Insurance is there as a buffer for you and your family when disaster strikes. So, it's only natural for insurance companies to have an option for every possible scenario. However, a provider might try and sell you more insurance than you need. Dee Lee, of Money Matters on CBSBoston, warns people against unnecessary insurance.
Buying a plan that only protects against one type of disease is not necessary unless you're at a risk for the disease. For example, women with the BRCA 1 and BRCA 2 gene are more likely to get breast cancer. An insurance policy specifically designed for one disease would not be a bad investment for people with a family history of breast cancer, ovarian cancer, and other types of inheritable diseases. However, if this is not the case for you, making sure you have well-rounded health and disability coverage is more beneficial than buying a policy that only helps with one disease.
You are not likely to die in a plane crash. It is not impossible, but it is highly unlikely. Some credit card companies offer this type of insurance when you purchase your flight ticket.
Death by an automobile accident or a fire is covered by other insurance plans. This type of coverage might not be a necessity. Make sure you have a good life insurance policy.
Life Insurance for Your Children
Although accidents occur, and no one wants to prepare for an accident such as losing a child, according to Dee Lee, it would be more beneficial to save for your child's education than to pay toward a life insurance policy each month.
Credit Card Coverage
No one wants their credit card information to be taken. However, legally the Federal Law limits your losses to $50 per card, so there's no need to spend $200 plus each year on insurance for your card.
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