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This is probably goes against the conventional advise, after all, buying insurance is always a view as a responsible undertaking and a good thing. So why not? Insurance is expensive and is easily overpay. Sometime insurance is necessary and sometime it just simply not worth the money. Below are some of the insurance that you can live without yet still being happy.

Credit card loss protection
This type of insurance covers your credit card losses if the card is stolen/loss. The idea behind such insurance sounds good as Malaysia yet to have a law to limit credit card fraud loss. But in reality, most of this insurance offer has a very small amount of protection and simply not worth the money. For example, Alliance bank’s fraud protection prior to notification is only RM440. Does that amount enough to protect your card from fraud, probably not. The safest way to protect you from credit loss/fraud is to do an immediate reporting to the issuer.

Cash-value or Whole life Insurance
This is a conventional insurance with saving plan, most commonly known as cash bonus. Most people like this type of insurance because if forces one to save, get the cash bonus and at the same time protected. Unfortunately, this is also the most expensive type of insurance and the return is not much better than fixed deposit. Here’s how cash value works. A portion of your regular premium pays for your life insurance. The balance, minus management charges, is applied to your cash value savings account. Therefore, it will take at least 10 years to see the overall benefits of such insurance. Most experts agree that you’ll get a much higher returns if you just buy ordinary term life insurance – and invest the difference on your own.

Investment-linked Insurance
This is conventional insurance combine with investment. This is a rather ‘popular’ insurance and most people are attracted to the ‘investment part.’ Precisely because of the investment part, there is a lot of transaction cost involved such as changing the investment portfolio, cashing out the gain. Further more the premium paid is divided into protection and investment and you can easily end-up neither way. The main objective of insurance is protection, for the same reason in the cash-value insurance, you are better off to invest directly in unit trust yourself.

MRTA (reducing term life assurance)
Simply puts it, MRTA pay off your housing mortgage if your die or became disable. This is good as your family is assured a roof over their head, but it is expensive and is better off to replace it with a life insurance, which serves the same purpose.

Accidental Death Insurance
This is a life insurance but only comes to valid if you die in an accident. Events though there are a lot of accidental death we read from newspaper, the odds are high that your loved one would never collect such pay-out.

Insurance for kids
Life insurance is for protection, kids don’t earn any income and have not dependents, so they don’t need insurance.

If you have no dependents
Life insurance is for protection, therefore if you do not have any dependents, there is no need for a life insurance. Instead, what you need is disability or income protection insurance.