Terrorism Insurance
Terrorism Insurance
Until recently, terrorism wasn't a real threat. Yes, we heard about it all over the world. We heard about subway bombings in Bologna, Italy and restaurant bombings in Madrid, Spain. All over the world, terrorists have been busy and Americans have known about it. But, never until terrorist activity hit American soil, did it really sink in with a great deal of Americans that we weren't indestructible.
But, it's just like having the opportunity to purchase flood insurance or hurricane insurance. It seems like an insurance company's trick to take more of your money that they will never have to give back. Terrorism insurance exists and you never know when you are going to need it. Ask the great people of New Orleans if they thought they would ever have needed hurricane insurance.
Terrorism insurance is needed by everyone. It's not a scam insurance that you'll never use and never have the need to use. The very real threat exists for anyone at any time. But, there are some pretty shaky insurance policies and then there are some good ones. So, let's take a look at what you will see so that you know what to avoid.
Some terrorism insurance policies have some tough limitations and I would stay away from companies like this. One policy limitation that I know of mentions that you are not covered if there was a travel alert in the last 6 months. While you may not want to travel after a travel alert, 6 months is a long time. And in this day and age, there is a travel alert at least once every 6 months. So, you are paying into a policy that it is very slim you will ever cash in on it. If you are hit by terrorists and you survive, but you have medical needs, you won't be able to use your insurance policy to cover them. An insurance company with this type of policy will look all over the world and find something they can use against you. Even if you did your homework!
There are other policies that stand out with their blatant language. One policy mentions that you are not covered in certain states like New York, Kansas and Oregon. New York seems to be a hot bed for terrorist activity. New York subways, New York bridges and New York buildings have all been targeted if not hit. So, you can have coverage everywhere in the world except the one place where it actually might happen. That's fishy! I'd stay away from that policy as well.
You can get coverage up to $1,000,000. But, some insurance companies have caps of $15,000. That's all you can get. That's basically a life insurance policy that would cover your funeral expenses and that's it. Insurance policies need to have enough in them to supplement your income and your loss when you are gone. A small policy is basically designed to take the burden from the family for funeral expenses. But, policies need to be sensitive to the loss of life and the burden that brings as well. An insurance company that acknowledges a loss of income, a mourning period and the need for the family members who survive is a company that will come through in your time of need.
While it is not the happiest thought to have to make plans for such a grim future experience as a terrorist attack, it is a necessary part of your financial planning. You may never need terrorism insurance. And I hope you never do! But, having it and never needing it is much better than needing it and not having it.