Should you buy insurance? Maybe.

Should you buy insurance? Maybe.

Nowadays it seems like you can buy insurance for just about anything from alien abductions to zombie apocalypses. But just because you can buy the coverage doesn’t mean that you should. While some policies offer very little for a hefty price tag other policies are duplicate coverage that you just don’t need.

Here’s a list of insurance coverage you should skip and some you should consider having.

Insurance you can skip:

1. Wedding Insurance-These policies cover lost deposits and such if the wedding is canceled because of natural disaster, death, vendor bankruptcy or illness. However some vendor contracts as well as your homeowners insurance may cover these items so it pays to read the small print
2. Mortgage Life Insurance-In case of death these policies pay off the balance of your mortgage. Unfortunately they’re expensive and inflexible because your heirs can’t use the money for anything except paying off the mortgage. It is more cost effective and flexible to purchase a term life insurance policy so your heirs can use the money for more pressing financial needs.
3. Credit Life and Disability Insurance-These policies pay off the balance of a loan or credit card if you become disabled or pass away. Unfortunately that’s all they do. Skip the policy and get disability insurance from your employer to help cover all your expenses if your disabled and life insurance to help your family in case you pass on.
4. Water Line Insurance-Water companies will try to sell policies that cover the water lines from your house to the street. If you live in a newer home or the distance from your home to the street isn’t far chances are you will never use the policy. Also the repairs may be cheaper than paying for coverage.
5. Life Insurance for children-Life insurance is designed to protect heirs and dependents. Since young children don’t have dependents and don’t typically provide income it is a waste of money. Instead use the money to fund their education.

Insurance you should have:

1. Renters/Homeowners Insurance-In case of fire or theft replacing your belongings as well as your home can be extremely costly. Especially if it means you have to find an alternative place to live during the process. Also renters/homeowners policies protect you if someone is injured at your home.
2. Long-term disability-Although it may seem scary just imagine how scary your life would be if you become disabled and have no income. These policies help you continue your lifestyle when you’re unable to work.
3. Health Insurance-Although many people feel they cannot afford health insurance this is one of the things you cannot afford to skip. If you’re injured and required a hospital stay your medical bills will be more expensive than a luxury resort.
4. Life Insurance-If your spouse, dependents or parents would experience financial hardship without your income it is important to have a policy that has at least 5 years worth of your salary. Don’t forget to include the cost of burial.
5. Car Insurance-Obviously car insurance is required in most states but not having enough insurance can leave you with some unexpected expenses. Don’t just consider liability insurance consider under-insured or non-insured coverage as well as personal injury coverage.

While CBC Settlement Funding does not sell insurance, we often talk to individuals experiencing hardships because they lacked the proper insurance coverage. If you’re experiencing financial hardship and have an annuity or illiquid asset you have options. CBC Settlement Funding can help you get the cash from these assets to help you make ends meet. Call us now for a free no-obligation quote at 877-386-3377.

CBC Settlement Funding