March 1, 2011

What Insurance Is Unnecessary?

While no one wants anything unfortunate to happen to them, the fact is that catastrophes can and do affect a great majority of people. Fortunately, insurance offers at least one way for a family to cope with such a tragedy. But when selecting a potential ailment or circumstance to protect one's self against, it is important to ask if such coverage is really necessary. Car insurance is required by law and home insurance is practically a must. But there are some kinds of insurances that the average person could do without. There might be a benefit to getting these types of insurance, however, generally speaking, they only apply to small sector of people and in worse cases, be wholly unnecessary. Here is a list of some of the worst offenders.

Cancer Insurance: While this may seem like a good idea, it is important to note that having cancer insurance may invalidate clauses that already exist in your normal health insurance. Such policies could stop a patient from receiving payment. The same can be said for stroke insurance and heart attack insurance. Generally speaking, it is safer to stick with your normal plan. Or, better yet, find a policy that covers a wide range of ailments.

Accidental Death: A lot of what qualifies as "accidental death" is already covered by alternate terms of insurance. Accidents that happen at home or in your car are covered by those particular policies. And you're covered at work in case something happens. Life insurance would be a better choice.

Flight Insurance: Despite all the horror stories on the news and internet, this is one policy that can definitely be skipped. First off, any good life insurance policy would still stay in affect if something happens while on a plane. Secondly, the chances of getting killed in an airline accident are one in 843,000. And those numbers are based on the airlines with the worst accident rates. On more reliable airlines the chances of being killed while on board plummet even further, nearing one in 92 million in the 2000s. Save some money and buy some extra souvenirs.

Flood Insurance: Flood insurance is another type of insurance that many people could ignore. Generally speaking, if the area around your house has never flooded, it is unlikely that it will happen while you are living there.

Life Insurance for Children: This may sound strange at first. No one wants anything bad to happen to a child. But life insurance affects pay-outs to heirs and dependents. And since children do not have to worry about either one, many parents can skip this. A better plan would be to open up some kind of retirement savings at an early age for the child. An IRA for example.

As with most things, it is very important to know where your money is going. By understanding what kinds of insurance policies need consideration and what kinds don't, you can be sure your money is going exactly where it should be, should something unfortunate or unforeseen happen.

Make an informed decision about the best life insurance quotes by visiting Income Protection Insurance. Also make sure to visit Buy Macquarie Life Insurance for your life insurance needs.

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