According to the Insurance Information Institute, Americans spend more than $1.1 trillion on insurance premiums a year. In these economic times, not many can afford to pay for policies that they will likely never need. So it is important to know what kinds of policies you need, and which one you can get away without having.
The bottom line, unless it is for you life, your healthcare, your home or your vehicle, insuring it is probably not economical or necessary.
We all love our pets, but is it wise to take out expensive policies for their care? If your loved pet has chronic problems, it may be smart, but in most cases, says financial expert Jeanette Pavini, it is probably best to just set aside an annual fund for your pet’s healthcare.
“In addition to premiums, you also have the responsibility of co-pays, medications and deductibles, which quickly add up. Plus, with most plans, the premiums rise and coverage declines as your pet gets older — when they are more likely to need costly procedures.”
Cell phone insurance
The monthly premiums add up, and if your phone needs replacing, it will come with a deductible and chances are you will get a refurbished phone instead of a new one.
Most of the benefits of wedding insurance are already covered by your credit cards, provided you use them for all deposits instead of cash or other forms of payment. The gifts and rings, if lost, can be covered by your home owner or renter’s policy.
Identity theft insurance
The Federal Trade Commission oversees consumer protection laws that spare you from most of the damage of identity theft.
Now for the kinds of insurance that you should have.
This is necessary if you have a family or other dependents and are an income earner. If you live alone and are supporting nobody else, it may not be needed. If you have a policy at work, it should be sufficient to cover any burial costs, so the burden is not left to surviving loved ones. And if you do have dependents, you need only purchase life insurance for the wage earners in your domicile. It will help the survivors to compensate for a lost income source.
Healthcare is very expensive in the U.S., and even a minor injury or illness can seriously set you back financially. Healthcare insurance is a must. If you have a policy at work, keep it. Buying individual health care insurance is prohibitively expensive for many.
President Obama’s healthcare reform policies, a battleground for politicians at the moment, have made the near future of health care in America uncertain, however.
For most of us, a home is the largest purchase we will ever make. There is just too much at stake should it burn or be damaged in a storm or flood or earthquake. You can now get insurance quotes on the Internet, much like with car insurance, so be prepared to shop around for a good, competitive deal.
This is the one type of insurance we are legally obligated to get in nearly every state. For most of us, however, there is no need to purchase more coverage than is required by your state. And again, it is easy to get quotes online, so do some shopping around.