The 7 Smartest Things You Can Buy Are Those You Hope You Never Use

by Ron Haynes


Have you ever bought something and never used it? Maybe you purchased a coat or a piece of furniture at a yard sale and you never used it. Maybe you bought a dress for a party you never attended. Later, you experienced buyer’s remorse when you realized that your cash was wasted and that coat, furniture, or dress mockingly laughed at you from your closet. It’s a bad feeling.

But there are some other things you’ve hopefully purchased that you sincerely hope you never use. The irony is, if you DO use them, you’re very thankful you made that purchase. When they’re needed, they can really keep you from bursting your budget!

Car Insurance

I’ve never personally had a car insurance claim, but I’m always glad that I have it. With the current trend of lapsing auto policies, it make good sense to keep my policy in force … in addition to being required by law! Also, by checking with Netquote.com, I can always “insure” that I have the best price on my current policy.

Health Insurance

Though I’ve never had a auto claim, I’ve had more than my fair share of health insurance claims. For the past three years, even with a very good health policy, I’ve had over $10,000 each year in personal medical expenditures. Without my very good health insurance, my expenses would have probably thrown me into bankruptcy.

Disability Insurance

A disability is the main risk I have as a middle age male and I always maintain the maximum amount of disability insurance I possibly can. I consider my stream of income from work to be one of my greatest assets. Insuring it is just plain common sense.

Dental Insurance

Good dental health is related to good health overall and without dental insurance, many people shun the dentist. That’s a shame because very good dental insurance is available at minimal cost. I use my dental policy for regular cleanings and checkups to make certain my teeth are in good shape. This past year, I had seven fillings replaced and a crown. Dental insurance saved my skin!

Life Insurance

Life insurance is unique in that there is only one claim. That’s one reason so many companies push it! Whether someone depends on your income or not, you need life insurance. That is where I depart from a lot of people in the personal finance blogosphere. A well thought out financial plan will always include life insurance because it will pay off any remaining bills you leave behind as well as cover your funeral costs. Many life underwriters have reworked their term policy costs and term life insurance rates have dropped over the past few years. If you don’t have it, look into it.

Homeowner’s Insurance and Renter’s Insurance

I did have an opportunity to use my homeowners insurance this past winter when we went through a huge ice storm and were without power for nine straight days, but in the end, I decided it was more worthwhile to have a “no claims” profile with my issuing company. Besides, I did most of the work myself in fixing my roof and the reimbursement would have been minimal in comparison.

If you’re a renter, probably no type of insurance is overlooked more than renters insurance but regardless of reason, this is one policy that all renter’s need to have in force. Apartments and rental homes are burglarized just like single family homes and having the proper policy to cover fire and theft will minimize your personal risk of loss.

Hard Drive Insurance

With most hard drives predicted to last only 5 years or so, I’ve taken steps to backup my valuable files by using Mozy. With their online backup you can back up your irreplaceable files automatically and securely. Mozy backs up your files in the background and if you’ve ever lost valuable information to a hard drive crash, especially if it wasn’t backed up, you know how valuable an automatic, online backup system could be. At less than a few bucks per month, it’s a no-brainer.

Who knew buying things you hope you never use could be such a wise decision!

About the author

Ron Haynes has written 1001 articles on The Wisdom Journal.


The founder and editor of The Wisdom Journal in 2007, Ron has worked in banking, distribution, retail, and upper management for companies ranging in size from small startups to multi-billion dollar corporations. He graduated Suma Cum Laude from a top MBA program and currently is a Human Resources and Management consultant, helping companies know how employees will behave in varying situations and what motivates them to action, assisting firms in identifying top talent, and coaching managers and employees on how to better communicate and make the workplace MUCH more enjoyable. If you'd like help in these areas, contact Ron using the contact form at the top of this page or at 870-761-7881.


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{ 5 comments }

Mr. Pilgrim

Good read!

I’ve used my home owners,car, dental and disability insurance.

Disability insurance is one I plan on keeping for sure. This insurance kept me financially in place a couple of times. No one offered to pay my bills or buy our groceries and because I was paying on a mortgage, I could not get food stamps. Realize that the government will NOT help you in these situations.
Premiums I paid for DI,over 18 years, will never catch the amount I received. My advice is if you can get it, DO IT, get something even if it is a small plan.

Phi

The hard drive insurance is new to me. Definitely disability and life insurance are ones I hope I never have to use.

Ron

You’ll be glad you have them if you do. I’ve known widows that did and some that did not have life insurance on their husbands. They never regret having it. I’ve also known parents that had insurance on their children who tragically died. That money helped pay for their funeral expenses and for counseling sessions that lasted several years.

DriverSide

Should you ever need to file an insurance claim, here’s a helpful article:

How To File An Auto Insurance Claim.

Carrie

These are all very good points! Insurance usually feels like wasted money until it must be used. One thing I do suggest though is making sure you fully understand the details of each policy you pay for. I signed up for insurance to cover my cellular phone with Sprint. When my phone became damaged due to poor manufacturing I learned that my monthly insurance payments and deductible cost more than my phone was worth and that my insurance did not include repairs.

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