Useless types of insurance to avoid like the plague

Here’s is a good link from Bankrate.com on 14 types of useless insurance to avoid.  It’s good information and ties in with the article I wrote recently on auto insurance (and how a saved a bunch of money on my car insurance by switching to GEICO…)

The main moral of the story linked below is that for any event related to your death, you should just buy adequate life insurance (likely term life, which I recommend.)  For property, often your car insurance, homeowner’s/rental insurance, or sometimes your credit card will cover you.  Often your employer has some types of insurance (life, disability) built into your compensation package gratis; check this out as well.

As a follow-up, here’s a brief introduction to life insurance on ‘Get Rich Slowly’.  Again, for 95% of people, I recommend using Term Life if you have dependents (and NO life insurance if you DON’T have dependents.)

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2 Responses to “Useless types of insurance to avoid like the plague”

  1. Do you suffer from these common big money mistakes? « Words of Ward: Ward's Guide to Personal Finance and Investing Says:

    […] 2) Next, create an emergency fund to “self-insure” against paying deductibles and for other smallish losses. Read my other articles about paying less for auto insurance premiums, and also about using catastrophic/high-deductible health insurance. Because we think about all the terrible things that could happen to us, no matter how unlikely, we sometimes buy insurance we don’t need.  Go here to learn about insurance you should avoid. […]

  2. Intro to Insurance – What you need to insure (and what insurance to avoid) « Words of Ward: Ward's Guide to Personal Finance and Investing Says:

    […] 4) Cash value life insurance: I’ve mentioned this once already under the life insurance rules of thumb section, but it bears repeating: all except the wealthy who need more ways to save on taxes should AVOID cash value life insurance, such as ‘whole’ or ‘universal’, like the plague! […]


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