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No-cost coverage: 6 free insurance policies

Insurance » No-Cost Coverage: 6 Free Insurance Policies

6 insurance policies you can get for free
6 insurance policies you can get for free © fotoscool/Shutterstock.com

"Free insurance!" That's a come-on that might easily turn your head. But some of us have gotten skeptical about "free" offers, because you might have to buy an accompanying product you don't need, just to get a free item that isn't really worth having. We've all been there.

"It reminds me of back in the 1960s and '70s, when you used to get a free water glass in a box of detergent," says Norma Garcia, senior attorney for Consumers Union, the policy division of Consumer Reports. "If you're getting crummy soap, then what's the point?"

However, free insurance coverage may be attached to a product or service you do want, such as a checking account. And, though free, the policy itself may have some value.

"In many cases, the first thing you want to look at is what's excluded from the policy, and then what's included," Garcia says. "Do I really need this, and is this other product worth having without the insurance?"

Free insurance policies rarely provide the full protection you need; often the object is to get you to buy more coverage, to supplement the freebie. So, what kind of free insurance is out there, anyway?

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Here's a way to hold down your insurance costs: Take advantage of coverage that's free. Really!

Did you know, for example, that there's a company that offers families free 10-year, $50,000 term life insurance policies that don't cost anything? MassMutual's LifeBridge program is restricted to families earning between $10,000 and $40,000 a year. If the adult applicant dies, the money goes toward the children's educational expenses.

Several credit cards come with free cellphone coverage if you use the card to pay your wireless bill. The policies provide money if the phone is damaged or stolen.

At least a couple of new car models have come with free auto insurance, as a gimmick to spark sales. And, some financial institutions offer free accidental death and dismemberment coverage that provides a small benefit if the customer dies in an accident or suffers a dismembering injury.

 

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