Insurance Products You Can Skip
Insurance companies are rolling out a number of new types of insurance policies to help protect people from a wide range of risks. Although some of these products provide necessary coverage to protect against catastrophic events, others prey on the fears of the public and provide coverage that may be unnecessary for most people. Here are some insurance products that many people can do without.
Life Insurance For A Child
Life insurance policies that are specifically designed to insure infants and children are presented to parents as a way to cover burial costs or unpaid medical bills if some horrible illness takes the life of their child before the age of 18. Premiums for these policies average $213 a year. Fortunately, only one in 3,000 children perish each year, meaning you will be paying for an insurance product that has very little chance of every being paid out. It may be better to save money in a separate savings account for the child that can be used for funeral expenses in the event of their death or college expenses when they graduate from high school.
Tuition Protection Insurance
Tuition protection insurance insures parents against lost tuition payments if their child must leave college due to illness, injury, or a limited number of hardships as determined by the insurance policy. With college tuition reaching thousands of dollars annually, it makes sense that parents would want to recoup that money if their child must leave college for reasons other than academic performance. This insurance may be unnecessary for most people because many colleges already offer partial refunds of tuition if a student drops out because of a medical condition.
Identity Theft Insurance
With cyber attacks at large companies releasing the personal information of thousands of individuals at a time, many people are beginning to consider identity theft insurance as a way to protect themselves if their personal information is stolen. Many companies now offer some type of insurance against identity theft, credit-card theft in particular, and some include credit monitoring that will alert you if a new account is opened under your name. Many people do not need these services from companies that specialize in the insurance because most credit cards have identity-theft protection through the issuing company and cardholders are not responsible for any unauthorized or fraudulent charges on a credit card.
