If you take the time to think about it, or to do a google search about it, you will soon realize that there are a wide variety of different types of insurance policies that a person could, potentially, apply for. While some kinds of insurance are obviously going to be of use to you in case tragedy strikes, other types of insurance may not be as necessary. There are some insurance policies that you probably don’t actually need.
You probably don’t really need a life insurance policy for your children. You definitely need a life insurance policy for yourself, and for your spouse, but not necessarily for your children. Life insurance is something that helps cover the cost of your funeral expenses, and the hospital bills that your health insurance policy didn’t cover. If you have planned well, then your life insurance policy will pay off whatever is left on your mortgage. Life insurance is way to make certain that your family will have the finances that they need in order to continue their lifestyle after you are gone.
Your children, obviously, don’t have spouses, and they are too young to have children of their own. In other words, children don’t have dependents. They also don’t have a mortgage to finish paying off. So, you probably don’t need a life insurance policy on your child. However, you might need it if your child has a terminal illness, or if you intend to turn this life insurance policy over to your child when he or she turns eighteen. Keep in mind, though, that your child may need to upgrade the policy at that point, anyway.
You probably don’t need disease insurance. A typical health insurance policy should cover at least some of the medical bills associated with cancer treatment, or with a wide variety of other diseases. Disease insurance is limited, because it only provides you with coverage for one, specific, disease. If you end up getting a disease that isn’t the one that the disease insurance policy was for, then it is not going to give you any financial help, at all.
You probably don’t need credit card insurance. Credit card insurance usually offers to pay your bill for you in the event that you cannot pay it, due to unforeseen circumstances. In other words, if you lose your job, then the credit card insurance will kick in and cover your credit card payments for a certain amount of time. If you haven’t maxed out your credit card, then you probably don’t need this type of insurance. You can probably handle the small amount of debt you have without it.
Image by Andres Rueda on Flickr