Which insurances are unnecessary? A financial expert explains why residual debt insurance, household contents insurance and capital-forming life and pension insurance are often unnecessary and how you can get your insurance in order.

Which insurances are unnecessary? A financial expert explains why residual debt insurance, household contents insurance and capital-forming life and pension insurance are often unnecessary and how you can get your insurance in order.

According to a report by www.mdr.de, some insurance policies are unnecessary and only cost consumers money without providing them with much benefit. In the UK, millions of such redundant contracts have been unwound over the last decade and over £30 billion has been paid back to customers. This clearly shows that it is worth critically examining which insurance policies are really necessary.

One such insurance that is often viewed as unnecessary is residual debt insurance for installment loans. They cost consumers money and make financial service providers rich. However, in many cases they do not provide much benefit. Therefore, consumers should examine this point critically and consider alternative options.

Household contents insurance should also be viewed critically. According to the article, only 40 percent of insurance premiums are actually spent on compensating for damage. Consumers should therefore look closely at the price and compare alternative insurance policies.

Another category of insurance that is often viewed as unnecessary is cash-value life and annuity insurance. Due to low interest rates and high costs, they are often not worth it. Consumers should therefore consider alternative options for retirement planning.

In addition, death benefit insurance is usually not profitable. It therefore makes more sense to save money for the funeral itself. Consumers should consider whether taking out such insurance is really necessary.

It is advisable to create an insurance folder to keep track of all insurance policies. All insurance policies should be checked regularly to check whether you really still need them and whether there are cheaper alternatives. It is also important to keep an eye on the notice periods in order to avoid unnecessary costs.

In summary, some insurance is unnecessary and only costs the consumer money. It is therefore advisable to regularly check all insurance policies and consider alternative options. This creates potential savings and allows consumers to find the insurance they really need.