Insurance Polices You Do Not Need
Credit Life Insurance - This is offered by lenders, and will pay off various loans such as car, personal, credit card and installment loans...only if you die. In this case, the lender is the beneficiary. To entice buyers, unemployment and disability features are sometimes used. However, the premiums are costly (sales commissions are high) and often the policy's terms are very restrictive. Also, nothing goes to your estate, there is usually a maximum term of around 48 months and seniors between 65 and 70 (those most likely to use it) are not insured. It's usually better to buy more life and disability insurance from your insurance agent. However, if you are medically uninsurable, you might consider credit-life insurance.
Disease-specific Health Insurance - Instead of insuring against a specific disease, like cancer, it's better to get a good comprehensive health insurance policy.
Life Insurance for Children - The basic intent of life insurance is to protect against the premature death of wage earners - kids don't fit into that equation. They also probably won't need it, child could be in need of a medical exam, most young adults get coverage later and insurance premiums may actually drop as your child grows. Children also do not pose as a financial loss and your group life insurance may already cover them.
Accidental-death Insurance - Less than 5 percent of all deaths are from accidents. It is almost impossible to buy the insurance except through a group, credit card or credit union. There are also narrow benefits and a few actually collect. A good life insurance policy is a better buy; it covers death from illnesses or accidents.
Credit card Insurance/Hotline registration - With this coverage, you need to call only one hotline phone number if your credit cards are stolen. The insurance issuer will then notify all of your card issuers of the theft. Although it may be convenient, according to federal law, you are liable only for the first $50 of unauthorized purchases on each card (and liable for nothing if you report the theft before a card is used fraudulently)
Contact Lens Insurance - The cost per year (especially if there is a deductible) may cost more than the cost of a single lens replacement. Unless you frequently lose or abuse lenses, this is not a very good idea.
Mortgage Life Insurance - Although it looks appealing, whereby when you die your house is paid off and your beneficiaries don't have to worry about paying off the home loan, the cost (which is not cheap) is usually added to your loan. It is usually better to buy more term life insurance as protection.