Insurance Coverage You Absolutely Don’t Need

Some kinds of insurance are necessary. The following, however, may not only be unnecessary but downright ridiculous.

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ACCIDENTAL DEATH INSURANCE. Why pay extra for this kind of insurance? Statistically, it is highly unlikely you will die in an accident and even if you do the basic life insurance you carry should be sufficient.

CHILD LIFE INSURANCE. Life insurance should be carried only to the extent that others depend upon the income of the insured, whose early demise will leave those people financially destitute. Children don’t fall into this category unless, of course, your kid is Griffin Gluck. Insuring the lives of children is unnecessary and does not guarantee insurability when the child reaches adulthood as some agents would like you to believe. Actuarially speaking, the chances that your child will die in childhood, leaving you with big burial costs are so small, they’re barely worth talking about and a risk parents should agree to self-insure

TRAVEL INSURANCE. Never purchase this kind of insurance before taking a trip. If in the unlikely event the plane crashes or ship sinks, your family is going to sue. This kind of last minute insurance is costly and a major rip-off. Ditto for trip cancellation insurance.

MORTGAGE INSURANCE. Typically overpriced, mortgage insurance (not to be confused with private mortgage insurance, see below) pays off your remaining mortgage balance in the case of your demise. But who says your spouse or heirs will even want to apply insurance proceeds in that way, if such a thing happens? If you have this type of coverage, they’ll have no choice. Far better to buy regular term life insurance if you feel you need additional coverage. Besides, while your premium on mortgage insurance remains the same, the potential benefit is decreasing every month as you pay down the principal.

PRIVATE MORTGAGE INSURANCE. Also referred to as PMI, this is often required by the lender in a mortgage transaction, to be paid for each month by the borrower. However, the moment it can be canceled (typically once the equity reaches 20 percent) it can and should be canceled. Private mortgage insurance offers no benefit at all for the borrower in a mortgage transaction, even though the borrower must pay the premiums.

EXTENDED WARRANTY COVERAGE. What a waste of money. Modern day appliances are of a quality that the chances of needing repair is remote. And if the item does fail, statistically it will fail during the initial period under the manufacturer’s warranty. Taking your chances is more advisable and cheaper. This is the kind of insurance you should be “self-insuring.” That means instead of buying the coverage, you put that same amount of money into a special holding account (just open a savings account in credit union or bank) to either replace or repair that asset. Then when you have no issues with the item purchased, that money is yours—not lining the pockets of an insurance provider. Extended warranty coverage is a colossal consumer rip-off.

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Please note: I reserve the right to delete comments that are offensive or off-topic.

  • andrea

    I totally disagree with your opinion about trip insurance! I see every day how much having this coverage saves people. There have been so many storms that would have cost people thousands of dollars because they couldn’t get to their destination. Also, take the scenario where a child becomes hospitalized during a vacatio and the family cant return home on their scheduled flight. They have airline change fees, extra lidging, food and other expenses that this insurance covers.

    • Mary Hunt

      Andrea … I think if you knew of the specifics you’d discover it is not easy to get a claim approved on trip insurance. It is designed to be unfriendly when it comes to actually using it. The fine print would be funny if not pathetically sad. As one reader just posted to our FB page, “I’m the the type of person that reads all the fine print and it is a total waste of money!!! For you to even file a claim, there must must multiple circumstances going on at the same time like: If there is a FEDERALLY DECLARED natural disaster AND your home is uninhabitable AND you lost a foot AND all your relatives are dead AND it happened on a Thursday AND you can prove it, then maybe you have a claim and can collect $200 when you pass GO.” I couldn’t have said it better.

      I stand by my advice.

