Insurance policies provide monetary support in a difficult situation that can weaken your finances. You need to pay a small amount as a premium to rest assure of any emergency the policy covers. However, it is not possible to keep up with the premium of many insurance policies at the same time because of a limited income.
Many people cut some insurance policies from their list to save some money. They make the serious mistake of discontinuing the important ones only to land in more financial trouble. With the long list of available insurances, it is never easy to differentiate between essentials and needless services.
Here, you will find seven insurance policies that are often needless for various reasons to save money on their premium.
1. Mortgage Life Insurance
Mortgage life insurance policies assure the holders of repayment of their mortgage in the event of their death. This sounds like a good deal to avoid stress if the unfortunate situation ever arrives. However, it is not as helpful as advertised by insurance companies.
You may already have life insurance to provide financial support to the family members in your absence. Upgrade its policy if you want more money to provide a financially stable future while repaying the remaining mortgage amount. Also, the benefits with mortgage life insurance reduce with every paid installation from the owner.
2. Travel and Flight Insurance
Travel insurance policies provide coverage to lose or damage that some other policy may already have covered. It makes no sense to pay for the overlapping benefits with another policy. Take the example of accidents and injuries. They are covered with your medical and life insurance.
Some credit card service providers also protect from damage incurred because of lost baggage or accident during travel. Moreover, some even provide car rental insurance based on the signed agreement with them. Ask the service provider for the included coverage with the booking of tickets from the credit card.
3. Cancer Insurance
Awareness about cancer disease has caused people to prepare themselves for expensive treatment. Insurance policies have used it to sell their cancer insurance policies to cover the cost of different stages of treatment. However, many policies don’t even cover one of the most common types of cancer, skin cancer.
Moreover, you don’t need a separate insurance policy for a specific disease if the current health plan covers it. You should contact the medical insurance provider to get the list of diseases and provided a lifetime coverage limit. Instead, upgrade your plan with a small increase in the premium to increase the coverage.
4. Identity Theft Insurance
Identity theft is a serious and rapidly growing crime with many consequences to the victim. You can lose a substantial amount of money or may face lawsuits without any fault of yours. Still, identity theft insurance is not worth the investment.
You should check the credit reports, bank statements, and credit card bills regularly. Contact the local authority if you notice some suspicious activities in these reports and statements.
5. Children’s Life Insurance
Life insurance is to provide support for the family to manage the finances of a deceased person. You can buy an insurance policy for anyone in the family, even a young kid in a kindergarten. However, their chances of outliving you are incredibly high that make needless insurance spending.
You can use the premium money for a variety of other expenses that are more useful. You can upgrade your insurance policy to ensure a better financial future for the family. Or, it is never too early to start saving money for the college funds.
6. Unemployment Insurance
An emergency fund is way more helpful than an unemployed insurance policy for you. You may have a stable job in an industry that appreciate your talent. You can always take loans for the unemployed with no fees to manage finances during a short-term unemployment phase.
7. Extended Warranties
Warranties are similar to insurance policies as they cover of repair or replacement of a damaged electronic item. Nevertheless, you don’t have to buy extended warranties for every item in your household. The fees for service extension can put needless stress on your budget.
Many electronic items are low cost, which makes extended warranties not worth the trouble. At the same time, some other devices are upgraded every other year, such as smartphones.
To sum up, you don’t have to buy every product from the insurance provider to live a peaceful life. Many of them are useless, while others overlap with some other essential policies. Therefore, it is essential to research the damage coverage and chances of the accident thoroughly before buying an insurance policy.