Do I Need This Insurance?

Credit Card Protection Insurance-Ranks at the top of worst insurance purchases. It claims to make payments for you in case of illness or disability. These payments usually come after jumping through a lot of hopes. It also pays your credit card balance upon death. This is great for the credit card company since it is unsecured debt. You are buying insurance to protect them.

If you are concerned about paying your bills during while out of work. You should consider a disability insurance policy that can handle more than just your credit card bills. Note that disability policies come in many forms. They are not all created equal.

Single Illness Policies – Cancer, Heart Attack, and Stroke – It is likely that someone close to you that has been stricken with one of these conditions. It may be tempting to spend money on a policy that will pay you in case of illness. Under a lot of these policies people with a family history may not qualify. Those who do qualify may run into issues when trying to collect. Whenever you buy a policy you should get the advice of a local insurance agent.
Your best bet is to make sure you have good health insurance combined with a good disability insurance policy if monthly bill payment is an issue.

Mortgage Life Insurance – As with credit card insurance it is designed to protect the lender. While it is important to make sure that your family is protected. This can usually be accomplished at a lower cost by increasing or adding additional term insurance.

Child Life Insurance- The fundamental reason for Life Insurance is to replace income. In this context you can see that Child Life Insurance is overpriced and unnecessary except for the most unusual cases (Child Stars).
It can be argued that guaranteed insurability is a reason to buy some insurance on a child. This may end up being true in the future for some children. Statistically the likelihood of a child developing a condition that makes them uninsurable is extremely small.

Rental Car Insurance – This one is necessary. However for many people this coverage is already in place. You need to talk to your auto insurer and your credit card company to get a full picture of your coverage. Some things you need look for are Deductible, Collision and Comprehensive coverage, Personal Liability, Theft Protection and Loss of Rental Income.

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