Money Talks News: Bad insurance buys

Money Talks News - Insurance for your car, home and health are essential. Life's simply too risky without them.

But that doesn't mean you should just blindly buy anything with the word insurance written on it. Some insurance policies aren't worth the money. H

Identity theft insurance is important because it covers your out of pocket cost in the case of ID theft, but there's not that much out of pocket expense to cover. There is a more conducive option; put a fraud alert on your credit file and monitor your credit carefully.

And there is credit life insurance. This is insurance tied to a specific debt like maybe a mortgage or a credit card balance. It pays off if you die. Better bet though? Just regular term life insurance.

Then there's travel insurance. Sometimes these policies make sense, but some are so full of exclusions they're not worth the paper they're printed on. You've really got to read the fine print on this one. Alternative? See what protection your credit cards offer.

And what about dental insurance. It can cost hundreds per year, but the max benefit is often capped: the cost/benefit just may not be there. You might be better off with a discount plan and less expensive care, like at a dental school.

Finally, life insurance on your children. Unless your kids are breadwinners, they don't need insurance. Open a savings or investment account for them instead.

Insurance is about dealing with financial catastrophe, not the inconvenience. So some policies simply aren't worth the money.

There are more you should know about and they're listed at the Money Talks News Website. Just do a search for "bad insurance."

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