Insurance policies cover unforeseen circumstances. Because we cannot predict the future, we want to be ready to protect our financial needs if, or when, something terrible happens.
Insurance companies in Cameroon understand this and provide insurance policies to protect us from unforeseen calamities. These could range from diseases to disabilities and everything in between.
Five (5) Insurance Policies You Probably Do Not Need In Cameroon
While we always hope for luck to be on our side, potential catastrophes in our lives are not worth insuring. This writeup will look at 5 policies you don’t need.
Some of the insurance policies you do not need in Cameroon include:
1. Rental Car Insurance
Most auto insurance policies provide extra cover for car rental costs. They make you believe it is valid, should your car get in an accident. The truth is, most people hardly rent a car. The cost is relatively low and scarcely worth insuring when they rent one.
Although rental car insurance is not expensive, chances are you won’t need it in your lifetime. Meaning you would be spending more than benefitting from it.
2. Private Mortgage Insurance Policy
Private mortgage insurance (PMI) is A familiar cover to homeowners. It increases their monthly mortgage cost. What PMI does is to protect the lender against loss when lending. Borrowers pay for this insurance with no benefits along.
You require PMI if you purchase a home with a down payment of less than 30% of the home’s value. The down payment signifies you’re at risk of defaulting on the loan. If Put down a minimum of 30%, there will be no PMI. You can also decide to do 20% and take two loans out. One will be 70% of the price of selling the property. The other will be 20%. Do note; interests rates may prevent the homeowner from actually benefitting.
See Also: Mortgage in Cameroon.
3. Automobile Collision Insurance Policy
Collision insurance is designed to cover the cost of repairs to your vehicle if you are involved in an accident. If you have a loan out on the car, the loan issuer will likely require collision insurance, but collision is optional if your vehicle is paid off.
Therefore, if you have enough money in the bank to cover the cost of a new car, collision insurance may be unnecessary. This is particularly true if you are driving an old car because cars depreciate so quickly that many vehicles are worth only a fraction of their purchase price when you pay back the loan. Read more on car insurance rates in Cameroon.
4. Disease Insurance Policy
Policies are available to cover cancer, heart disease, and other maladies. Instead of trying to identify every possible illness you may encounter, get a good medical coverage policy instead. This way, your medical bills will be part of the cover regardless of the problem you face.
5. Life Insurance Policies for Children
Life insurance is designed to provide a safety net for your heirs/dependents. Because children don’t have heirs and, statistically speaking, are likely to grow up safe and healthy, most parents should not purchase life insurance for their kids. Instead, use the money you would have spent on life insurance to fund an education plan.
Conclusion
While a certain amount of insurance coverage is necessary, you need to choose carefully. In general, broad policies that offer coverage for many potential events are a better choice than limited-scope policies that focus on specific diseases or potential incidents.
Before you buy any policy, read it carefully to make sure you understand the terms, coverage, and costs. Don’t sign until you are comfortable with the coverage and are sure you need it.