Insurance Policies You Should Have and Policies You Should Avoid

By on August 26, 2016
Insurance Policies You Should Have and Policies You Should Avoid

When it comes to buying insurance, you’ll be inundated with offerings of coverage for nearly every imaginable event you might face in life. This can make it tough to wade through the different policies. Consider this list of must-have insurance policies and take a look at the coverage you should avoid.

Insurance Plans You Need

Renter’s Insurance

If you’re renting your home, as many Americans are electing to do especially in retirement, don’t assume your landlord’s insurance is enough to keep you safe. Even if your landlord doesn’t require renter’s insurance in their lease provisions, be sure you look at your options. The policy your landlord likely holds will not cover any of your belongings in case of a theft, fire, or other natural disaster, and it’s important to keep your valuables safe. This is especially true if you live in a neighborhood known for high crime rates. Make sure you keep yourself protected with renter’s insurance found here.

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Car Insurance

In virtually every state in the U.S., you’re required to have automobile insurance in order to operate your vehicle. As accidents, vandalism, and theft occur regularly often, it’s essential to have your own policies or become attached to someone else’s car insurance policy. There can be major and costly consequences should you choose to forgo auto insurance, and in the case of an accident, you’ll want an insurance team on your side to pay off the skyrocketing costs of auto repair and potential hospital bills. Check out this article on lowering your car insurance premium in your later years and save tons on your current policy.

Natural Disaster Insurance

There are three main insurance policies that fall under the umbrella of this section, including fire, earthquake, and flood insurance. Surprisingly, these common natural maladies are not included in most homeowner’s or renter’s insurance plans, but adding these extra packages onto a preexisting policy is usually more than worth it. Choosing the right natural disaster insurance means looking at your location and considering what your home and valuables are most vulnerable to. For those that live in chronically dry regions, fire insurance is probably a must. For others that live along fault lines, earthquake insurance will likely be your best bet.

Burial Insurance

Death is inevitable, as “un-fun” as it is to talk about. The cost of funerals has risen exponentially, with the average funeral costing anywhere from $7,000 to $10,000. Burial insurance is surprisingly low-cost and will help your loved ones handle any expected and unexpected costs after your passing. No one wants to leave their family members saddled with hefty bills during times of grief, so if you don’t have a life insurance policy that covers funeral expenses and the other expenditures that occur during this time, check out the rates on funeral insurance here.

The Insurance Plans to Avoid

Credit Card Insurance

While you may have been told credit card insurance is essential, in most cases, it’s not. It’s generally not necessary (or a wise idea) to purchase coverage meant to pay off a credit account, which could be credit for a card, car loan, or mortgage. If you have the right life insurance or disability plan, this will just serve as duplicate coverage that does you no extra favors.

Children’s Life Insurance

It’s an awful aspect to think about, but the loss of a child cannot be eased by life insurance. While life insurance is important for anyone who has a dependent, children do not generally need this type of policy.

Mortgage Life Insurance

Mortgage life insurance refers to a policy sold by your mortgage lender that will pay off your mortgage upon your death. Unfortunately, the promises made when signing on for this policy aren’t always as they seem to be. Your insurance benefit value declines as you pay down your mortgage, even though you continue to pay the same price for insurance. Also keep in mind that the beneficiary in these plans is the bank, not your loved ones.

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Insurance Policies You Should Have and Policies You Should Avoid