Don’t Waste Your Money On These Insurance Policies
There are many insurance policies designed to help individuals and families weather tragic events and unfortunate circumstances, but some are primarily designed to take your money while giving you little in return. Often, these unnecessary insurance products insure you for something that you are already insured for under a different policy. In other cases, the benefits received are not worth the price paid for the insurance. Here are several types of insurance products that you can do without.
The Retailer’s Extended Warranty
An extended warranty is an insurance product that is supposed to protect you in the event that your new purchase becomes damaged or broken during the time period that the extended warranty is in effect. Although these warranties may seem attractive for high value items, they are usually unnecessary because the items are nearly always covered under another warranty already. Most high value products are covered by a manufacturer’s warranty for up to one year and, if the purchase is placed on a credit card, the credit card issuer may extend or double the length of the manufacturer’s warranty. There is no reason to pay extra for something that is already available to you.
Insurance Against ID Theft
The costs of fixing a case of identity theft can be astronomical and take years to repair, but identity theft insurance will not ease the process. In most cases, companies that sell you identity theft insurance are selling you something that you can do for yourself for free, namely monitoring your credit accounts and credit history for suspicious activity. With a small amount of time and effort, you can protect yourself from ID theft and save yourself the $20 – $50 per month that you would be spending on ID theft insurance.
Credit Card Life Insurance
Although the prospect of leaving your beneficiaries a credit card bill after you die may seem unappealing, the answer is not to purchase credit card life insurance. These insurance products promise to pay off your credit card in the event of your death, but your beneficiaries can accomplish the same thing with a cash life insurance payout that is large enough to cover the credit card balance and will cost you less in premium expenses. Traditional life insurance should be able to cover all of your liabilities and leave your family with sufficient money to regain their footing after your death.
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