Some insurance policies you can do without
You buy insurance to protect you from a potentially devastating loss. That's why home, health, auto and life insurance make sense.
Consumer Reports says you can do without insurance policies for things like lost cell phones and identity theft which are often sold by hyping the risk.
"It takes a small threat and it blows it up as though it's going to be a big catastrophe and then they charge you what seems to be a small premium, but there are also deductibles and co-pays and other things," said Jeff Blyskal, a senior editor at Consumer Reports.
Blyskal says pricey premiums can seem a lot smaller when they're advertised on a per-day basis.
"The way these things are priced is they throw you off and they alter your perception of is it a lot or is it a little, it's a lot, it's too much," he says.
Here are few types of policies Consumer Reports says you don't need.
Credit Insurance: It promises to pay off all or some of your home loan if you die or become disabled. Consumer Report says you get better protection with a life insurance and disability policy.
Flight Insurance: Some people buy this before they fly, hoping to protect loved ones if they're killed in a plane crash. Again, term life insurance is the way to go.
Identity Theft Insurance: These policies sometimes promise to pay up to a million dollars if you become the victim of an ID thief. Consumer Reports' Jeff Blyskal says that's more marketing hype than anything else.
"In most cases most people who are victims of identity theft actually pay nothing because their covered if their credit card is stolen is covered by consumer protection laws," Blyskal said.
Consumer Reports says skip insurance for specific diseases. You want comprehensive health and major medical insurance.
And there's no reason to buy a life insurance policy for your child, even if it's only a buck or two a day. You buy life insurance to protect your dependents if something happens to you. So this coverage is simply unnecessary.
More Information:
Consumer Reports: Insurance Policies You Don't Need
Consumer Reports says you can do without insurance policies for things like lost cell phones and identity theft which are often sold by hyping the risk.
"It takes a small threat and it blows it up as though it's going to be a big catastrophe and then they charge you what seems to be a small premium, but there are also deductibles and co-pays and other things," said Jeff Blyskal, a senior editor at Consumer Reports.
Blyskal says pricey premiums can seem a lot smaller when they're advertised on a per-day basis.
"The way these things are priced is they throw you off and they alter your perception of is it a lot or is it a little, it's a lot, it's too much," he says.
Here are few types of policies Consumer Reports says you don't need.
Credit Insurance: It promises to pay off all or some of your home loan if you die or become disabled. Consumer Report says you get better protection with a life insurance and disability policy.
Flight Insurance: Some people buy this before they fly, hoping to protect loved ones if they're killed in a plane crash. Again, term life insurance is the way to go.
Identity Theft Insurance: These policies sometimes promise to pay up to a million dollars if you become the victim of an ID thief. Consumer Reports' Jeff Blyskal says that's more marketing hype than anything else.
"In most cases most people who are victims of identity theft actually pay nothing because their covered if their credit card is stolen is covered by consumer protection laws," Blyskal said.
Consumer Reports says skip insurance for specific diseases. You want comprehensive health and major medical insurance.
And there's no reason to buy a life insurance policy for your child, even if it's only a buck or two a day. You buy life insurance to protect your dependents if something happens to you. So this coverage is simply unnecessary.
More Information:
Consumer Reports: Insurance Policies You Don't Need
