💰 Why Agents Push Add-Ons
Add-ons are pure profit for insurance companies. They're cheap to administer but priced for maximum margin. Agents get extra commission for selling them. Here are the ones to decline.
❌ Add-Ons to Skip
1. Accidental Death & Dismemberment (AD&D)
SkipPays extra only for accidental death. But only ~5% of deaths are accidental. Just buy more base life insurance instead.
2. Credit Life/Credit Disability Insurance
SkipOffered when you take a loan—pays off debt if you die. Wildly overpriced. Regular term life is 5-10x cheaper for same coverage.
3. Rental Car Company Insurance
SkipYour personal auto policy likely covers rental cars. Your credit card may too. Don't pay $30+/day for duplicate coverage.
4. Return of Premium Life Insurance
SkipGet your premiums back if you don't die! Sounds great, costs 30-40% more. Invest the difference instead—you'll come out way ahead.
5. Pet Insurance from Your Employer
SkipEmployer pet plans are often overpriced compared to buying directly. Shop independently—you'll often save 20-40%.
6. Flight Insurance
SkipPlane crashes are incredibly rare. Your existing life insurance already covers you. Many credit cards include travel accident insurance.
7. Extended Warranty on Most Electronics
SkipThe math doesn't work. If it's cheap to replace, self-insure. Your credit card may already extend manufacturer warranty.
8. Cancer/Specific Disease Insurance
SkipOnly pays for one disease. What if you get something else? A good health insurance plan + disability insurance covers everything.
9. Mortgage Life Insurance
SkipCoverage decreases as you pay down mortgage, but premiums stay the same. Regular term life is cheaper and more flexible.
10. Life Insurance for Kids
Usually SkipKids don't have dependents or income to replace. Exception: locking in insurability if family history of genetic conditions.
✓ Add-Ons That Are Worth It
Roadside Assistance (If You Don't Have It)
$10-20/year through your insurer is often cheaper than AAA. Worth it if you don't have it elsewhere.
Umbrella Insurance
$1M liability for ~$200/year. If you have assets to protect, this is excellent value.
Sewer/Water Backup Coverage
Often $50/year to add to homeowners. Not included in standard policies, and backups are common and expensive.
The Bottom Line
Most insurance add-ons exist because they're profitable, not because you need them. Before adding anything, ask: "Is this already covered by another policy?" and "Would I be better off buying standalone coverage?" Usually the answer is yes.