Some types of insurance are a necessity. Health insurance is one of them. And if you have a home and a car, you probably have some type of home or auto policy. Naturally, though, insurance doesn’t end there. All kinds of insurance policies have been developed to protect you from all kinds of things—from alien abduction policies to pet insurance.
Of course, for some people, these more obscure policies might be worth it. Though property (home or renters), auto, and health insurance are the most popular and necessary policies, that doesn’t mean you won’t look into other policies. For example, life insurance policies are also common. And depending on where you live, you might be required to purchase something like mine subsidence insurance. That said, here are a few policies it’s probably safe to skip.
Private mortgage insurance doesn’t really do anything to protect you, the buyer. Instead, it protects the lender in case you’re unable to make a mortgage payment. The better option is usually to save up more and make sure the down payment on your home is big enough that your lender doesn’t require PMI.
Mortgage life insurance exists so that, should your spouse unexpectedly pass away, you’ll be able to continue making mortgage payments. However, you might just be doubling up on insurance you already pay for. A life insurance policy’s benefit can be used for anything you need it for, including paying off your mortgage.
Though it might seem like a good idea at the time, tacking on these extra fees to your trip often isn’t worth it. It’s unlikely a catastrophe will occur on your trip, or at least one your life insurance wouldn’t cover.
Also be sure to look at your credit card benefits when you book. Some credit cards roll travel protections into your other benefits. For example, if you rent a car, you might be eligible for rental car insurance through your credit card. Other cards might provide things like travel accident coverage or lost baggage insurance.
Accidental death and dismemberment policies pretty much do what the name suggests. In the event of an accident resulting in death or dismemberment (loss or loss of use of body parts/functions) AD&D policies cover you. Unfortunately, these policies are often limited. Additionally, if you’re still employed, many companies cover AD&D for you, making it unnecessary to buy your own coverage.
Disease insurance may also seem like a good idea. Perhaps, for some it is. However, if you have health insurance, your primary health insurance should cover treatment-related expenses. Also, these policies don’t always protect against the diseases you need them to. For example, some cancer insurance won’t help you if you have skin cancer, one of the most common cancers.
The bottom line is that, as with everything, your mileage may vary with your insurance policies. For some, the above policies may be worth it. Just be sure to read the policy carefully and really consider whether the extra payment is worth it!