      • andrea

        Oh my dear, I DO know of the specifics as I work in the industry and can share TONS of stories of how people have been saved thousands by having this coverage. I have a front row seat to see this first hand and it is heartwarming to see people being protected from great loss. You obviously have not been in a position to see such and it upsets me that you are giving such poor advice! It isn’t as difficult in most cases to file and be reimbursed as what you claim. But after reading all the examples that people have given of how they were helped, you still sit back and claim that “you know best” about this and how it is a waste of money. I’m starting to doubt that you would ever admit to being wrong about something. How many people will be harmed by believing this “tip” of yours??? Does that even bother you? Your suggestion of taking that money you would pay in premiums and put in the bank is ridiculous! It could never even touch the cost of what it would cost someone to pay for being flown off a cruise ship! I have been involved in the travel industry for almost 30 years and seen the joy of hundreds of claims filed and processed, and also the heartbreak of people who refused coverage and had great loss. I’ve also experienced people who refused coverage in writing get angry when they had a loss and then expected me to get their money back for them after having full disclosure of what was at risk. I am sure they would also beg to differ with your advice on this issue. You seriously need to talk to more professionals that have a front row seat to all the things that go wrong and have to deal with this on a daily basis. But again, I don’t think you would ever own that maybe you offered the advice incorrectly or too hastily.

        • Kim

          Andrea, if you’ve been in “the industry” long enough, then you must also know some stories about people who did buy trip cancellation insurance, filed a claim, and didn’t get their money back because they didn’t check a box or cross a t on their form, or they filled it out with the wrong colour of ink. I know that stories like this exist, I’ve certainly heard enough.

          • andrea

            I actually have never seen what you are referring to Kim. I have seen a claim denied because someone didn’t disclose a preexisting condition that they were told before purchase that a preexisting condition would not be covered on that particular company. A lot of times people bash companies but fail to disclose their own stupidity. Again, I have seen so much good come out of having insurance! Especially in the case of a client who had a hear attack on a ship that had to be evacuated off the ship while at sea. How would you like to pay a $25,000.00 bill for this service? It was a good thing they had insurance.

          • andrea

            I meant heart attack.

      • Kim

        Most insurance companies design their policies so it’s hard for their customers to make a claim, don’t they? Your post reminded me why I have never bought trip cancellation insurance in my whole life. Because I read the fine print.

        • andrea

          Your response shows that you DID NOT read what I wrote. The client was advised that the company that THEY chose to go with denied preexisting conditions but the bought it anyways, knowing there was a preexisting condition!!!! They were offered a more expensive coverage that it WAS included, but they turned it down as the premium was a little higher. How insane given the fact that they knew of the preexisting coverage, but not disclose that it was there, Then when the medical reports were sent from the physician, the claim was denied. It was THEIR own fault because they tried something stupid, but could have been covered had they purchased the other policy. In all my years in the industry, I have only seen ONE claim denied!!!!!! And it was the one I just referred to. All the others were paid without a problem. I don’t understand why you keep talking about the policies being built to keep you from filing a claim. Kim, you are a hard head that will never listen to reason on this issue. One day it could be YOU or a loved one who has an incident with no coverage for a very expensive event. Good luck!!

  • Sharron

    Just a heads up, if you have an FHA mortgage, you can’t cancel PMI insurance at all. It is required for the life of the loan. We found that out the hard way, but was grateful to be able to have an option to buy a home. Thankfully, we were able to pay it off a couple years back and are FREE!!!!!!!!

    • Mary Hunt

      FHA loans don’t have private mortgage insurance. Instead, the loans carry a government guarantee and you pay a mortgage insurance premium for that guarantee.

      The premium is typically paid in two parts: an upfront mortgage premium paid at settlement equal to 1.75 percent of the loan amount for a new loan (1.5 percent for a streamlined refinancing), which can be added to the loan amount; and an annual premium of 0.5 percent to 0.55 percent spread out over the year and paid with your monthly mortgage payment. Fifteen-year mortgages have lower annual premiums.

      Wow … couple of years to owning the house outright? Fabulous!

