BANGALORE: Insurance policies are not meant for the little problems in life, instead they are meant for the big events that can derail you financially. Everyone is aware of the fact that insurance is important, but when you look at all of the different types available today, you can feel overwhelmed.  However, there are many insurance covers available, of which some are valuable and some are unnecessary. 

Let’s have a quick look at the list of insurance policy buys that can drain your money:

1. Credit card insurance: Many people have a wrong conception that by taking credit card insurance policy they will be protected by paying off their credit debt entirely, even if they are unable to meet their financial obligations. This conception is not true. Credit card insurance only pays a portion of your monthly bill, which is usually the minimum amount that is due. But actually, the bulk of the debt remains on the books and the interest remains building. Also there are a lot of limitations on exactly what the insurance covers and what it doesn’t cover.