5 Insurance Policies You Probably Won't Need

1. Accidental Death Insurance

Most people are covered for accidents involving death or dismemberment by an employer’s insurance program, a provincial workers’ compensation program or the death benefits of their auto insurance. As a rider or a separate policy, accidental death insurance “plays on the emotions of buyers,” says Edmonton-based financial blogger Tom Drake, and isn’t the best strategy. Even though adding $100,000 in accidental death and dismemberment coverage could cost as little as $10 a month, you’re better off putting that $120 or more a year towards additional life insurance (assuming you qualify). After all, whether you die by accident or natural causes, it doesn’t change the amount of income that needs to be replaced through insurance.