  • Joan

    There are a few instances where some of these “unnecessary” insurances actually can be beneficial. As a single mom, I purchased a $3,000 child life insurance policy for $125 when my son was an infant. It protected him until age 21. My budget was tight, and I could not have afforded to pay funeral expenses if the unthinkable occurred. When he grew up, he joined the army and invited me to visit him in Colorado Springs. I lived in New York, so this was a cross-country flight that I booked two months ahead of time to get the best price. I purchased travel cancellation insurance for $15 because there was a possibility that he might be deployed before our visit date. Thankfully he was not and we had a great visit. In both instances the few dollars spent purchased peace of mind. Several years ago I purchased a high efficiency top-loading washer and dryer for $1,400. The washer used so little water that some clothes didn’t even get wet and came out as dirty as they went in. Two sets of towels were ruined by a funky odor that I could not get out even with repeated vinegar rinses. I finally sold the pair and bought a traditional agitator washer and matching dryer that were not high efficiency. My clothes and towels come out clean and smell fresh, and my water and electric bills actually went DOWN! The salesman at Lowe’s told me that if I had purchased an extended warranty for about $175 on the original pair, I would have been able to exchange them, no questions asked, for a different brand and model anytime during the first 3 years. Instead, I had to eat the loss when I sold the “stinkers” for only $300 and purchased my new washer and dryer for $800. You can bet I paid for that extended warranty this time. I don’t know if stores other than Lowe’s offer this exchange provision, but I think if you can get it, it is money well spent for peace of mind.

    • rondavue66

      Lowe’s would not have allowed you trade them in with a warranty. The warranty is not used for that. He just told you that hoping you’d fall for it and buy one and foolishly you did. Waste of money..Seems to me you like to waste money on things. Your flight to see your son would have been cheaper the closer to the date unless it was a holiday. Research your options beforehand and stop wasting money on stuff…

      • Shirley

        Sheesh, why judge her? You dont know her circumstances in ANY instance. You sound like a Monday morning quarterback….

    • Mary Hunt

      Joan … I understand your thinking, but have you considered that $125 x 21 = $2,625. Had you put those annual premiums into the bank instead of the insurance company’s pockets, you would have had a nice nestegg to pay for those trips to visit your son. And you could have added the $15 trip cancellation insurance. By the way, did you read the fine print on the trip insurance? Simply having his plans change would not have likely benefited you at all. The fine print is very narrow in most cases.

      As for your appliances, did the salesman for the new set of appliances he mention anything about the warranty that came with those appliances? Most are covered for 3 years for manufacturing defects, which is sounds like you had. I would bet you had all the “insurance” you needed right there in the warranty.

      Millions of people buying child life insurance that is never used, is the reason they can exist and and quite a profit. I am just saying that statisticlally, your son would not die in childhood. That’s an instance that self-insuring is a wise move. I stand by my advice on insurance you do not need because it is a waste of money in nearly every situation.

      All that to say, congrats on your son’s accomplishments!

      • Joan

        The $125 was a one-time premium which purchased the $3,000 insurance for 21 years, not an annual premium. The LG washer and dryer were covered by a one-year manufacturer’s warranty which turned out to be worthless. Every time I called, LG said the washer was working correctly; it was the consumer that had to get used to the lower water levels. When I told them the clothes were coming out dry and dirty, they said the machine spun so fast that it only made the clothes seem dry. Of course they couldn’t account for mud and other soils left on the clothes. My washer model had a glass top so we could watch during the entire wash cycle and we saw the clothes were not getting wet. At that point LG said there was nothing more they could do. They never sent a repairman out to look at it, saying the washer did not need repair. Before I purchased the warranty from Lowe’s on the new unit, I read it through carefully twice, and also asked someone else to read it. It does say they will replace it for any reason within the warranty period for the same brand or other brand of the consumer’s choice that is a comparable price.

