• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Clever Dude Personal Finance & Money

Clever Dude Personal Finance & Money

Family, Marriage, Finances & Life

  • Toolkit
  • Contact
  • Lunch
  • Ways to Save Money
  • About the Clever Dude

Guest Posts

Don’t Make The Mistake Of Paying For These Insurance Products

July 2, 2014
By Clever Dude
- Leave a Comment

apple-computer-store

People have been conditioned to believe that they need insurance for everything. Commercials on television are constantly telling us about all the bad things that could happen to us and how buying a certain type of insurance can protect our possessions and our finances. Unfortunately, some insurance products seem to be solely designed to line the pockets of the shareholders of the insurance companies, not protect consumers from financial disaster. Here are some commonly purchased insurance products that you probably don’t need.

Payment Protection Insurance Policies

Payment protection insurance is advertised as a way for consumers to avoid becoming delinquent on payments on their credit cards in the event that they are unable to pay their minimum payments due to circumstances beyond their control. For a set amount added to their balance each month, they were reassured that they would not have to worry about making their payments for a period of time if they experienced a specific type of financial hardship, like an extended illness that left them unable to work. Unfortunately, many people found that payment protection insurance policies were overly expensive, offered little protection, and was often unavailable when it was really needed due to extremely restrictive conditions. Due to the success of recent legal actions, companies such as PPI Claims Adviceline can now help affected consumers get their money back for these policies.

Whole Life Insurance

Life insurance is supposed to give a family peace of mind and financial assistance in the event that a primary breadwinner passes away unexpectedly. However, many people have been purchasing expensive whole life insurance policies expecting that their family will receive a windfall if they should happen to die. In many cases, a less expensive term life insurance policy is sufficient to ensure that the needs of your family will be met for a few years should you happen to die due to an illness or injury. A licensed insurance agent should be able to help you find a great term life insurance policy that will meet your needs.

Extended Warranties For Electronics And Appliances

Another type of insurance that you probably don’t need is that extended warranty offered every time you purchase a new electronic device or appliance. Salespeople will tell you that you need the insurance to be protected in the event that something happens to the item you purchased, but the slight risk that something may happen years from now is not worth the hundreds of dollars extra that you are paying for the protection. Most expensive items come with a manufacturer’s warranty that is more than adequate coverage for your new purchase.

photo courtesy of wegetnoticed

Reader Interactions

Comments

  1. Kate @ Money Propeller says

    July 8, 2014 at 6:14 am

    I didn’t know that there is an extended warranties for electronics and appliances, definitely I wouldn’t purchase it. Obviously, it’s just a waste of money, I think the one year free warranty is enough.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Are you feeling the call to be a Clever Dude? Then, let's get down to brass tacks and explore what it takes to be one. Get ready for an in-depth look into the anatomy of someone who exudes cleverness!

There's nothing like hearing you're clever; it always hits the spot!

Best of Clever Dude

  • Our Journey to Debt Freedom
  • Ways to Save Money Series
  • Examine Your Motives Series
  • Frugal Lunch by Clever Dudette
  • An Illustrated Frugal Lunch
  • I'm Tired of Buying and Spending
  • 50 Tips for New PF Bloggers
  • Other Personal Finance Blogs

Copyright © 2006 - 2021 District Media, Inc. All Rights Reserved. Privacy Policy Sitemap
Disclaimer: The Ads expressed herein are exclusively those of the Advertiser. They do not necessarily reflect our personal or professional beliefs.