How To Analyze Your Insurance Policies


INSURANCES THAT YOU DO NOT NEED


In these trying economical times, everyone's trying to figure out what to get rid of and what they absolutely do not need to spend money on.

In the case of most people, cutting costs has become essential in trying to make ends meet.

Insurance is one area where you can save a substantial amount of money simply by figuring out what kind of insurance you have and then whether or not you need it.

Let's examine some of the biggest wastes of your insurance dollars and then you decide if you want to continue paying for them.

There might be some circumstances where someone would want to keep their policies but for the average consumer, these types of insurance just aren't necessary!

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CAR RENTAL INSURANCE


You're paying for the collision damage waiver (CDW) which can double your rental charge! Check your own car insurance policy but you'll probably find that you are already covered for rental cars.

Another place to check is on your credit card. Most credit cards also have rental insurance coverage.

If you find out you're covered for rental cars, don't ever pay for car rental insurance again!

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CANCER INSURANCE


Cancer Insurance. Most policies are pretty expensive - at least $400 per year and the bottom line with these policies is that many cancers are not covered.

They claim that you will get huge payouts if you get cancer and that's what draws people to get the policies in the first place. Nowadays who isn't worried about cancer?

Check the policies very carefully for loop holes such as certain types of cancers not being covered.

A regular health insurance policy should cover cancers regardless of type.

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ACCIDENTAL DEATH INSURANCE


Statistically, accidents are the third leading cause of death in people ages 45-64, but the statistic is that they cause less than 5% of deaths in general in all age groups.

The statitistics for people over 65 years of age dying from accidental causes drops to less than 2%.

While this might be an "okay" policy for younger people, a better investment for your family is a term life insurance policy.

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CREDIT AND MORTGAGE DISABILITY AND LIFE INSURANCE


These are insurance policies meant to cover minimum payments on your credit cards and loans for up to 36 months on most policies.

However, they are very expensive and are a high profit item by way of commissions for the insurance broker.

It's estimated you could pay up to 4 times more for this type of insurance than if you put it into term life insurance.

Check on increasing your disability benefits to the maximum at your place of employment or checking into life insurance through them.

You will pay much less than through an individual insurance company.


MORE INSURANCE POLICIES YOU DO NOT NEED

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CREDIT CARD FRAUD INSURANCE


This is totally unnecessary insurance because you already have it! Credit card companies expect you to report fraudulent charges as soon as you realize that someone has made them on your card, you've lost your card or it is stolen.

At most by law, you are only required to pay $50 of any charges fraudulently applied to your credit card and the credit card will reverse them as soon as you notify them, cancel your card and reissue a new card.

Most times, they waive the $50 charge as well. This just happened to us and I know it to be true!

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FLIGHT INSURANCE


By far, you are safer in a plane than in a car!

The likelihood of a crash is not worth the expense of purchasing flight insurance. 

If you have life insurance, you are already covered!

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UNEMPLOYMENT INSURANCE


This is an insurance that will pay on your credit card for 6-12 months if you no longer are employed. 

If you have savings, you can pay this on your own without the expense of having unemployment insurance. 

It would make more sense to put the money for the insurance in the bank!

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EXTENDED PRODUCT WARRANTY INSURANCE


This is something every store in the world pushes at you and the chance of you ever using it is about nil. In all the years that we've purchased extended product warranties, we've used them once.

Most products have their own warranty anyway and if something goes wrong, you can return it.

How many things do you need to buy extended product warranty insurance on?

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HOSPITAL INDEMNITY INSURANCE

This type of insurance policy grabs people with the incentive that if you're hospitalized, you could make up to $100 per day. 

Not too many people are in the hospital for procedures these days - most are turfed and surfed.  Most procedures are routinely done outpatient.  So where is the benefit of this policy and paying all your dollars into it? 

Many people without health insurance look to these policies to cover them in case something catastrophic happens but no hospital is going to charge you $100 per day.  This policy will not begin to pay the fees charged by hospitals which run into the thousands per day not hundreds. 

The policy also does not cover lab fees, procedures, x-rays, etc. so that $100 per day is chickenfeed weighed against a staggering medical bill. 

That's why health insurance is a vital insurance to have.

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HOW TO KEEP FROM BEING INSURANCE RICH AND CASH POOR


In short, these are some ways to trim the fat off your budget when it comes to insurance.

You can get rid of these insurances and save your senior dollars!

If you're paying for any of these insurances, take a look at your other policies and see what's covered and what isn't, such as rental cars, credit card fraud, etc.

