It may seem to the average person that there is an insurance policy for just about everything in this life. Health, auto, life, dental, travel, pets, homeowners, unemployment, business — the sheer range of possible coverages can seem overwhelming at times, and these are just the major types of coverages available. What do you actually need and what can you do without?
What You Need
In most circumstances there are five insurance policies from those listed above that most people need to consider purchasing:
Homeowner’s or Renter’s Insurance.
What You Can Do Without
Then there are insurance coverages that are unnecessary, and the number of them available is quite staggering. Let’s focus on three that definitely fit into the category of insurance you probably can live without.
Insurance on Your Credit Accounts
Often, this type of coverage is sold to unsuspecting consumers as being similar to homeowners having to buy mortgage protection insurance. Nothing could be further from the truth. The only true beneficiary for this type of policy is the insurance companies that sell them. While on the surface this type of insurance might appear as if it will pay off your balances on your credit accounts in full should you be unable to make your payments due to injury or disability, or losing your source of employment income, the reality is quite different. In most instances the amount actually paid out each month is no more than your monthly payment — and that’s if you can get them to pay at all.
Fraud Insurance on Your Credit Accounts
Despite occasional, and mostly unreliable reports about credit card fraud being perpetrated on an unsuspecting public, it rarely happens. Insuring against it is almost always a waste of money that would be better spent on the types of insurance coverages you truly need. While some people feel as if this type of coverage provides them peace of mind, the truth is identity theft and credit card fraud are more than adequately covered in terms of your maximum liability by provisions set by both the federal government and the credit card companies themselves. Save your money.
Credit Card Fraud protection that pays back the money stolen from you can be expensive. On the other hand, identity theft affects more than just your credit card. There is a useful “Identity Theft” endorsement that you can add to your homeowner’s policy. It is inexpensive, and, although it does not pay for the money stolen from you, it covers the extra expenses that possibly can happen if someone steals your identity. If you would like more information, call us at 865-922-3111 (local) or 800-624-3339 (toll free) or click here to contact us.
Life Insurance Policies for Children
If you have children you’ve probably heard one or more of the reasons that are spoken in favor of purchasing life insurance on them:
It provides funeral expense costs.
It creates a great savings opportunity for them.
It locks them into a lower rate for future purchases.
Do yourself and your children a big favor and don’t buy it!
Life insurance is a vital component of a family’s financial security planning, and the breadwinner, or breadwinners, should carry a face amount that will protect the family against estate taxes and provide sufficient income in the event it is needed. You’d be far better off in allocating the money you contemplated spending on life insurance for your child into a college fund.
Insurance is Important
Sometimes we don’t like to admit it, but carrying adequate insurance that helps cover expenses for the death of a loved one, to protect us from liability and to cover repairs and replacements for our homes and vehicles, is something we should all take seriously. Since you’re already here, be sure and peruse other areas of this site for valuable information on those forms of insurance coverage that are crucial for you to carry for the sake of yourself and your loved ones.
If you’d like, call us at 865-922-3111 (local) or 800-624-3339 (toll free) or click here to contact us. We will be happy to help you look at your current coverages and needs to help you decide the best choices for your insurance.