There are a variety of insurance policies that are considered good investments of your money, and many that you absolutely shouldn’t go without, including automobile insurance if you drive a car, life insurance if you have dependents, and health insurance.  On the other hand, there are a number of different insurance policies that pop up that could actually be more a waste of money than anything else!

Mortgage Life Insurance:  A mortgage life insurance policy is a plan that will pay for your mortgage in the event that you become permanently and completely disabled or you die.  If you’re married, this policy seems like a terrific idea because if you should die before your spouse, you know the spouse will not have to pay for the mortgage on his or her own.

If you have a life insurance policy already, either a separate policy you have purchased or one offered through your place of employment, chances are the mortgage would already be covered.  A standard life insurance policy gives your beneficiary the money that can be used for whatever they need to use it for – including the mortgage.    It really doesn’t make much sense to purchase a policy specific for your mortgage if you already have one that would cover it.  It makes more sense to pay for a general life insurance policy that your beneficiary could use to pay for whatever he or she chose, rather than have to use it only for the mortgage payment.

Cancer Insurance: With the number of people who are diagnosed with some form of cancer each year, it may sound like a good idea to invest in an insurance policy to cover medical expenses related to cancer.  Maybe not!  Cancer insurance doesn’t cover skin cancer, which is the leading type of cancer, and most policies won’t cover any outpatient expenses that a cancer patient undergoes during their treatment.

In addition to what cancer insurance doesn’t actually cover, the fact is – if you have health insurance, it will almost always cover medical expenses (both inpatient and outpatient) related to cancer patient care.

If you’re concerned about cancer coverage, check with your primary health care insurance first to see if they would cover cancer related expenses.  If not, then you may want to consider a cancer insurance policy (or looking into a better health care insurance, if possible!)  Otherwise, paying for a policy that is specific to one type of illness or disease is typically not a good use of insurance premiums.
Flight Insurance: Whenever you purchase airplane tickets, you’ll be asked if you would like to purchase additional travel and/or flight insurance designed to pay your beneficiary in the event your plane doesn’t arrive safely to it’s destination.  Check with the credit card you used to book your flight first – chances are it includes complimentary travel insurance.  Also check with your life insurance policy – most cover you even if something happens when you are traveling or flying and will pay your beneficiary based on the policy amount.

Most frequent travelers agree that having travel insurance
to protect you against some of the biggest and most expensive problems of traveling is well worth the time and expense.  Whether traveling for a weekend in the next state over or taking a long distance holiday in another country – having travel insurance can help protect you should the unthinkable happen.

Travel Insurance Basics and Options

Sometimes it makes sense to select the bare minimum in order to save money on things, but travel insurance may not be the expense to skimp on.  The typical travel insurance policy covers basics, including:

• basic medical expenses while traveling
• emergency assistance required while traveling
• lost luggage
• cancellation fees
• accidental death or dismemberment (pays your family like a life insurance policy)

These coverage options are great, and may be covered by the credit card you used to book your flight or travel arrangements.  There are times when you need additional coverage, however, such as when you are traveling with expensive equipment or personal items.  Having coverage for theft of your luggage or personal items can help you if you need to replace stolen items on your trip.

Additional Considerations for Travel Insurance Coverage

Depending where you are traveling, sometimes it makes sense to purchase additional coverage for high-risk locations, extreme sporting adventures, or long term travel are all good options for additional coverage.

High-risk locations: When traveling to war zones or high-risk terrorist activity countries, your standard travel insurance is not likely to include coverage for injuries occurring due to war conditions, coverage for terrorist activities or for emergency evacuation from dangerous places.  If you need to travel in these extreme conditions, you’ll need additional coverage through supplemental policies to make sure you have the coverage you need.

Sports:  If you intend to go mountain biking, water or snow skiing, or sky diving (among other “extreme sports”), your travel insurance is not likely to cover these activities because they result in higher rates of injury and pose a greater risk for the insurance company.

Long term: if you’re traveling for unspecified or long periods of time, you will want to look at long-term travel insurance policies as they are different from the standard coverage.  People going abroad to work or on missionary trips would benefit from long-term policies that cover the entire duration of the trip.  If traveling as a student, there are specific travel insurance policies that offer health care, trip cancellation and other services specific to students.