If you can eliminate these insurance policies from your budget every month, think of the dollars that you can put back in your own pocket - or better yet into the bank.

Especially if you are a senior, money counts and the more you know, the better you can enjoy your sunset years.

Take a look at better bets like term life insurance policies or work through your employer for insurance if you are still employed or your spouse is.

No need to throw money away on insurance policies that are more for the insurance brokers than for the clients!

If you have more ideas on insurance policies we do not need, please contribute to the hub by adding your comments below.

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Comments 18 comments

akirchner profile image

akirchner 4 years ago from Central Oregon Author

Thanks Superp~


superpipoy profile image

superpipoy 4 years ago

A very useful and informative hub. Thanks for sharing such very detailed information about the insurances that are very useful for each of us!


akirchner profile image

akirchner 5 years ago from Central Oregon Author

Thanks so much for stopping by, G1pkn - I think in life today we all have too much of everything and it's time to start reevaluating what we truly need!


g1pkn profile image

g1pkn 5 years ago

I think you are absolutely correct, you can have too much insurance if you think about it. You could spend all your money on insurance if you insured everything.


akirchner profile image

akirchner 5 years ago from Central Oregon Author

Thanks so much GI for pointing that out and that is totally true! I appreciate you adding to the article.


GuardianInsurance 5 years ago

There are some really great tips in this article for people who don't want to be overpaying for insurance that they don't need (which should be all of us). However, I would emphasize that whether or not you need some of these types of insurance depends on your personal situation. For example, accidental death insurance may not be financially the right choice for most people but if you happen to work in a job where it is likely that you could be involved in a serious accident then it may be worth it. Great job on this article!


akirchner profile image

akirchner 5 years ago from Central Oregon Author

Thanks so much Darski - you are too sweet - and I think I did just write a series although I still have 43 unpublished left! So stay tuned....more down the financial road.


Darlene Sabella profile image

Darlene Sabella 5 years ago from Hello, my name is Toast and Jam, I live in the forest with my dog named Sam ...

Okay Audrey this is crazy you are writing some of the best stuff on the web, for peats sake I think you should do a series on classes for writing, NO I am serious no joking around here. I would be the first to sign up, you are simply awesome my friend, and you are dedicated to make money, be a strong member of this community and to improve on everything you do. This hub is the best, I rate you soooooooooo high up I will break the rating button on this. People are lazy I shop every year and it is alway another less expensive company, so kudos darlin love & peace darski


akirchner profile image

akirchner 5 years ago from Central Oregon Author

Thanks Prasetio for your kind words and for stopping by - insurance is a mind boggling subject sometimes for me!

Hanna - thanks for stopping by and you are dead right!


Hello, hello, profile image

Hello, hello, 5 years ago from London, UK

Some insuranceyou just have to have but most of the insurance are a con. Great hub.


prasetio30 profile image

prasetio30 5 years ago from malang-indonesia

I always care with insurance and now I got more useful information about insurance from you. Thanks for share with us. I really appreciate your effort to make this hub. And this hub totally great. Vote up. God bless you!

Prasetio


akirchner profile image

akirchner 5 years ago from Central Oregon Author

Will - That is such a bummer - I remember we had one of those by our house and they just shut the doors! There is so much of that going on - the scams. We pay good money for these warranties and they basically mean nothing. I'm sorry you fell victim to it but thanks for pointing that out.

Thanks bayoulady!


bayoulady profile image

bayoulady 5 years ago from Northern Louisiana,USA

Just rated you truly useful/up!


WillStarr profile image

WillStarr 5 years ago from Phoenix, Arizona

Knowing better, I allowed myself to be talked into a four year extended warranty on a laptop when my daughter began college. It was Circuit City! When the company collapsed, I was assured that the warranty would still be honored, but that was untrue.

Beware and be aware.


akirchner profile image

akirchner 5 years ago from Central Oregon Author

MT - Thanks so much for stopping by - I hope so...last one of 5 today and it's all starting to blur together!


Minnetonka Twin profile image

Minnetonka Twin 5 years ago from Minnesota

This hub is going to help many people that are paying out monies that are just not neccessary. This is written clearly and concisely. Nice job


akirchner profile image

akirchner 5 years ago from Central Oregon Author

Thanks Will - it is funny what we get 'talked into' these days, eh?


WillStarr profile image

WillStarr 5 years ago from Phoenix, Arizona

Excellent advice (perhaps more so since most of it is also my long standing advice!)

Up and useful.

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