5 Insurance Policies You Don't Need

by Vernon Williams

1. Mortgage Life Insurance

When you purchase a house, insurance companies will try to sell you mortgage insurance. Do not buy a separate policy to cover your mortgage. Simply determine the amount of insurance (if any) that you need to protect your dependents, buy a cheap term life insurance policy and make your spouse the beneficiary.

2. Accidental Death

Death is death. Your dependents do not need more money if you die in an accident rather than as a result of an illness. As with mortgage insurance, determine the amount of insurance (if any) that you need, buy a cheap term life insurance policy and make your spouse the beneficiary.

3. Cancer Insurance

Since your life and health insurance will pay out regardless of the diagnosis, you do not need a special policy to cover a particular illness.

4. Credit Life Insurance

This pays off your credit card or consumer loan balances if you die. Since this coverage is extremely expensive, skip this coverage and take out a low cost term policy as discussed above.

5. Children's Life Insurance

The purpose of life insurance is covering your dependents if you die before accumulating enough assets that you do not need life insurance. As much as you love your children, you probably are not dependent on them financially. So, skip the policy on children. If you insist on having sufficient coverage to pay for final expenses on children, add a child rider to your own life insurance policy. It will cost less than $50 per year.

Shop around for the lowest premium life insurance. There are over 1500 life insurance companies. Premiums vary by hundreds of dollars for the same amount of coverage. For example, for $100,000 worth of term life insurance for a 35- year-old male, I recently found annual premiums that ranged from $886 to $2194.

Receive free, no obligation quotes for life insurance at www.howtocutyourexpenses.com.

With over 20 years of experience as a personal financial educator and counselor, Vernon Williams has developed in depth knowledge of what it takes to achieve financial success. Today, he is a sought after trainer and speaker by organizations from both the public and private sector. He is the author of 425 Ways to Stretch Your $$$$ and 3 Rules that Guarantee Financial Success. Visit Vernon at www.howtocutyourexpenses.com.

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