  • Arlene

    There are times that these warranties really pay off and I guess I have been fortunate. Bought a used car with an after market waranty ($1800) cost the warranty company over $9000 by the time I got rid of that bucket of bolts. I could never have afforded those expenses (then or now) and I needed a car. (the previous one was stolen) I currently own a large SUV with a lot of electrical equipment, am on my second after market because the first one paid off to repair a power roof. (over $2000) The second one is not yet a year old and has replaced a dashboard ($1200) and an engine sensor ($500) and has three years left to run. And I have a brand new fridge, good brand , not cheap that I didnt buy a warranty for and NOONE can fix its ice maker. My fault! Should have bought a warranty on that one…..they dont make them like they used to!

    • Mary Hunt

      Arlene, your situation is such an isolated one, it does not warrant me suggestion that everyone always purchase extended warranty protection. $1,800 is a gigantic premium! Just multiply that by say 100 cars that dealer sold in one month with a big warranty like that. They can only do this because of actuarials and statistics. All you have to do is research how insurnace companies work and how they stay in business! Sorry you were the one case, but happy you were covered.

      Now think about the other 99. They would have been better off putting thd $1,800 into their own emergency fund.

      Nothing in life is for sure. No one can afford to insure for every possible eventuality. The people most like to pay for extended warranty insurance, trip insurance, life insurance for children, are those who have $0 in the bank—no savings, no fallback. They buy these coverages out of fear. Money in the bank changes everything—it takes care of that fear and allows for more clear thinking.

      I stand by my advice.

      • Sonia g

        What if you have no insurance AND no money in the bank?

  • Sandra

    Had it not been for travel insurance, I would have lost thousands and thousands of dollars. My husband and I were headed to Paris, hotels, and a EuroRail Pass to see Europe. Less than two weeks before our departure, we found out he had Stage 3 cancer. He died the next year and it was only then I was able to tend to reimbursement but every penny was reimbursed. Travel Insurance is well worth the expense; not only due to illness, death but also storms and other “acts of God”. When traveling by air, I always purchase “cancel for any reason” travel insurance. If I get up and don’t feel like going, I can file paperwork and my money is reimbursed. It’s more likely I would get up and a family member is ill or my farm sitter has an emergency…with “cancel for any reason” travel insurance, my money is always refunded. I don’t have so much money I can afford to NOT pay travel insurance and buy insurance on major appliances as well. It’s part of good stewardship.

    • Mary Hunt

      Sandra I am so sorry to hear of your loss. I cannot imagine what you have been through. Still, your situation is like one in a million. Statistically, for you to have collected (and I am happy you were able to do that), untold thousands of people paid a lot of money to make it possible for the insurance company to even be in business to pay you.

      I stand by my advice.

      Now, I suggest you read carefully the fine print of even “for any reason” trip insurance. And ask you to reconsider by putting that same amount of the premium into a special savings account. Then check back in 5 years to let us know how big your nestegg is.

  • Kathy Glaser

    I also disagree on trip cancelation insurance. I have health issues that have prevented me from taking trips I’ve booked. Without the insurance, I would have been out a couple thousand dollars. It was well worth the small price.

    • Mary Hunt

      Kathy, with all due respect the fact that you have health issues suggests you are not average. You have special issues so of course you need to take special precautions. I am not sure that trip insurance is your best option, but even so, your situation is unusual. Most people do not have health issues.

  • Guest

    People may not realize that many US health insurance policies do not cover medical expenses incurred outside the United States, so anyone planning a trip abroad, should definitely check with their health insurer to see whether or not their policy will cover medical treatment they may need as a result of an accident or health emergency while in the country they are planning to visit. Some will provide this extra coverage, for an extra fee. Otherwise, you may want to look into the kind of trip insurance that includes this type of coverage. The last thing you want is to come home from a ruined vacation burdened by thousands of dollars of debt for emergency room, hospital and doctor services.

    • Emjay

      So true! While in Peru, the gov’t required that our group purchase medical insurance. Before we were all home, all but 3 or our 12 used that insurance. Turns out, it was a variety of ailments, but one person even spent time in the hospital for a flu-like tenure. Because of that insurance, all meds and care were taken care of.

