Top 5 Insurance Policies To Avoid

Doesn’t it seem like there is always an insurance decision to make? Whether it is from a new purchase you make, a decision at work, or someone calling you to buy something over the phone, insurance decisions are being made every other month in our financial plans. It is often confusing to figure out which insurance programs make sense, and which is just a waste of money. While hindsight is 20/20, here are five insurance policies you want to avoid in the future.

  1. Mortgage Insurance– When you buy a new home, you will typically get a mailer to buy an insurance policy that will completely pay off the mortgage upon your death. If you are reasonably healthy, buying a level term insurance policy through any of the major insurance companies will often be much cheaper than buying this type of insurance.
  1. Wedding Insurance- Isn’t there a big problem if you are buying insurance in the event your wedding doesn’t happen? While the premiums on these policies may only range from $200 to $500, you need to really review what exactly the policy covers. Spend the money on doing something fun for your guests at the wedding. The risk trade off just isn’t good enough on this one.
  1. Credit Life Insurance– This type of insurance will typically pay off your credit card at death. The premium will seem minuscule, usually costing less than $1 per month. However, if you are reasonably healthy, getting appropriate term or permanent life insurance coverage will be a better buy in the long run.
  1. Air Travel Life Insurance– You need a certain amount of life insurance . . . not more life insurance if you die in a plane. If you want to go to Vegas to have some fun and bet, go ahead and book a room. You probably don’t want to be betting on your own death with a double down on the next Delta flight? Air Travel is still the safest form of travel, and the least likely place for you to collect on this type of insurance.
  1. Private Mortgage Insurance– How do you avoid this? Make sure you put 20% down on a house. I know that is a novel idea, but maybe you just aren’t ready to buy the type and size of house you are shopping for unless you can make the down payment. This insurance can be very costly for a new home owner.

These are five favorites of mine not withstanding how much I hate any type of warranty for electronics items bought from stores. Make sure you read the fine print of any type of insurance policy you buy, and don’t get ripped off!

Check out these articles! –

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About the author  ⁄ Ted Jenkin @ Your Smart Money Moves

Ted Jenkin @ Your Smart Money Moves


My friends and family all think I’m a workaholic, but I say I’m just a guy that loves to help people do better in life.

My mother is still the only one that calls me by my real name Theodore Michael, my wife calls me Teddy, but for the rest of you it is just plain old Ted.

Ever since I was a little kid, I always loved money and being an entrepreneur. In fact, I still have cassette tapes of me talking to my grandmother at the age of five and my mother tells me all the time how much I played with money as a kid...

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Ted Jenkin is a frequent guest columnist for the Wall Street Journal and Headline News Weekend Express. He is the co-CEO of oXYGen Financial. You can follow him on LinkedIn @ www.linkedin.com/in/theceoadvisor or on Twitter @tedjenkin.

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