Insurance plays a critical role in protecting your home, finances, and loved ones. But not all insurance policies are necessary—or even useful. In fact, some types of insurance may cost more than they’re worth, or duplicate coverage you already have.
At Eugene C. Yates Insurance Agency, we believe in helping clients make smart, informed decisions about the insurance they truly need. Here are a few types of insurance that are generally not recommended for most people.
1. ❌ Credit Life Insurance
What it is: This policy pays off a specific loan or credit card balance if you die.
Why to avoid it: It’s often overpriced and limited in scope. Unlike a life insurance policy, the payout goes directly to the lender—not your loved ones. Plus, term life insurance can cover all your debts and more for a lower premium.
Smarter alternative: Choose a term life insurance policy that covers your debts and gives your family financial flexibility.
2. ❌ Extended Warranties or Appliance Insurance
What it is: Coverage for repairs or replacements after a product’s standard warranty ends.
Why to avoid it: These policies are filled with exclusions and fine print. Often, the cost of coverage is close to or more than the value of the product itself.
Smarter alternative: Save the money you’d spend on premiums and use it for repairs or replacements if needed.
3. ❌ Flight Insurance
What it is: Coverage in the event of a plane crash.
Why to avoid it: Commercial air travel is incredibly safe. If you already have life insurance, you’re covered whether you’re flying or not.
Smarter alternative: Stick with comprehensive life insurance for peace of mind no matter where you are.
4. ❌ Mortgage Protection Insurance (MPI)
What it is: A policy that pays off your mortgage if you pass away.
Why to avoid it: It pays your lender, not your family, and is usually more expensive than term life insurance with fewer benefits.
Smarter alternative: A term life policy lets your family decide how best to use the payout, including paying off the mortgage.
5. ❌ Disease-Specific Insurance (e.g., Cancer Insurance)
What it is: Pays benefits if you’re diagnosed with a specific illness.
Why to avoid it: These policies are limited and don’t provide broad protection. If you have good health insurance, they may be unnecessary.
Smarter alternative: Consider critical illness insurance for broader coverage—or simply make sure your health insurance plan is strong.
6. ❌ Accidental Death & Dismemberment (AD&D)
What it is: Pays out if you die or are severely injured in an accident.
Why to avoid it: It only covers accidents—not illness, which causes most deaths. Most people are better served by a quality life and disability insurance policy.
Smarter alternative: A combination of life insurance and long-term disability insurance offers more comprehensive protection.
7. ❌ Private Mortgage Insurance (PMI)
What it is: Required if you put less than 20% down on your home—it protects the lender, not you.
Why to avoid it: You’re paying for coverage that doesn’t benefit you directly. If you can, avoid it altogether or remove it as soon as you qualify.
Smarter alternative: Refinance once you reach 20% equity, or aim for a higher down payment.
âś… Focus On What Matters
These types of insurance are worth considering and usually essential:
- Homeowners insurance
- Auto insurance
- Health insurance
- Life insurance
- Umbrella liability insurance
- Disability insurance
- Business or commercial insurance (if you’re self-employed or own property)
🤝 Need Help Navigating Your Options?
At Eugene C. Yates Insurance Agency, we help you skip the fluff and focus on what you really need. With access to dozens of top-rated carriers, we’ll find you affordable, personalized coverage—and make sure you’re not paying for anything unnecessary.
đź“ž Call us today or request a free quote online. Smart coverage starts here.