In an economy where the average price for a gallon of regular grade unleaded gasoline costs an average of more than $ 3.50 in the good old United States of America it is becoming increasingly difficult to stretch a dollar. Finding a lost life insurance policy is also very difficult. Sometimes when we are stretched so thin it seems increasingly important to protect what we already have. It does not help the decision making process when the insurance industry provides policies for nearly every circumstance you can imagine, as well as some you never would. While life insurance, at least a policy large enough to cover funeral costs, should be a purchase that most adults make there are other insurance policies around that are essentially sponges for money that we cannot afford to spare.
Home owner's insurance, health insurance and auto insurance are all necessities. Those of us who are the primary income source for our families should also protect that income; this is where disability and/or long or short term care policies can be important to maintain. However, there are insurance policies that make little or no expense. These policies are, for all intents and purposes, frivolous expenditures even if they seem like they provide coverage that you really need.
Mortgage life insurance is designed to pay off any existing balance that remains of your mortgage if you die before paying off your home. Instead of spending your hard earned income on this pricey insurance you can designate part of your term or whole life policy to pay any balance off if you die. Standard life insurance policies offer more protection at a more affordable rate. If your lender requires you to carry a private mortgage insurance policy to ensure your home loan because your down payment is not large enough you should consider more creative financing options such as a slight increase in interest rate in exchange for a reduced down payment and the exemption from the insurance requirement.
While people in flood plains and tropical storm areas should think about purchasing flood insurance the bulk of us are not at risk. However, if you choose not to add flood coverage to your existing home-owners insurance make sure that your sump pump has a battery backup in case of power outage and that it has enough power to keep groundwater from entering your property in the case of overwhelmed drainage systems.
Federal law states that owners of credit cards can only be held responsible for the first $ 50 of charges made on their accounts if the card has been stolen. While it may take some time to get things straightened out with your creditor the added costs of loss insurance for your credit card are not worth the savings.
The cost of accidental death insurance comes at a much higher rate than that of term life insurance. Term policies cover you in case of natural death due to accident or illness making accidental policies redundant. It is more important to make sure that you have adequate life-insurance in place instead of worrying about the statistically miniscule chance of dying in an accident.
Instead of purchasing your own unemployment insurance your money would be better spent investing in a savings plan to cover you if you happen to lose your job. The insurance is only designed to make minimum monthly payments on credit card accounts or auto loans. These expenses can often be negotiated with the credit providers if you lose your regular income.
Always think things through before purchasing additional insurance policies. Your standing health insurance will cover most, if not all, of your expenses if you are diagnosed and treated for cancer so policies like cancer insurance become redundant. This is common among unusual types of insurance. Stay on your toes!
About the Author: Michael Hartmann is a licensed Life Insurance Agent with over 12 years experience in the financial industry. He created FindYourPolicy.com after his father's passing making him recognize the importance of having a central life insurance database. Register your life insurance company name for free or search the database. http://www.FindYourPolicy.com
Orignal From: Important Insurance Advice
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