      • Mary Hunt

        Again, the advice in the column is regarding trip insurance, not medical insurance. They are not the same in any way.

  • Bronson Beisel

    I have always wondered about the “Medical Payments to $5000” coverage that is part of my auto insurance. Is this really necessary? I’ve never been able to get a straight answer, but what I do hear is that this pays out immediately in the event of an accident. Granted, we have regular health insurance, but some people tell me this is nice extra supplemental coverage. Seems like a lot to pay for $5000 in coverage. We pay roughly $90 a year for this coverage for three cars in the family. I know it’s not much in the grand scheme, but I wonder if it’s just “pure profit” for the auto insurers. Thoughts?

    • Mary Hunt

      If you and your family members are properly covered with health insurance, you don’t need this. It is duplicate insurance and not likely to cover your out of pocket expenses as you would expect duplicate insurance to operate. However, if you are drive with passengers who are not family (school carpool, etc) and you are in and accident where you are at fault or hit by an uninsured or underinsured person (quite common these days), and you have a passenger who does not have health insurance or is poorly covered, you could be liable for that. I’d check with your insurance carrier to find out the exact details on this up to $5,000 coverage. Then make a wise decision to either drop it or beef it up according to your exposure to loss.

    • sadnana

      Years ago I was involved in an auto accident that was the fault of another driver. My insurer at the time was very good about paying for my car repairs. But trying to collect on the other benefits of my policy was like pulling teeth. At the time both medical and disability benefits were included in that policy but getting my insurer to pay those benefits was very difficult. My group health and disability insurer through my employer had no problem paying the benefits to which I was entitled under their plan, but I was never able to collect any disability benefits under my auto policy and next to nothing was paid for my medical bills. My insurer at the time was a large, highly rated, nationally known corporation so they had no excuse. Ironically my work at the time was as an insurance claims adjustor so I knew how to submit the claims and shepherd the process. But in the end the insurer simply refused to pay and I was too exhausted by my medical issues to pursue it.

      After that I was very careful not to pay for either supplemental medical or disability benefits on my auto policy.

  • Gail

    Fairly new to the travel industry – but part of a large organization and several travel forums, and your suggestion to not buy travel insurance is very, very poor advice. ESPECIALLY traveling to another country. I never used to buy the insurance before I became aware of its importance. If you cannot go on your trip for a multitude of reasons – would you really want to pay for a trip you didn’t take?! If god forbid you broke your leg while at port and missed your cruise – how would you pay for both the medical attention and getting back home?! I see posts every week from agents around their clients that decided to not buy insurance, or thank goodness they did buy it because a seemingly small accident somewhere else can result is a lot of $$$ for many reasons. Or not so small ‘event” somewhere else can amount to an enormous amount of money.

  • Stephen

    I realize when you say never purchase travel insurance you are actually talking about the life insurance policies the airlines offer, but not everyone knows this. It’s really bad advice to tell someone to never purchase travel insurance to cover the cost of a trip they may not take because of illness, weather or work and then lose $1,000 or more for a trip they can’t take. Besides that what’s $100 for a family of 3 for a trip that cost them over $2,000 just because dad’s employer put a vacation freeze on all employees or because little sally just came down with the flu and can’t travel?

    • Kim

      Travel insurance is not the end all, be all miracle insurance that some think it is. I’ve heard enough horror stories about this one to know that reading the fine print is always a good idea.

      • Stephen

        It’s a good idea to read the fine print of any contract, but to make a general statement that it’s a complete ripoff is like saying planes crash so don’t get on one because they’re not safe. I’ve had some really good travel insurance that have paid full value and on time without any hassle and I’ve had some that are not worth the paper they are written on.

