You may think that everyone needs to buy insurance, but that is not the case. In reality, some folks may be better off foregoing some types of insurance. The following are some reasons you may not need to buy insurance.
1. You Are Going on a Trip
Although travel insurance is great to have in some instances, there are other times when it is just not necessary. A short trip is one instance where you may not need travel insurance. This is because the cost of a short trip is often less than the price of a travel insurance policy itself. Additionally, if you paid for a flight with a credit card, you are already protected under federal credit laws. If your flight happens to get cancelled, these credit laws protect you because you paid for services that were never rendered.
2. You Bought a Television
If you have ever purchased a new appliance, chances are you have been asked if you would like to purchase an extended service plan for it. These extended warranties are usually not necessary because they often include the same coverage as the original warranty. In addition, most appliances do not end up needing the services covered under these extended service plans. Make sure to read through your warranty thoroughly before purchasing any additional coverage. Also, look for warranties that can be purchased after your original factory warranty expires.
3. You Took Out a Mortgage
Mortgage life insurance is often seen as a valuable type of insurance to have because it either pays off your mortgage completely or pays your monthly mortgage payments should you die or become disabled. What you may not realize is that you probably already have this coverage if you carry a separate life insurance or disability insurance policy. Even if your mortgage is not covered in your life or disability insurance policy, it costs much less to add to your existing policy rather than take out a new, separate mortgage life insurance policy.
4. You Have Credit Cards
Some lenders may lead you to believe that credit insurance is a necessity. In reality, credit insurance is often a waste of money. For starters, most credit insurance premiums are based on a certain percentage of your overall credit balance. If you carry a high balance, the amount you pay for credit insurance coverage is often close to your actual payment itself. Another reason to skip this insurance is because it usually only pays your minimum monthly payments for a certain amount of time should you become ill or disabled. Most credit insurances will not pay off your entire balance. Lastly, you may carry enough life or disability insurance to take care of your credit card balances. There is no reason to pay for coverage you do not need.
5. You Have Pets
Pet insurance, while valuable for some folks who would do anything to save their pet, is usually not a necessary type of insurance to have. This is because pet insurance premiums are often quite expensive. Also, most pets will not require care that equals or comes close to those premiums over the course of their lifetime. If you have pets, it may be a better idea to save a little money each month in case something goes wrong, rather than take out a pet insurance policy.
These are all great reasons to not buy certain types of insurance. Always remember to read the fine print on everything so you know exactly what you are getting yourself into. You do not want to end up paying for insurance that is not necessary in your life.
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