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 donâ€™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 donâ€™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 manufacturerâ€™s warranty that is more than adequate coverage for your new purchase.
photo courtesy of wegetnoticed