Types of Life Insurance to Avoid

The main reason you purchase a life insurance policy is so that you and your family are protected from a financial disaster if something unexpected were to happen.  Because it’s so important, we want the best policy available. This usually means the cheapest option with the most perks. But a lot of insurance being sold today is a duplicate of the protection you would get from a simple term life policy. Therefore, there are several types of insurance you should try to avoid.

Credit Line Insurance - This type of life insurance will help pay credit card bills if something were to happen to you. However, keep in mind that the benefits from a term life insurance policy can also be used to make sure those creditors are paid as well as other bills.

Mortgage Life Insurance - With many people buzzing about mortgages, whether they’ve paid too much, or it’s the perfect time to buy with low rates, it’s not no wonder this type of insurance seems appealing. But don’t forget that a term life insurance plan can often do the same thing and usually with lower rates then what mortgage companies are offering.

Air Travel Life Insurance -  Aviatophobia: the fear of flying. What about the fear of overpaying? Even if you fly quite frequently, you still have a greater chance of dying in a Walmart parking lot than in an airplane. A term life policy will cover you whether you die in a plane or a parking lot.

The key lesson here is to do yourself a favor and avoid specialty policies. Often times, coverage is limited and rates are expensive. Term life insurance rates are inexpensive and your loved ones won’t be restricted on how to use the benefit. Making your life insurance policy as simple as possible will bring you peace of mind that your final wishes will be carried out the way you’ve planned.