Most adults have to deal with a multitude of different insurance policies throughout their lives. We have car insurance to renew yearly, life insurance policies to pay premiums on every month for the rest of our lives, health insurance that is a constant worry for many, and every time we turn around, someone is trying to sell us another insurance policy.
There are plenty of insurance policies that will benefit you if you ever need them, but if you add up all the money you pay for insurance every month you will probably come to the conclusion that you should only be paying for the insurance that you really need, and let the rest go. Here are some of the kinds of insurance that should be avoided, so you don’t waste money on useless policies:
Identity Theft Insurance: Identity theft is a very real threat that can cause havoc in your life if it happens, but if you sign up for a free credit tracking service and keep track of what is on your credit report yourself, you won’t need identity theft insurance to do those things for you. You do need to be diligent about keeping track, but most of the online services will send you a monthly report. All you have to do is look through the report for any items that didn’t originate with you, and then you can take the necessary steps to correct it. This is pretty much exactly what the company that is trying to sell you identity theft insurance will do.
Credit card payment insurance: Owners of credit cards are always being offered this type of insurance, and many are tempted to take it. The problem with it is, the premium is tied to your credit card balance, so if you carry a large balance on your card, your premiums will be very high. If you have life insurance, it would probably be enough to cover any credit card debt you might leave, which makes the payment protection plan unnecessary. If you do get this kind of insurance, be sure you understand fully what is being covered and under what circumstance you can make a claim. Some policies only pay the interest on your card for a limited amount of time, making them not much use at all.
While it may sound mercenary, and maybe not quite civilized, insurance is one place where you really should be asking “What’s in it for me?”