ARTICLES > Six Insurances You Probably Don't Need
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Six Insurances You Probably Don't Need
1] Extended Warranties.When purchasing a used car or a product from many department stores you may be asked if you would like an Extended Warranty which covers the product for malfunction once it is outside of the usual warranty period. It seems quite sensible to sign up for but it is quite unnecessary. In New Zealand we have The Consumer Guarantees Act. This Act says that goods sold must be, “fit for the purpose that the retailer has told the consumer they are fit for,” and “must be of acceptable quality.”The Act is fairly vague on purpose but what it means is that goods that are purchased should continue to function for the time you’d expect for such an item. So, let’s take a refrigerator for example: You would expect a fridge to last longer than three years, so don’t bother with a three year extended warranty, you are covered by the Consumers’ Guarantees Act. 2] Car Rental Insurance.When you rent a car, you are given the option of extra insurance which will lower the excess should you have an accident. Immediately you think, “maybe I should get that. The excess is high without it and I could have a crash!” Before you take out car rental insurance, check three places; your current car insurance policy, your credit card, or, if you are overseas, your travel insurance. These all sometimes come with car rental insurance. So, it could be you don’t need the extra insurance, you may be already covered.Of course, if you do not have it, you need to decide what the excess would be and if it is worth the added cost. Last time I rented a car overseas the excess without insurance was $1000. However, the extra for the insurance added up to $1500 for the period I had the car. It was, obviously, cheaper for me not to bother with the insurance. 3] Credit card insurance.These are designed to pay off your credit card debt should you fall ill or have an accident that prevents you from earning an income. Usually the policy will pay around 15% of your debt each month. Credit card insurance is expensive and unnecessary. Disability coverage is cheaper and far more effective.Most the following types of insurance have some positives to them, however, a good Life Insurance policy will be less expensive and render these policies unnecessary. 4] Funeral insurance.There is a big push now to get over 50s to take out insurance to ensure their funeral service is paid for. The reality is, while a funeral may be expensive, for most people it is a fraction of the value of their estate, particularly if they have property and life insurance policies. A better option is to make sure your life insurance is up to date. Of course, if you have no insurance or property, this type of insurance may be of use to you.Note also – some Life Insurance policies include a funeral benefit for little or no extra cost. This can be a worthwhile addition to your policy. 5] Mortgage Insurance and Mortgage Life Insurance.Mortgage Insurance pays off your mortgage in the case of your death, and you can also cover your repayments in the event of a long term disability. If you have a mortgage it is vital that you cover it with insurance, but these may not be the best options for doing that. A good Life Insurance and/or Income Protection policy will do the same thing usually for cheaper premiums and better cover. Furthermore, with a Life Insurance policy, when the insurance is paid out and you receive the benefit amount, you can chose how you want to use it.6] Accidental Death Insurance.This sounds like a great option for a younger person, and especially if you work in a risky job, but the reality is, it is only for accidental death. Cancer, heart attacks, strokes and the like are not covered. A better option is to get a comprehensive life insurance policy.►Two Things to Remember about Insurance:1] Insurances should be reviewed regularly. Your circumstances will change and so will premium costs and the like. You may be able to save money by rearranging your insurances.2] A common mistake many people make is to have inadequate or outdated insurance. They keep saying to themselves, “I’ll get around to updating it sometime,” but never do. Once you need to make a claim it’s too late.
When it comes to Life Insurance FORTIfi are experts. FORTIfi Ltd offers a free Life Insurance review. If you’d like to make sure that your life policy is the best for your situation contact us now and one of our insurance experts will make an appointment and come to see you. No charge, no obligation, no pressure. You can book your free insurance review:
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Insurance is one of those things we pay for but, most of the time, hope we’ll never have to use. Going without it, however, can be to court financial hardship. In fact, many people have taken the gamble of going without insurance only to later find themselves in financial trouble that takes years to climb back out of.
