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Insurance Gimmicks You Can Do Without

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You know insurance is part of a solid financial plan, so you’ve made sure all your bases are covered with the right kind of coverage. Then you see a commercial or hear about a new type of insurance that sounds pretty good—like an extra layer of protection. How bad can that be, right?

That “extra protection” can just be a gimmick—expensive coverage you shouldn’t waste your money on. Here are a few to watch out for:

Any Life Insurance For Kids

There is no need to buy a life insurance policy for your children, even one like Gerber life insurance, which is a whole life policy that claims to help you save for college. The best way to save for college is with an Education Savings Account (ESA). If you want the security of knowing final expenses are covered should you tragically lose a child, add a rider to your life insurance policy that would simply pay for funeral costs.

Accidental Death Insurance

As the name implies, an accidental death policy pays your beneficiaries if you die in an accident. But no matter how you die, your family’s financial needs won’t change. A term life insurance policy will meet those needs. You’re not double-dead if you die in an accident, so there’s no reason to pay extra for double coverage.

Mortgage Protection Insurance

We all want our families to be secure in their own homes if we die unexpectedly. So many people buy mortgage protection insurance to pay off their mortgage in the event of their death. Again, the proper amount of term life insurance will be enough to pay off the mortgage and support your family. Plus, mortgage insurance is more expensive than term life, and the benefit actually decreases as you pay down the mortgage balance. The same goes for any credit life insurance designed to pay off a specific debt if you die—you simply don’t need it.

Supplemental Insurance For Medical Issues

Insurance is all about transferring risk. If you can afford to take the risk, you don’t need to pay for insurance to protect you. With good medical insurance and a fully funded emergency fund, you won’t need supplemental insurance to help you pay for short-term medical issues. However, you should protect yourself from long-term medical problems with long-term disability insurance.

Cancer Insurance

Cancer is a scary word, and nearly everyone has either seen or experienced its emotional and financial tolls. But your medical insurance covers cancer just like any other disease, so buying cancer insurance is simply adding coverage you don’t need.

Whole Life Insurance

What could be better than providing for your family in the event of your death while saving money at the same time? Well, almost anything else would be better, but a term life policy for 8–10 times your income is the best choice. Whole life insurance includes a built-in savings plan, but the fees are high and the returns are historically subpar. Dave considers it to be the worst insurance product available.

Talk To A Pro About Your Insurance Needs

If you have any questions about the coverage you have or the coverage you need, talk with one of Dave’s insurance Endorsed Local Providers. Dave’s ELPs are insurance professionals who will recommend the same coverage Dave does. Your ELP is also an independent insurance agent, which means he’ll work for you, not the insurance company, to find coverage to meet your needs and budget. Contact your ELP today!

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