When looking to cut down on expenses this year, don’t forget to examine your insurance policies. You’d probably be surprised to learn you have duplicate coverage, or coverage that just doesn’t make sense.
Mortgage insurance is for when you can’t pay your mortgage for health reasons or if you’ve died. It guarantees your mortgage will get paid. But isn’t that what health and life insurance is for? Your life and health insurance probably covers this and if it doesn’t, no reason you can expand your coverage in one of these other insurance policies to include the mortgage. It’s a far cheaper solution than having mortgage insurance.
Credit insurance is for when you can’t pay off your credit cards. It comes in many forms. Unemployment credit insurance, health credit insurance and credit life insurance are just a few of the combinations you may have. Again, you’d do well to check your health and life insurance policies for overlapping coverage. As for the other forms, you’d do well to stay within your budget and not abuse your credit cards to the point you get into debt. It’s much cheaper to pay off your balance every month. Can’t pay off your balance? That’s a sign you’re spending too much!
You probably don’t need this one either. The only reason you’d need it is if the odds say you’re going to get a very rare type of cancer normally not covered by your health insurance policy. The best solution would be to expand your health insurance coverage. It’s a much cheaper solution.
Usually, the credit card you used to purchase your travel tickets has some sort of basic coverage. If not, odds are there’s something in your life or health insurance that covers this.