    • Shirley

      I also disagree with “never buy travel insurance.” A friend was on a trip to Egypt and her knee gave out. SInce she had purchased travel insurance every penny of her medical expenses was paid in Masada, then Cairo PLUS she had the benefit of a travel nurse(b/c she could not walk without help) accompany her to the US to her bed in a transitional care skilled nursing facility. WELL worth the couple hundred dollars. She would STILL be payng those medical bills… I DO agree if you are getting it b.c you might die on the plane-not a reason to get it.

  • Vanessa Khoo

    there’s a bit more to travel insurance than merely covering the cost of a cancelled trip. i agree [mostly] with the saying “if you can’t afford travel insurance, you can’t afford to travel.” every policy is different so you need to go over it very carefully and see what it does and doesn’t cover. travel insurance isn’t something to be so casually dismissed, nor should you leave it to “the last minute.” as soon as you start thinking about a trip you should investigate insurance options.

    • Mary Hunt

      Domestic travel is a situation that you should always self-insure. Everyone reading this needs a personal emergency fund, which we call a Contingency Fund! People who are terrified to travel without insurance are most likely on the edge, paycheck to paycheck and living in fear. That’s no way to live.

      • Vanessa Khoo

        agree on the domestic travel bit. but even then, surprise expenses can pop up. again i reiterate my earlier point about investigating different types of cover and only getting what you need. and i wouldn’t generalise about people who get travel insurance. just a few years ago, i travelled a few times overseas without travel insurance. i’m lucky nothing happened but a hospitalisation in a foreign country has the potential to drain most people’s “contingency funds.” with the economy the way it is and job security being pretty much an oxymoron people have to be careful. call it fear if you like, but one should never become complacent about their financial situation

      • andrea

        That sounds like an arrogant answer and not true at all! Many of the people that I see purchase insurance are very wealthy and are that way because of intelligent decisions! If you are buying a 10,000.00 domestic trip that is nonrefundable, a 55.00 premium is very reasonable.

  • Mimi

    I agree. You need travel insurance but do not buy thru the cruise line. They will not give you 100% of your money back. They will give you a credit toward another cruise. The night before we were to go on a cruise, my married son called and said they just found a tumor on his kidney. Long story short, we canceled the cruise, his kidney was removed that week, and we received every penny back with no hassle. If you are going to a foreign country, you definitely need it. In the U.S., maybe not. But the cost of the insurance is very reasonable.

    • Mary Hunt

      If trip insurance premium is “reasonable” you know you have a very poor policy with so many exclusions and requirements in the fine print, it will be virtually impossible to ever collect on it. Travel medical insurance? Not so bad, but much much more expensive. You were fortunate, Mimi. Again the cost is not in my opinion, reasonable.

  • SaveYourself

    My Mom-In-Law had Accidental Death Insurance. She broke her leg coming out of a restaurant, passed away two days later from a blood clot. Her accidental insurance would not cover because technically she didn’t die from the broken leg. We did receive the premiums she had paid in, which amounted to nothing. Absolutely worthless insurance!

  • crabbyoldlady

    Another voice for the travel insurance. We travel to Europe after saving for 2 or 3 years. If one of us falls ill, that 2 or 3 hundred dollars will be money well spent to avoid losing possibly 8,000 or more. Always look for inclusive travel insurance that covers flight and hotel.

    • Mary Hunt

      I stand by my advice. I so disagree, and hope you will reconsider putting those same funds into a travel emergency fund of your own. Check back in 10 years and I’ll bet that you have a nice little nestegg of money you didn’t toss away. Love your name by the way 🙂

      • Vanessa Khoo

        that’s all well and good if you only travel overseas every 10 years. but no one can ever predict what those medical bills can amount to. isn’t that the same reason why health insurance is considered necessary? the medical component is the most important part of travel insurance. i generally despise insurance but some types are simply necessary, not just for peace of mind but for peace of wallet.

  • JuanitaS

    I agree with Sandra about some travel insurance. My sister died unexpectedly while I was on vacation a couple of years ago and I had to leave to get back home. The travel insurance refunded every dime. The $47 dollars I paid for the insurance was well worth not losing the $1,000 I paid for the rental. Before then, I did not purchase travel insurance but I will from now on if I go on vacation again.

