5 Insurance Plans You Should Avoid | Never take these 5 insurances


Friends, we all should buy insurance and we all know that especially life insurance, health insurance and motor insurance are mandatory. But apart from these 3 important insurance plans, many other insurance plans are sold to us unnecessarily but we can avoid them.

Why pay premium unnecessarily then we are going to talk about 5 such insurance plans which we should avoid. can also be saved. This article is going to be interesting, stay tuned!

Home Loan Insurance

The first insurance that we should avoid is home loan insurance Look, when people buy a house, many people take a home loan for that. People ignore that. When we get the loan sanction letter, an insurance premium is also added to it.

Normally, we don’t pay attention to that component. This component is added to your EMI, so in a way you are getting the premium of this insurance in the form of loan, then you are paying interest on it. So according to me there is no such benefit of this insurance and we can definitely avoid it.

Why avoid Home Loan Insurance?

Let me tell you why look, why are we buying or why is the bank selling home loan insurance? The main objective of the bank is, if so, in that case. When the home loan borrower dies, they can make easy recovery. On the other hand, the objective of the borrower is not to inflict the liabilities on his family. The motive of both is settled! But we are getting this insurance expensive, it can also be solved with term insurance, see our motive, in case of all incidents if someone’s life is at risk.

Never take these 5 insurances

And if that person dies due to some reason then you get all these covers in term insurance. Term insurance is already the cheapest insurance and that is probably why sellers sell it for less. So we have to see our own benefit and our advantage is the means to increase term insurance.

Whenever we are buying home loan or increasing our liability or taking any type of loan The portion which is increasing in our liability, we can increase the same portion in our term cover that means, either we can buy an additional term policy or we can increase the cover of our existing sting term insurance.

Flight insurance

Another type of insurance that we should avoid is flight insurance. Whenever we travel by air, you must have noticed that an insurance premium is automatically added. But you can also uncheck that box.

According to me, there is no such benefit from even that insurance. Because it is covering such an incident. That if there is an accident during flight or an accident involving loss of life or property it is covering such incidents. These events are also covered in term insurance.

Child Insurance

The third is child insurance plan. Many people sell these child insurance plans. This means that if you have children, you can secure their education in future. There are such plans in the market or life insurance of a child is also sold, but first of all we should understand the purpose of insurance. First, our children are not earning yet.

Intra-insurance covers events like loss of earnings so that the family of that person does not suffer but since our children are no longer studying, there is no need for life insurance. Otherwise, you will end up paying premiums unnecessarily. Then there are education plans. Which we have already discussed and all these things are already covered in term insurance. That’s why we need to buy a comprehensive term insurance plan.

Credit card insurance

The fourth insurance that we can avoid is credit card insurance plan. Unemployment can be a reason. Disability or accident may occur. As we discussed earlier, all these things are already covered in term insurance.

Secondly, it is better to maintain financial discipline than to buy an insurance plan for a credit card and increase the spending on the credit card. Buy less by using credit card and for events like unemployment and any illness for some time d you can create an emergency fund which we have discussed many times to protect your 6 monthly income in case of emergency.

Disease insurance

The fund can cover such an event. There are many schemes related to the heart. There are many covid specific plans in the last 2 years but according to me there is no benefit of such insurance plan

Since we do not know what type of disease we will suffer from in future, it is better to buy a comprehensive health insurance plan. Which covers maximum diseases and pre-existing diseases. So we discussed about 5 such schemes which we should avoid.

When to avoid Life in insurance?

Now let’s talk about life insurance In some cases, there is no need for life insurance. What is the purpose of life insurance? If someone dies, the family need not suffer. It means we want to change the income of that person but if the family income is already good. So maybe life insurance is not required and in what cases can it be? If your spouse is already earning well.

Then they do not require an insurance plan or if you have some income generating assets. Like many people have extra rental income. So they may not need it. Many people have good savings, good interest income in cases where the income is accrued assets or the monthly income is good.

Un such cases, life insurance is not required and when does it happen? This usually happens in your 40s or 50s when you build substantial wealth. So the need for life insurance decreases as your children also grow old and become independent but

insurance is necessary for those who are just starting their career and are in their 20s or 30s because of the times to come. liabilities may increase. So when we buy insurance, we should buy it as soon as the premium is low. So broadly speaking, we need only 3 main insurances as we discussed earlier.

  1. Life insurance in which we should buy a term insurance
  2. Health insurance, in which we should buy a comprehensive insurance after research
  3. Car Insurance which is already mandatory

So that’s all in this article. I hope you learned something new if you liked this article then share it with your friends and family members they may also have doubts related to insurance and if you have questions related to this article or website then you You can ask in the comment section

I read all your comments till 1 hour after the article is published and try to reply as well. So we will meet in another informative article. Till then keep learning, keep earning and be as happy as ever.

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