Insurance Policies
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10 Policies Worth Paying For
These days there are insurance policies for just about anything. And it can be tricky to determine when it is worth paying for protection and when you're just pouring money down the drain.
To help steer you in the right direction, WalletPop.com's Jonathan Berr shares his list of 10 types of insurance that are worth the money.
Click through our gallery to see which policies he recommends -- and why.
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First Up: Insurance Policy No. 1 -
No. 1: Life Insurance
Why It's Worth It:
This is especially important if people count on your salary to pay the bills, whether it's a spouse or your family. "Many people put off getting life insurance," said Jeanne Heisler, a New Jersey agent. "It's very inexpensive, especially if you are young." Single people may not need the coverage if they have enough money to cover their funeral expenses and pay off their debts.
Next: Insurance Policy No. 2 -
No. 2: Homeowners
Why It's Worth It:
Banks require that people get this coverage which protects homeowners from property damages caused to other people before they agree to underwrite a mortgage. The key is to make sure that there is enough to cover the replacement value of the home, according to the Insurance Information Institute. Personal items such as furniture, sports equipment or clothes are protected from "insured disasters" such as a fire or hurricane.
Next: Insurance Policy No. 3 -
No. 3: Health Insurance
Why It's Worth It:
Though millions of Americans do not have access to affordable health care, some people choose to go without it even though they can afford it. "It's surprising, the number of people," said San Francisco agent Scott Hauge who calls such people "immortals -- the people who are under 30 years old and think they are going to live forever." Among the reasons why people need the coverage is that health insurers get breaks from providers and on prescription drugs because of their purchasing power.
Next: Insurance Policy No. 4 -
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No. 4: Auto Insurance
Why It's Worth It:
Going without auto insurance is a risk not worth taking. Not only are there fines and penalties involved, but the costs involved in an accident where a motorist is found to be even partially at fault are substantial. The Insurance Information Institute recommends that drivers make sure that they have uninsured motorist coverage which is not mandatory in all states.
Next: Insurance Policy No. 5 -
No. 5: Umbrella Policies
Why It's Worth It:
This is relatively inexpensive insurance that protects people against additional risks not covered by their auto or homeowner's policies. New Orleans agent Don Beery calls it "sleep insurance", meaning people should get as much as they need to sleep at night. As many residents learn, homeowners insurance doesn't cover floods. "They don't think they need it because they aren't sitting near a river or an ocean," said Heisler. "Chances of having damage from flood and rising water are greater than a fire."
Next: Insurance Policy No. 6 -
No. 6: Disability Insurance
Why It's Worth It:
Though this often is provided as a benefit by large companies, many people that should have this coverage do not have coverage that protects them in the case of serious accident or injury. "There is a greater chance that you will have some sort of disability during your working years than dying," Heisler said.
Next: Insurance Policy No. 7 -
No. 7: Long-Term Care
Why It's Worth It:
People also might want to consider coverage to pay for nursing home care or at-home care also is a good idea for customers once they reach middle age. "As you get older, it becomes more expensive," Beery said. Remember that Medicare doesn't pay for what is called custodial care and private insurance may only pay a very limited amount.
Next: Insurance Policy No. 8 -
No. 8: Jewelry & Art
Why It's Worth It:
People with valuable art, jewelry and other collectibles need to get a rider to their homeowners' policies. Otherwise, they won't be protected in case they are damaged by fire or are stolen. "Some people never get around to scheduling their jewelry or fine arts," said Rebecca Woan, principal of Chartwell Insurance Services of Chicago.
Next: Insurance Policy No. 9 -
No. 9: Renters Insurance
Why It's Worth It:
People who rent their homes shouldn't assume that their landlord's policy will cover them in the event of a fire or other disaster covered by insurance. Moreover, like homeowners, renters are also potentially liable for any damages guests may incur while visiting their homes. "Compared to the amount of property you could stand to lose in the event of a severe loss at your residence, renter's insurance is cheap," according to Geico.
