Insurance That You Don't Need

[christopherp552]

When it comes to car insurance, i think you only need to have liability insurance - to cover the expenses on the other party.

[TermMonster]

I believe young folks should purchase life insurance while they are young and while it is cheap. Term insurance is a good choice provided the get the Return of Premium rider which will refund them all of their premiums if they outlive the term. Just another $10K-$15K check they'll be happy to see 30 years from now. I am also a big fan of cash value dividend paying whole life insurance as an investment vehicle as well as Indexed Universal Life Insurance which will allow you to get stock market gains without stock market risks.

I agree you should purchase life insurance when you can get it - in other words, when you're young. Term life insurance is very cheap for people in their 30s and 40s.

I'm not a fan of using life insurance as an investment. It only makes sense when you use cash value insurance as part of an estate plan to offset taxes upon death. One thing the proponents of insurance-as-an-investment don't tell you is that UL and Variable Products carry company-specific risk in addition to market risk. Remember, these products are backed by the insurance company (think AIG). Only buy these products when you're sure the issuing company is stable and will be around to pay your claim.

[TermMonster]

Underinsured motorist coverage is standard in all auto liability policies but can be waived to reduce cost. Make sure you don't waive it! Lot's of irresponsible, uninsured drivers out there!