Having insurance for certain aspects of your life will provide you with a number of great benefits but there are times where you invest money into insurance plans that are not providing you with any type of benefit and they are not able to do anything for you besides steal your money. You need to know what type of insurance plans you should invest money into and which ones you can do without.
Mortgage Life Insurance
If you have a life insurance policy already, why would you take out another life insurance policy? There are a lot of lenders that try to get people to sign up for a mortgage life insurance program. Mortgage life insurance will pay off your mortgage in the event of your death. While this does sound nice, most life insurance policies are already going to add in your mortgage costs when you are choosing the coverage amount. This just shows you that you will end up paying twice for the same thing.
Credit Card and Loan Insurance
Similar to the mortgage life insurance, a lot of credit card companies and loan companies will offer insurance to pay off the loan in the event of your death. You need to carefully consider this as well since you are likely choosing a life insurance policy that will pay off any additional loans like this if you do pass away.
Unemployment Insurance
Most people that are laid off will be able to collect unemployment benefits through the government. The only people that should consider unemployment insurance are self-employed individuals that may need financial assistance if their company goes under as they may not be eligible for the same type of unemployment benefits as a traditional employee.
Always read the fine print when you are looking into insurance policies. You need to know what you are paying for and if you should be paying for these various insurance policies as many of them are a waste of your money.
