March 5, 2019
By Mary Beth Eastman

3 Types of Insurance You Might Not Actually Need

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There are some types of insurance that you must have. Home insurance, car insurance, health insurance — these policies provide you with a financial safeguard in the event of an emergency. Plus, it can even be against the law not to have them sometimes. There are other types of insurance, however, that you don’t actually need. People take out these policies because they think they need them, but they’re actually wasting money. Here’s how to be smart about your insurance policies.

Life insurance provides family members with funds after a loved one dies. It’s very important, especially if you have children or other people who depend on you for income. If you pass, it provides them with the money necessary to pay bills and eat. But if you don’t have any dependents, though, who are funds for? In many cases, you can save yourself the premiums and get rid of this insurance if you’re single with no dependents.

Sometimes, travel and health insurance policies overlap, and you could be paying for the same thing twice. If you fall ill when you’re on vacation, for example, your health insurance policy might provide you with the coverage you need for your medical care. In this case, there’s no point in taking out additional travel insurance — your existing health plan has it covered.

You may find that your health insurance actually won’t cover your bills, depending on when and where you’re traveling to. You also might want extra protection against stolen luggage or canceled flights, in which case you’ll still want those aspects of travel insurance. But if you find you’d be paying for the same thing twice, you might be able to reduce your travel insurance premiums.

Identity theft is more prevalent than ever before, and insurers are at the ready. Identity theft insurance, however, could be more than you need, depending on your situation. Taking the necessary precautions when online, safeguarding your bank accounts, freezing your credit and checking your credit reports on a regular basis can sometimes alert you to problems before identity theft insurance can.

On the flip side, without insurance,  you alone are on the hook to cover the costs of having your identity stolen. The best identity theft protection will actually protect the victim if the worst comes to pass — sometimes up to a million dollars in coverage.

While some insurance policies are mandatory or essential, others won’t provide you with any value at all. The types of insurance on this list might suit some people, but you could be paying for services that you can’t use in the future. Now’s a good time to review your insurance, shop around for the best price, and cancel the policies that you no longer need so you can focus on the ones you do.

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