What would be the smartest insurance to have after life insurance if you want to spend your premium wisely?
This would involve in the Unites States and Globally.
Define “wisely”.
This would be the second most mathimatically to get a return on investment.
Any return at all or a positive return?
The actuaries that set the premiums do a very good job at making sure that, on average, nobody has a positive expected return on any policy.
In many places you are required to have car insurance to own a car. Most banks also require you to have insurance on your home if you have a mortgage. So those are essentially not optional if you wish to operate in those venues.
Health insurance is pretty important in the U.S. Less so in other nations where it is provided. I doubt there is a general answer to your question.
I’d question your assumption that life insurance is the “smartest” one to have. For example, I don’t have any dependents, so there is no need for me to have any life insurance at all. Your subsequent post mentions “return on investment,” which indicates that you’re thinking of whole or universal life insurance. My understanding is that the “smartest” way to buy insurance is to buy a term life policy and invest your money elsewhere.
The answer is “whatever policy is most necessary to cover excess risk.”
If there’s no excess risk, then you’re better off with no policies since others are right about no positive expected return with any policy.
If there is excess risk, your risk is probably different from mine. I consider my Errors & Omissions policy to be money well spent… but such a policy would probably be useless to you.
Yes, life insurance is only wise if you are the beneficiary.
For most healthy people, accident insurnace of some sort to cover the cost of personal care should you need it, maybe? Depends on your odds.
Car and house mortgage insurance, as mentioned above, are mandatory so probably irrelevant to the OP.
Odds are your house contents insurance may be an extra insurance, but very useful if needed. You’d be surprised how many people underestimate the value of their contents until they ahve to replace clothes, furniture, toys and personal effects. This also may include the cost of staying in a hotel while your house is repaired.
Travel health insurance is money well spent - here in Canada, all significant hospital medical expenses are covered like any civilized country - but stray beyond the border and you could rack up thousands of dollars in bills, almost as if you were an American - not to mention the cost of flying someone back from a foreign hospital. I think it was about $50 each or something to cover a young healthy traveller for a year for trips of less than 30 days. One car accident or fall down the Spanish Steps and your insurance more than pays for itself.
Insurance isn’t an investment. It’s a way of spreading the risk of a loss over a large pool of people.
But my answer to your first post would be to ask if the cost of premiums exceeds the maximum benefit. (When I was working in eyecare, I did see some cases where premiums + co-pays exceeded the cost of the one exam per year and one pair of eyeglasses every other year that the vision insurance covered.)
This. Really the only way to have an edge on insurance is when it is based on something you know but they don’t–like that you plan to take up smoking in two years, or that while you’ve always been a responsible driver, that’s because you had a warrant out for your arrest and once that’s resolved, boy howdy, you are going to drive like a maniac. As long as you basically are the person that the stats suggest you are, they got your number(s).
Maybe disability or long term care insurance. A lot depends on your age and the amount of assets you have.
Exactly. If you’re looking for ROI from your insurance policies, you’re doing it wrong.
Nearly all bank and housing loans in our country have mortgage redemption insurance.
If you’re looking for insurance with a good chance of collecting a payout, get motorcyle insurance. And a motorcycle of course. Don’t bother learning how to ride, it’s easy.
Money well spent - from the bank’s perspective. They benefit even if you don’t pay up. I don’t think it clears your debt, just transfers it. (Never had to find out).
Seriously, for $12 a year, I historically have gotten my car towed once every 5 years at $80 a pop or so.
that works because it really does not cost the driver close to $80 to tow a car. It’s more of a “what choice do you have?” fee. So any money at all is found money for him and you and the insurance company.
Well health insurance and auto insurance are both more important to have than life insurance. Dental if it isnt included with your health insurance.
Long term disability …