parents should never buy such an insurance policy. Use the money that you would spend in order to fund a good educational plan, which is much better for the future of the child.