    • Mary Hunt

      So sorry to hear of your loss. Wow, that is just horrible to even think about. However your situation is so isolated, in my opinion it does not warrant everyone else reading this to buy trip insurance. Everyone should have at least $1,000 in an emergency fund to self-insure in this kind of situation. Everyone.

      • Sharon Campbell

        Mary, you have your opinion. A lot of your readers have their experiences. Not everyone has the emergency fund, there are many situations that can make the travel insurance necessary, and we live in an unstable world political situation. Yes, people need to check the policy out carefully. And choose the issuer carefully. But it can be cheap peace of mind for many.

      • Sonia g

        You are incredibly cold hearted
        And I cannot believe you mod your own comments.
        I know this will be deleted. But your advice is whats generalised, and its the people who have the specifics. We may not ALL have health problems, we may not ALL have a family member get ill/pass away. But the fact is. Something is almost bound to go wrong if you DONT have insurance. Be it life, car, child, travel, medical whatever. And it should be a case of “each to their own” not you policing everyones posts and belittleing their needs.
        Rude much?

  • Sue Fornoff

    I also disagree about travel insurance. I live full time in Mexico and have encountered many travelers who have used it, and many who wished they had purchased it.
    Of course there are thousands of people who don’t buy it, don’t need it and are very happy. Most people don’t travel often enough to have put aside a contingency fund for travel emergencies. The relatively small amount they pay on their trip of the year (or decade) provides peace of mind and like most insurance, you are happy when you DON’T need it.

    • Mary Hunt

      Trip insurance is fraught with exclusions and conditions. These folks you speak of generally, do you have specifics?

      I stand by my advice.

      • Sue Fornoff

        I have one friend who travels yearly from Dallas TX to Puerto Vallarta, Mexico for up to 6 weeks at a time. She has had several medical issues here in Mexico (pink eye, bronchitis) which the care has been totally paid by her travel insurance.
        Then this year, she badly broke her ankle in Dallas and had to cancel a trip to Mexico. She says the insurance reimbursed her expenses.
        Another friend slipped on a rug in Singapore, and broke a hip. She said the insurance paid for the medical bills, the change in her travel plans, the extra hotel expense.
        Personally I have only 1 trip bought travel insurance. Because we had several airlines, a 2 week safari and many extra details we felt it was wise to have insurance. We didn’t use it. (yay!) Other travel we “self insure”, our medical insurance covers us everywhere.

  • DK

    Just as the warranty was about to expire on a refrigerator I had purchased, the company called to try to sell me an extended warranty. The salesman tried and tried. I finally told him I seemed to have more confidence in the product than he did!!

  • Debbie

    I think travel insurance is very important for trips where you are going to be in the middle of no-where. I have been on many trips where I am hiking or on roughing it types of adventures and if I or my husband had had a problem the only way we could have made it to a hospital is via air-lift. Thankfully we’ve never needed to use this quick mode of transport to civilization but if we had, we definitely had insurance to cover it. This is one type of expense no one wants to have to pay so travel insurance is definitely important to have.

    • Vanessa Khoo

      or even in developed countries like Germany and Singapore where the quality of treatment is very high but also very expensive. it simply isn’t worth the risk of draining one’s contingency fund just to save a few hundred dollars

  • Joshua Newsome

    The following statement is false: “Insuring the lives of children is unnecessary and does
    not guarantee insurability when the child reaches adulthood as some
    agents would like you to believe.” If your child passes away, you would have to cover costs associated with that, correct? Our company guarantees insurability regardless of changes in medical history at an amount five times greater than that of the original face amount upon conversion from a child rider to a personal policy.

