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.