This blog contains some simple tips and advice from two regular guys. We're not accountants, financial advisors, or brokers, so follow, ignore, or discuss our ideas as you see fit.

Saturday, September 27, 2008

Article: 14 Useless Insurance Policies

Posted By Paul

As a new dad I find myself revisiting all of my insurance coverage with a new eye. As always the world of insurance is overwhelming and exhausting. I've been trying to go through each type of insurance (medical, life, auto, etc) and figuring out what changes I need to make as a new dad.

An article I came across that was related and which I thought was interesting comes from one of my favorite pages: The Dollar Stretcher.

It talks about 14 different types of insurance, specifically saying why the author feels you probably don't need them. The 14 types covered are:

1. Accidental death insurance
2. Automobile collision
3. Automobile medical
4. Cancer/dreaded disease insurance
5. Credit card fraud insurance
6. Credit card insurance
7. Extended warranties
8. Flight insurance
9. Flood insurance
10. Life insurance for a child
11. Mortgage life insurance
12. Optional group life insurance
13. Rental car damage insurance
14. Scheduled property

If you have been thinking about any of these insurance policies recently, then the concise info is worth a look.
The article is called:

14 Useless Insurance Policies


ravi said...

gd post most of the people take the insurance policies for additional.thnx 4r gd list so that other will not be taking this

Craig said...

Well, I have been in the insurance business for many years. What it comes down to is what amount of risk do you feel comfortable assuming on your own. If you want to assume all of the financial possibilities of an auto accident, buy all means; only take out the legal minimums.

My thoughts on this list:
1. Accidental death insurance - crap shoot, may pay out may be a huge waste of money.

2. Automobile collision - this is a very goo idea to have, you don't want to be the sole person that needs to pay for that green Lamborghini’s bumper that you just tapped. (about a $10,000 repair)

3. Automobile medical - if they are referring to Personal Injury Protection (PIP), each state mandates if you need to have some or none. This is a good idea to have. Again, that guy in the Lambo you hit, your neck may be injury and chiropractors are not cheap.

4. Cancer/dreaded disease insurance - again, a crap shoot.

5. Credit card fraud insurance - crap shoot

6. Credit card insurance - crap shoot.

7. Extended warranties - not always a good idea, my wife has been through 4 power supplies for her lap top computer at $80.00 but with the extended warranty, all 4 cost less then the warranty. Much less.

8. Flight insurance - dumb.
9. Flood insurance - if you live on a shore line, any shore line, river, lake or ocean, this is a very good idea, mortgage companies will require it in many cases.

10. Life insurance for a child - very silly

11. Mortgage life insurance - unless you are always sick or your souse is a dare devil, not really worth it and more or less a crap shoot.

12. Optional group life insurance - not worth it, personal life insurance is more than enough.

13. Rental car damage insurance - depends, it leaves you liable (in some cases) for $0.00 in damage. If you have never driven in NYC or as in my case England (on the wrong side of the car and road) this may not be a bad use of your money (I got into a "bit of a bump in Pitlockry Scotland to the tune of 2000 GBP or at the time $4K when the option insurance was just $250, less than my auto deductable)

14. Scheduled property - haven't heard of this, will not comment on it.