Insurance companies are always trying to sell you coverage, some of which you may not need. This coverage runs the gamut from health insurance, to disability to car insurance. Before buying insurance, do research to make sure you really need to purchase the policy or insurance.
One such policy that you may not need to purchase is vision insurance. Insurance companies try to convince you that you need this policy, however many health insurance plans cover ophthalmologists. Some health insurance plans require a referral to an ophthalmologist, as he is a specialist. Other plans let you self refer. If your health insurance covers a specialist, a vision policy may not be for you. Corrective aids, such as eyeglasses and contact lens generally aren’t covered on a health insurance policy. However, many vendors have special rates on glasses, especially at the beginning of a school year. Do a financial analysis and see if the cost of vision insurances worth it. For example, my vision insurance costs $40 per month. That amounts to $480 a year. Only 2 family members need vision services. Both of us can see an ophthalmologist, at $25 per visit. Generic glasses at a en eyeglass vendor generally cost about $90. Glasses will probably be purchased once every 2 years. So the yearly cost for not having vision insurance would cost $140 . Versus $480, this is a savings. On the other hand, if you have a large family, or need frequent prescription changes, vision insurance might be for you.
Another insurance policy that should require careful consideration before purchasing is disability insurance. Some policies offer coverage within a short period of time, after being disabled. Others require a lengthier period of being off of work before coverage begins. If the individual being covered is young, chances are the policy will not be used. Also, if the individual has a pre-existing condition, the policy may not provide coverage, or may not pick up the disability for a specified period of time. In addition, most disability policies only cover a portion of the lost income. The more income the insured person wishes to replace, the more expensive the policy will be. All of these things need to be considered before deciding if disability insurance is right for you. Sometimes, the cost is not worth it.
Many insurance companies try to sell employees cancer insurance. Our society seems to have a fear of cancer, almost a phobia. Most people will never get cancer, so they have paid for a policy they will never use. The younger a person, the less chances of getting cancer. Also, some policies have disclaimers and conditions written into the policy, resulting in limited coverage. If a person is older or has a family history of cancer, a caner policy might be in order. If you do need cancer coverage, research the benefits and disclaimers on each policy to select the best policy for you.
Comprehensive Car Insurance Coverage
Many people, especially the elderly, believe in having their cars insured to the maximum. My parents are an example. They drive a beautiful, almost perfect condition 1995 Cadillac. Their idea is that comprehensive insurance will replace the value of the car. What they don’t realize is the value is based on the Blue Book value. What they have paid out for 15 years is probably not equal to what they would receive if the car was totaled. If you have a title to your car, and it is an older model, comprehensive car insurance might not be your best option. Some people take the difference between basic car insurance coverage and carrying comprehensive, and put the money in the bank as a down payment for their next car. This seems a wiser choice to me.
There are other insurance policies that may not be wroth the financial cost. Before deciding if a policy is right for you, compare the costs, and the benefits of the policies. Insurance is necessary evil, but there is such a a thing as being too insured.