People opt for various types of insurance policies for eradicating insecurity and safeguarding property and life. Disasters and mishaps do not come with notice and an insurance policy helps you safeguard home, property and belongings from calamities and accidents. Both singles and married people opt for insurance. While insuring your car, home and health is necessary, you must invest wisely. Not all insurance policies out there can be mandatory for your future security. There are some insurance policies which you may not need much.
Private Mortgage Insurance
In this type of insurance, the borrower churns out money but gets no real benefit. It is meant for safeguarding interest of the lender. These policies are given to higher-risk borrowers in general. You can avoid this policy by making a down payment that is above 20 percent of the total value of the property.
Collision insurance is meant for getting money when your car is involved in a collision on road. This may be necessary for people who cannot help taking loan to buy new car. However, those with enough capacity to buy a new car will find this coverage superfluous. People driving older cars can also do without this insurance.
Rental Car Insurance
If you do not have a car rental business exclusively, this coverage will be useless to you. Your regular car insurance is what you need for general usage. While rental car insurance does not cost much, you may do without it.
Contrary to insurance company claims, frequent flyers rarely opt for this coverage. Airlines accidents do not take place often and I case a catastrophe strikes, your life insurance coverage will come in handy.
Life Insurance for Children
Life insurance policies are meant to safeguard your family in the unfortunate event of demise. Children usually do not suffer from fatal diseases or face life threatening situations often. So, opting for life insurance for them is quite futile. Instead you can buy education related policies to ensure they can pursue higher studies in long run.
Flood insurance policies are handy for those who live in river basin or areas close to sea. If you stay away from coastal region, it may not be of much usage to you. However, ensure your house is not near to any large water body or dam.
Mortgage Life Insurance
These policies are meant for paying the cost of house loan when you pass away. It is far better to buy a suitable life insurance policy with high coverage rather than buying mortgage life insurance plans.
These policies are meant for paying minimum bills when you are out of job for any reason. While it does appear feasible, you would do better to save an emergency fund. This will ensure you do not have to pay insurance premium and have access to urgent money.
Insurance for Critical Illness
These policies cover a handful of critical ailments including cancer that require costly treatment. You can never be sure of which disease may attack you when you grow older. If any disease outside the spectrum of these policies affects you, you will be at total loss. It makes more sense to opt far general medical insurance that covers most illnesses including critical ones.
Think before you select an Insurance Plan
As a matter of fact, no insurance policy is foolproof though the company selling it will want you to believe so! Perform online search and compare available policies side by side to get a better understanding before you make payment. Look at the clause and terms of the policy before selecting it to be on safe side.
Evans is a passionate blogger and he currently writes on different finance related topics. He is currently associated with Pittsburgh Independent Insurance Agency.