The Insurance You Don't Need

Credit-Card Balance Insurance

This type of policy will pay off your credit-card debt if you become ill, disabled, or lose your job. Sounds good, right? But most disability policies pay out enough to take care of your bills if you're unable to work. And setting up an emergency fund to cover three to six months' worth of household expenses is a far more cost-effective safeguard in case you're temporarily unemployed, says Jean Chatzky, author of Make Money, Not Excuses. Instead of dishing out roughly 10 percent of your monthly balance toward this insurance, you're better off using the money you'll save to pay down any credit-card debt.