NEW YORK (MONEY Magazine) -
The world's a scary place, but a file full of insurance policies won't necessarily make you and your family safer. Only five types of insurance are critical: health, disability (if you're working), life (if you have others who depend on your salary), homeowners and auto.
Solution: Insure against the big stuff only.
Much of the rest you can skip. Don't buy insurance for something you could cover out of pocket. You can say no to credit life insurance -- buy more life insurance to cover your debts instead.
Your auto policy or your credit card will usually cover car rentals. Your children don't need life insurance unless they help support you. Travel insurance may be a good idea if you're headed to a country with inadequate medical facilities, but flight insurance is simply overpriced life insurance.
And most people should not even think of long-term-care insurance until age 60. Once you're down to the five key policies, consider consolidating some of your business. You may be able to save 5 to 15 percent by using the same provider for home and auto.
Investment: An hour to ensure you have essential coverage; one minute to turn down other pitches.
The payoff: Less paperwork, plenty of protection
Problem 9: Too many funds.
|
