12 Insurance Policies You Don't Need
People secure themselves and their properties against the unforeseen disaster in the future through insurance. If insurance is done with a crisis in mind, then the person seems to be in a hurry and there is a likelihood of him to over purchase or buy unnecessary insurance policies. Here is an indicative list of insurance policies that you do not need.
1. Private Mortgage Insurance
PMI or the Private Mortgage Insurance is unpopular among homebuyers as these increases the mortgage payments per month to a considerable extent. Though the insurance cost a considerable amount to the home owners, it is of little value to them. They derive absolutely no benefit from such payments. However, this insurance payment can be avoided, fortunately. If any homeowner is unable to pay a down payment of at least 20%, then this insurance is levied on him. To avoid the insurance the person should pay at least 20% of the homes total value as the down payment and this is his contribution to the asset.
2. Extended Warranties
Many electronics and home appliances products come with the option of extended warranties at an additional cost. For low cost DVD player or a radio you need not go for such extended warranties.
3. Car rental Damage Insurance
Check out if your auto insurance policy already includes rentals. For it is likely that it already does. So before you pay for rental damage, check your policy.
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4. Flight insurance
Airline crashes have reduced to a considerable amount due to superior technology. So if you have, anyways, adequate life insurance cover you need not waste additional amounts in insuring yourself every time you board a flight. Your life insurance will already be covering in case of contingency.
5. Child insurance
The breadwinner should get the maximum cover to protect his dependents. If at all one wants to invest for a child should invest in fixed income instruments for the education of the child and not to cover him in case of exigency.
6. Credit card insurance
Buying coverage to payback your credit card bills in case you default is a bad use of money. Instead control your credit card usage and save on interest cost.
7. Automobile Collision
Collision insurance covers the cost of repair of the vehicle in case of any accident. If you have sufficient fund to get a new car then collision insurance is a waste of fund.
8. Rental Car insurance
Auto policies come with an additional option of rental car insurance. But since at rare occasion will rent a car so the accident coverage during that period is not actually required.
9. Waterline coverage
You may be approached by the water companies to take insurance policies to that will cover the repair cost of the water line from the street to your house.
10. Mortgage life insurance
This insurance is to cover your house loan expenses in case of exigency. However, it is better to get a term insurance to cover rather than adding a new policy and a new bill.
11. Disease insurance
It is better to have a medical insurance for your whole family rather than taking disease insurance for critical diseases.
12. Accidental Death Insurance
Accidents can occur to anybody anywhere so you have to be careful while at work, driving and on road. Accident death cover does not add any value if you already have adequate life cover.
As the statutory warning suggests, you must read the offer document and the terms and conditions thoroughly before signing on the dotted lines.
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Posted in Financial Services Post Date 10/19/2015