7 Unnecessary Types of Insurance Policies – List of Worst Insurance Plans
Unnecessary Types of Insurance Policies: Insurance means a policy that provides protection against big events which effects financially as well as emotionally. Though insurance policies are necessary for our life, many plans are not much use for some people and wasting of money only. Below are seven worst insurance plans and such policies that are not very much useful for everyone.
1) Mini-Med Insurance
This plan has limited benefit which includes very little coverage. This policy is for those people who can’t afford major insurance. This policy is used for minor cuts and scrapes and does not carry coverage of $10,000. The premium cost per month is nearly $50.
2) Accident and Dismemberment
These policies are generally offered by the employer so there is no need to buy it oneself. Instead of investing money in this plan, it is better to buy doubling a death benefit or some other type of insurance. It involves coverage for accidents involving a death or dismemberment.
3) Divorce Insurance
Divorce insurance is not making emotional or economic sense because before starting a marriage, how one can plan for its failure?
Wedlock Divorce Insurance is a website which calculates divorce cost by using its exclusive calculator. Wedlock also sells divorce insurance policies which premium is $15.99 per month. Policies are matured in 48 months i.e. the benefit of divorce would get after four years only and not earlier than that.
4) Comprehensive or Collision Coverage for Old Cars
Collision covers the cost of replacement and repairs after a typical accident of car, while comprehensive not only covers those things but also covers fire, theft, vandalism and falling objects.
But many times, only a single basic car accident also covers most of the things which are enough for an average car. There is no need to take extra or collision coverage for lower value car.
5) Car Rental Insurance
If a person has car insurance then there is no need to buy a rental car insurance. If your car insurance covers a rental car then additional insurance is needed when you drive outside the country or have high deductibles.
6) Term Life Insurance
Term life insurance is wasting money like renting a home while whole life is insurance is buying a home though it is expensive. About 92% of term insurance policies never pay a benefit because people give up the policy before they die.
7) Mortgage Insurance
Mortgage insurance is about 200 percent to 300 percent more expensive than term life insurance. However, it is helpful to those who have an illness or medical history.
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