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What
type of insurance you should avoid?
Insurance
to Avoid
Insurance helps you manage risk by passing some
of it along to a third party — the insurance company — in exchange for the
payment of a premium.
Here are 3 primary reasons to be insured:
1.
Things happen. Accidents, illnesses, injuries, thefts and natural
disasters happen all the time. Any of these events quickly can drain your
savings and put you into debt.
2.
Another reason to have insurance if The law says so. Almost all
states require drivers to carry auto liability insurance. The same goes for
health insurance (the Affordable Care Act is still the law at the time I am
recording this video)
3.
Lenders say so. Your car or home can be seized
by a lender if you default on your loan. Lenders don’t want to lose their
investment, so they insist on certain levels of coverage.
Now,
let’s take a step back for a moment and talk about situations where insurance
is not worth the purchase or is unnecessary.
Ask yourself these questions before buying
add-on insurance:
1. Do I really need
this insurance?
2. If I do need it, do
I already have this coverage in an existing insurance product such as home,
health, life or auto insurance?
3. Are there other
less costly ways to get this coverage?
There are at least 4 types of insurance that
you probably want to avoid or look into with more detail before purchasing.
- Credit insurance or debt
cancellation insurance –
This pays off your debt in case of death, illness, injury or loss of job.
You may not need this
if you have adequate life or other insurance to pay off debts. Typically these
policies pay less than 50% of the premium you pay in because of kickbacks paid
to the seller.
- Title insurance – This guarantees the title to a home is
free from any other ownership claims.
This type of insurance
is important for the buyer, in particular, but be careful before accepting any
title insurance company offered by a real estate agent, company or lender. It’s
important to shop around before purchasing title insurance.
- Travel insurance – This covers your costs in case your
travel plans are interrupted.
You may not need this
if you have coverage through life insurance (in case of death) or homeowners
insurance (lost luggage). You might consider medical travel insurance
though if your health plan does not cover international travel.
- Rental car insurance – These policies cover you if you have a
collision in a rental car.
Most car insurance
plans already cover you when you rent a car. Also, using your credit card to
rent a car may carry coverage. Check your car insurance policy and credit card
before agreeing to purchase this insurance.
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Thanks for sharing the blog, seems to be interesting and informative too. Can you suggest some of the interesting places to visit for Overseas Travel Insurance India
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