These Insurance Policies Are Not Beneficial

Insurance companies sell their policies by instilling fear into you. Most people are unable to predict the future but are fearful about covering their financial requirements if or when something undesirable happens. Insurance companies instill fear into people’s minds to sell insurance policies against calamities, diseases, and everything that falls between the two.

None of us wants anything bad to happen, and many of the catastrophes we notice are not even worth buying insurance for. In this post, we will inform you about insurance policies that you would not want to waste your money on.

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“Turning God into some kind of celestial insurance policy is just mental.”

— Justin Welby

 A Private Mortgage Insurance Policy 

Homeowners buy private mortgage insurance policies to increase their monthly mortgage payments. Private mortgage insurance policies are designed to protect the lender who is advancing money to a high-risk borrower. The borrower is required to pay the premium without expecting anything in return.

Private mortgage insurance usually sold to people who make a downpayment of less than 20% on a mortgage. Lenders consider this as a risk and believe that the borrower could default on the loan. To avoid this, make an effort to pay at least 20% of the down payment.

 Extended Warranties

Almost all appliances and electronics are sold with extended warranties. From the perspective of the consumer, these should be considered as a wasteful expenditure because they are never used. As long as you buy reputed branded products, you can rest assured that you don’t require an extended warranty.

 Vehicle Collision Insurance Policy

Vehicle collision insurance policies are designed to cover the cost of repairs to your vehicle after an accident. This is a requirement if you have obtained finances for the purchase of your car. Collision insurance policies are, however, optional if you have cleared the loan. At the same time, you don’t need a collision insurance policy if you have enough money in your account to purchase a new car, especially if you are driving an old one.

 Flight Insurance Policies

Flight insurance policies are absolutely unnecessary. Despite being portrayed by the media as being worth the risk, air accidents are not frequent. In any case, your life insurance policy would already have provided coverage in case you meet any catastrophe.

 Credit Card Insurance Policies

Why would you need a credit card insurance policy as a safeguard against nonpayment of your credit card bill? This is an excellent way to throw your money away. You just need to limit your credit card expenditure and pay off all your bills.

 Lost Credit Card Insurance

If your credit card is lost or stolen, your liability according to federal law limit is just $50. Most credit card issuers don’t even bother to collect the $50 according to the law. Therefore, purchasing lost credit card insurance is nothing but a waste of money.

 Mortgage Life Insurance Policy

Mortgage life insurance policies will pay off your mortgage in the event of your death. However, you should not invest in these policies. Instead, buy a term life policy because it can provide a significant sum to pay off the mortgage and also to cover other expenses of the family.

 Unemployment Insurance Policies

Unemployment insurance policies make minimum payments on your bills if you become unemployed. Although this may seem like an attractive option,  if you can waste money on insurance policies, you can definitely set the same money aside in an emergency account to use if you ever lost your job.

When you consider purchasing any kind of insurance policy, the decision should be yours and yours alone. You shouldn’t allow an insurance agent an opportunity to make some money out of you because you will lose.