These days, it seems like every other TV commercial is for yet another insurance product. While consumer choice can be a good thing, not all insurance is as essential as the ads make it seem.
“There’s a lot of sales and marketing based on fear that especially targets retirees,” says Jonathan Howard, a certified financial planner with Accurate Advisory Group, as well as a former insurance salesman. “People end up buying because they’re terrified of a loss rather than to cover an actual insurance need.”
Although Howard believes insurance plays an important role in anyone’s financial plan, some products are more about protecting the insurance company’s bottom line rather than yours. Insurance decisions shouldn’t be made in a vacuum.
They should consider your entire financial picture. That way, you can identify the gaps and figure out the coverage you truly need, along with any you could do without. It’s also important to do an annual insurance review, as certain life events or milestones can change your insurance needs. Above all, never buy insurance hastily based on fear, especially if it involves the products on this list.