  • Joshua Newsome

    The following quote is incorrect: “Insuring the lives of children is unnecessary and does
    not guarantee insurability when the child reaches adulthood as some
    agents would like you to believe.” If one’s child were to pass away, one would have to cover the expenses associated with that loss right? My company guarantees insurability regardless of changes in medical history at five times the amount of the original face amount upon conversion from a child rider to a personal policy. What about this comment is off topic/offensive?

    • Sharon Campbell

      And THAT is why it is cheap peace of mind. If your child develops some condition that makes her/him uninsurable, that will be the ONLY life insurance that will be available for the rest of their life. And it does happen.

    • susang

      I totally agree with the idea of having life insurance policies for my kids. Just in case they were to get sick or to die in a car accident, I wouldn’t have the thousands necessary for the funeral. It is worth my peace of mind.

  • NJ

    When making your next major appliance purchase check first with your credit card company, many double the manufacturers warranty.

  • Julia

    I am with Sandra. I am medicare eligible and medicare will not cover medical emergencies abroad. Further, with the rise of terrorism, emergency evacuation might be necessary and would be covered by travel insurance. i do not book any travel abroad without it.

  • Kiki

    I always purchase travel insurance when I travel. It has saved me thousands in rebooking or flight change fees, hotel rooms, lost luggage purchases, cancellation of trip due to illness or emergency. Sometimes peace of mind is worth the $19-$39 I have paid for this insurance. And having been medevac’d home from a trip, been injured abroad, had strep throat which caused me to cancel my trip 1 day before going to present my master’s degree and had each of those trips paid back to me in full was a good financial decision not a poor one. Without that insurance I would have been responsible for those payments to rebook, cancel, pay for hotel etc.

  • P Keenan

    I always purchase travel insurance. A friend last year had a unexpected death in family in australia – they were on a tour in ireland and insurance not only covered their costs to get them back to New Zealand but also got refunds for six weeks of their tour not completed. no insurance they would have been sunk and having to spend up to $5000 NZD to fly two people dublin to auckland plus all the lost tour fees.
    never purchased mortgage insurance beyond the necessity to do with mortgage payment and have small life policy to cover burial costs. don’t need to leave any money to my family – i earned it i spend it.

  • Sonia g

    You are incredibly cold hearted
    And I cannot believe you mod your own comments.
    I know this will be deleted. But your advice is whats generalised, and its the people who have the specifics. We may not ALL have health problems, we may not ALL have a family member get ill/pass away. But the fact is. Something is almost bound to go wrong if you DONT have insurance. Be it life, car, child, travel, medical whatever. And it should be a case of “each to their own” not you policing everyones posts and belittleing their needs.
    Rude much?

  • More Mocha

    What about buying extra car warranty coverage on a used car? . Is that a waste of money also?

  • Sonia g

    You are incredibly cold hearted
    And I cannot believe you mod your own comments.
    I know this will be deleted. But your advice is whats generalised, and its the people who have the specifics. We may not ALL have health problems, we may not ALL have a family member get ill/pass away. But the fact is. Something is almost bound to go wrong if you DONT have insurance. Be it life, car, child, travel, medical whatever. And it should be a case of “each to their own” not you policing everyones posts and belittleing their needs.
    Rude much?

  • Magdalene

    What do you think of this? We just received a notice from our electricity provider encouraging us to buy a ‘ Exterior Electrical Line Protection Plan” for $5.49 tacked onto our monthly electric bill. With it came a list of exterior problems that we would be responsible for if they happened. I always thought that exterior lines were maintained by the electric company. Has this changed?

  • sadnana

    No one wants to think about the possibility that their child will die. But I was recently reminded that a small life insurance policy on a child can be a tremendous relief to a grieving family. It would be nice to think that every parent has the thousands of dollars it costs to bury someone but that is often not the case. Even a modest service and “frugal” burial can be beyond the ability of some families to pay. And since it costs so little to buy enough term life insurance to pay funeral expenses, say $5,000 or $10,000, I consider it money well spent. $5000 of coverage can be purchased for about $3.00 per month for a child under 16, a very small price indeed to pay for peace of mind.