6. Accidental Death Insurance
An accident is really unlikely…. unless you are an extremely unlucky person. Take into consideration that car wrecks and fires are unfortunate events that are actually covered under different policies. Also, note that an accidental death policy often has quirky stipulations that make it really difficult to collect on. That’s why you should avoid the hustle and bustle and opt for life insurance instead.
While a certain amount of insurance coverage is actually necessary, you need to choose wisely. As a general rule, broad-form policies that provide coverage for several causes are a better choice than limited-scope policies that only focus on particular diseases or potential incidents. You should always read the policies carefully and, if you don’t understand the terms, coverage, and costs, don’t sign them!