Skip to main content

Insurance that you might not know about

Insurance can be confusing. Sure, you could be on the safe side, and get every type of insurance possible. But the cost of premiums would outweigh any protection that you receive.  Here are some necessary types of insurance and some that you would be wise to avoid.

Home insurance is almost always a good idea. Yes, if you have a mortgage, the lender will require you to have your house insured in case of fire, robbery or natural disaster. People who have their mortgage paid off should probably retain this insurance because an unexpected fire damage or even storm damage can lead to repairs that most people are unable to afford.


Renters insurance protects valuable things on this inside of your apartment, such as your belongings. Because insurance is not always required to rent an apartment, some people don’t bother to have this. However, if their belongings are destroyed, they will have no recourse to get them back.

Life insurance - Even if you do not have many possessions to worry about if you pass away, life insurance can still be a good idea. The cost of a funeral and burial can be steep, meaning that family members may be stuck with the bill if you happen to pass away. Funeral costs is not the first thing that people think of when an untimely death occurs, but life insurance is very cheap for younger people and it can more than cover this type of expense.

Depending on the type and size of your business, liability insurance can be a necessity. If you have your own business or are an independent contractor, you probably need business insurance for liability. If someone is injured as a result of a service or product that you provided, the insurance will cover the cost to reimburse them.

Kinds of insurance you probably don’t need

Identity theft insurance - It might take a little leg work to undo the damage done when someone steals your identity, but most problems can be cleared up in several days. There is really no need to get identity theft insurance. 

Collision insurance on old cars - In most states, drivers need to have liability insurance in order to drive.  However, once you have paid off the loan on your car, you no longer need to have collision insurance.  This means that if you are in an accident, you will not receive any money to fix your car.  If you are liable for the accident and must pay the other driver, the insurance will pay for you.

Specialty health insurance (cancer or disability insurance) - Unless you have a high genetic risk for a certain type of disease, this type of insurance is not necessary.  A good regular health insurance plan will cover these types of illnesses, as long as they are not pre-existing conditions.  New healthcare laws in the US will soon make it illegal for insurers to deny coverage based on most pre-existing conditions. This will truly make cancer insurance obsolete.  

Travel insurance - You can purchase different types of travel insurance. Some insurance simply covers you if your vacation is canceled.  These policies are hardly ever worth considering, unless you are overly concerned about traveling during hurricane season in the Caribbean. Even then, the cost of rearranging your flights and hotel may be less than or equal to your insurance premium,  If you are traveling far abroad, travel health insurance and air evacuation insurance may be a good idea. At the very least, you can buy a cheap insurance plan that covers you if you need to be evacuated by air.

Dental insurance - Dental insurance is one of the more difficult forms of insurance to come to a decision about. Dental services are not always covered under health insurance plans. Dental procedures can be quite expensive, making it difficult to pay out of pocket. However, the odd cavity and check up isn’t going to break the bank, making it possible to consider foregoing any sort of dental coverage and opting to try to convince your health insurance to pay for anything too serious. 

Comments

Popular posts from this blog

Why it’s important to save for retirement

While retirement may seem far off in the distance for some, financial experts say you’re never too young to begin saving.  In fact, the earlier you calculate your retirement needs and start building your nest egg, the easier it will be to create a viable plan for the future. Many experts advise you begin saving a percentage of your income for retirement as soon as possible, no matter how little the contribution may be, as it’s possible the Social Security benefits millions of people currently depend on may be in jeopardy.

Low interest credit cards - how to make them work for you

Credit cards are borrowing instruments, unlike debit cards where you already have the money. Banks are there to make money too. Just like high street stores, they hope to maximise their profits within the rules. So it’s important to understand the basics and find a credit card that’s right for you – you can compare low APR credit cards here . Now you know the rules, let’s find out how to play the game. The financial services industry charges interest on the money that it lends out. Let us assume you borrow £100 on your credit card and keep it for exactly one year before you pay it back. For the purposes of this article, we will assume your loan attracts 8% interest per year, which is the Annual Percentage Rate, or APR for that particular transaction. Practical example

Basics of Stock Markets: The A-Z Quick Sheet for a Beginner-Level Investor

Several individuals wish to engage themselves in stock market and invest their money in stocks, but they don’t have an idea about Stock markets and how they work . In fact, there may be lot of info available to you, but they may all seem confusing without actually knowing the basics. This post aims at educating the beginners about the basics of stocks market. Read on to enlighten yourself about the A-Z of stock market. 

Looking For Ways To Finance Your Next Building Project? Look No Further

If you need money to start your next building project, you may be quite surprised by the number of different options you have. However, the options that will actually be available to you will depend on many different factors and these factors will decide how eligible for construction finance you are. In this short article, we will look at what you can borrow, how you can borrow, and what restrictions you might come across. Please note that while the information in this post is correct, your own personal situation will determine what the best course of action is for you. Speaking to an independent financial advisor will help you to see if you are eligible for construction finance and how to go about getting it. Different Types of Mortgages Let’s start with the different types of mortgages that may be available to you. Remember, whether one is better for your needs than another depends on many factors. Commercial Mortgages Let’s start with commercial mortgages because they a

Four factors that have fuelled city-centre living

Urban centres have become increasingly popular in recent years as both residential locations and as commercial space. This social change has been driven by a number of factors and has been reflected in the number of new property developments springing up in major cities around the UK. As space tends to be at a premium in urban areas, it has led to the construction of a greater number of apartments; potentially fuelling interest in block of flats insurance . So why have so many people decided that an apartment in a town is a better place to live than a larger house in the country? Here are four factors that are likely to have spurred on the rush for the city...

Manage Your Student Loan Debt Better in 2015

Image via gettyimages It is usually seen that most of the students fail to manage their student loan debts efficiently after their graduation. The reason is quite simple. Most of the students spend their earnings on comfort and luxuries instead of repaying their student loan debt. It has become comparatively easy to acquire student loans. However, each one of us should keep in mind the fact that repaying loans are not easy as borrowing it. This is why there arises the need of a proper strateg y when it comes to managing your loans. It is desirable to formulate these strategies while you are still in college instead of waiting until you get a good job. If you are one of this kind, here are some easy tips for you to manage your student loan debt better:

Learn how real estate agents value properties for sale

How do you get into real estate sales? Every owner wants to sell his property for its maximum value. And all too often they end up choosing a real estate agent simply based on who gives them the highest initial valuation. However, this will be a costly mistake. How your home is valued. If you make a mistake in the estimate, it is possible that it will be sold for a price that is less than the real value of the property. On the other hand, even overpriced homes will discourage potential buyers from viewing your home. Also, high selling prices can even result in a long wait before a good deal comes in or does not sell at all. Therefore, titration is recommended as a suitable agent. Here are some things that real estate agents consider during property valuation . But, few factors real estate agents consider when valuing a property. 1. Local services:   During property valuation, one of the main factors that can drive the sale price up is the actual area where the home is located. Aspects