Next: Insurance Policy No. 10 -
No. 10: Pet Insurance
Why It's Worth It:
As dogs, cats and other pets live longer, they are starting to get many of the same ailments that affect humans such as diabetes and heart disease which can be expensive to treat. A variety of coverage is available that's similar to health insurance for humans. "The cost of coverage is based on the animal's age, health profile and the level of care the owner chooses to buy," according to the Insurance Information Institute. "Generally, the older the animal the higher the annual premium will be."
More on AOL: Policies to Avoid -
More on AOL:
10 Insurance Policies to Avoid
When it comes to insurance, people often think that it's better to be safe than sorry, but often wind up spending more money than they should on coverage they don't need.
Click through our gallery to see 10 of the more common types of insurance that experts believe are a waste of money for most people.
10 Policies to AvoidMore in Money & Finance:
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Recent Comments
Jennlilac7 02:46:35 AM Apr 18 2008
Umbrella policies have NOTHING to do with water!!! This is a blanket excess liability policy which provides coverage for all your assetts. This policy will be needed in the event of a lawsuit, when you are held personally liable for an injury. A $1,000,000 policy will cost you around $200 per year.
Oh, and the reason why auto insurance rates are high is because there is so much fraud out there!! So, you can thank all the dishonest people out there for that, NOT the companies providing coverage for you!
And regarding home insurance rates: One important factor in determining rates is the how much they have to pay out in claims. Home insurance is for major losses, NOT maintenance!!! Thanks.
Vluongo 10:21:05 PM Apr 17 2008
My father passed away unexpectedly in a car crash along with his best friend when I was very young. Thank Gof that he left my mom a large insurance policy. We were able to live a good decent life. My brother and I were able to go to college as planned thanks to my father buying life insurance. And my mom never had to try to find BS jobs. She always maintained her dignity. My dad's friend's wife and kids, however, had miserable life(s). They lost their home, car, and went thru their life savings because her husband did not believe in life insurance and never bought any. The wife had to go back to work with small kids at home and the kids became latch key kids. She worked two crappy jobs just to try to make ends meet to support her family. She eventually married some loser who was a drunk and a low life just because she needed money to support her family. Boy am I a believer in Life Insurance. I own several life insurance policies because I love my family and wouldn't want them to
NMeek48409 03:00:32 PM Apr 17 2008
Our father, a lawyer, had several insurance policies and annuities and they were meant for the beneficiaries of his estate. Right after he died his wife managed to place them ALL in her name with HER daughter as the beneficiary.
See the Video
http://youtube.com/watch?v=d_PiKumEPVU
Onlyme5858 02:55:07 PM Apr 17 2008
Be very carefuly when buying Ins, be sure you go over policie before buying
James from Shopdaddyo.com
T n Scones 01:46:38 PM Apr 17 2008
Umbrella Insurance has nothing to do with flood protection or any property coverage not covered on a Homeowner policy. It is excess Liability insurance over the Liability on one's home and auto policies.
JUCHARGEJE 10:53:45 AM Apr 17 2008
THE SIMILARITIES AMONG POLITICS AND INSURANCEV COMPANIES?
JUCHARGEJE 10:46:59 AM Apr 17 2008
Most of the Insurance companies are a scammmmmmmm.
Last year I cancelled my life insureance after paying more than $7k in 4 years. I found our that the insurance Company was going to stop coverage on the 10th year. I was frustrated knowing that I am not dying in 3 more years ( Joke ). So, I cancelled the insurance and with the insurance payments schedule to make in the future, I purchased a car for my daughter who is doing her first year at the University. I lost $ 7k. Furthermore life insurance are not tax deductibles!
MFVCHANTILLY 10:46:20 AM Apr 17 2008
the best insurance you can have , is your own money on a saving account.
it's the only way
if you d'ont do that you "WILL BE DENIED"
did you see the movie SICKO?
NMeek48409 10:38:43 AM Apr 17 2008
Our father, a lawyer, had several insurance policies and annuities and they were meant for the beneficiaries of his estate. Right after he died his wife managed to place them ALL in her name with HER daughter as the beneficiary.
See the Video
http://youtube.com/watch?v=d_PiKumEPVU
JulianPotts 08:21:57 AM Apr 15 2008
Life insurance is a legal gamble that you hope to lose. You pay your money and are in no hurry to collect.
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