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Along with taxes, insurance can feel like a necessary evil, that even when money is tight, we have to shed out for… however, it does raise the question whether certain types of insurance are something we could live without. This article looks at a number of different types of insurance that we could perhaps live without, in order to assess the real value of paying that monthly premium, in terms of considering the likely return on investment and gauging whether the myriad of insurance products available are unnecessary expenses you could live without.
Before going into the different types of insurance however, you might want to read here to get a feel for what an insurance comparison website is, as these comparison sites and aggregators tend to offer much better value – as they compare a wide variety of options from many different companies, resulting in a much more competitive quote.
The main disadvantage of life insurance is that you will forego some money in the present, in order to cover policy premiums, that won’t be paid out until you die. Life insurance, therefore could be said to not provide much tangible benefit to you as an individual when compared with something like travel insurance… but it does provide the peace of mind that in the inevitable event of your death, your loved ones, will have a cash payment to help look after them once you’re gone.
Life Insurance is an interesting concept, as insurers tend to like to insure against risks that may happen; rather than will definitely happen. Insurance companies are in the business of making money, and one could argue, their business model is flawed… which is when we must look to the fact insurance companies are known for trying to wriggle out of paying claims; which can be an incredibly stressful ordeal to have to battle through at such a vulnerable time.
Some view life insurance as being akin to an investment that pays out upon death – but if that’s the case why not just pay a weekly amount into a bucket of cash kept under the bed and let your loved one know where it’s stashed! Aside from the obvious tax evasion issues, the main benefit of life insurance, is that it covers you in the event of your death irrespective of age; meaning from a purely financial perspective, it can offer a decent return on investment.
In summary, life insurance doesn’t have any direct financial benefit to you as an individual but it will benefit your family in the event of your death; just be sure to go with an insurer that covers a wide variety of risks and check the small print, so that in the event of your death, your loved ones aren’t confronted with an insurance battle.
A very popular, yet surprisingly expensive form of insurance today is gadget insurance which is becoming increasingly necessary as we collect more and more gadgets in the form of smartphones, tablets, and laptops. We take these items everywhere we go and have this innate yet somewhat misplaced trust, that nothing bad can happen to the lifeline that is our mobile device. Yet, all it takes is an accidental spillage whilst eating lunch at your office, a quick sleight of hand on a busy train, or a sudden drop to the ground and your precious.
The majority of gadget insurance covers against most risks and provides much-needed peace of mind. That said, when someone loses their gadget, it’s often not the gadget itself they are most upset about – it’s the data, and most the time insurance companies are unable to recover data that hasn’t been backed up. The best type of insurance for this is regular back-ups to the cloud so that even if you lose your piece possession, the data, that is often much more valuable and far less replaceable will at least be able to be recovered with ease.
As with most insurance policies, you’ll want to read the small print and check the significant exclusions as terms such as theft from an unattended vehicle where the item was left on display might not be covered. Another thing to consider is that your home insurance policy might already provide adequate cover for your gadgets, both at home and abroad.
If we thought we were going to have an accident or get seriously unwell whilst on holiday abroad, we would probably cut our losses and stay at home – where we could receive the treatment necessary without any further risk.
There is often a slight sense of denial when it comes thinking about having an accident abroad, unless we are doing something like whitewater rafting or skiing, there’s an assumption that you’ll be living your normal daily life just in a different country, and what’s the worst that can happen! However, Murphy’s Law has a funny way of causing accidents and illness at the very time we are wanting to enjoy our holiday and at a time we don’t have the healthcare privileges of our home country.
When you consider the prospect of breaking your ankle whilst walking on a remote mountain range, you can see how quickly the costs would spiral out of control – from the cost of dispatching the helicopter to the specialist treatment required in the hospital; now imagine it was something requiring life-saving surgery such as a car crash.
Your health is your most valuable asset, as without it, all the money in the world won’t make any difference – so out of all the insurance policies to consider taking out, a decent travel insurance policy is a wise investment. However, don’t fall for the false economy of cheap policies that have so many exclusions you would be lucky to have a claim honoured; particularly be careful with looking out for terms that exclude claims made as a result of an act of terrorism, and be sure to check the activities you wish to undertake on your trip are covered – as most won’t cover exciting things like whitewater rafting, and some won’t even cover relatively low-risk activities like bodyboarding.
In summary, if money is tight, and you are thinking of cutting back on your monthly outgoings – these are.