Single-issue insurance policies are considered a rip-off by some consumer advocates. Clark also agrees that you should avoid them. Examples of single-issue policies include mortgage life insurance, cancer insurance and accident insurance.

In the case of cancer insurance, insurers use the power of the C-word to sell the policy. Years ago, people wouldn't even utter the word "cancer." They would just say that you had a malignant tumor, because a diagnosis was often considered fatal. But today, many people survive cancer. Insurers, however, have learned that they can still capitalize on people's fear of the disease.

Accident policies are a tremendous rip-off. The reality is that general insurance -- of the life, disability and/or health variety -- represents a better choice.

Mortgage life insurance, meanwhile, is also garbage. The premiums are about 10 times what life insurance should cost. The worst part of it all is that you're insuring the mortgage company, not yourself; mortgage life insurance pays off the lender in the event of your death! But your survivors likely will have more pressing financial needs at that time. That's why plain vanilla term life insurance would suffice in such an instance.

Finally, extended warranties on electronics are another example of single-issue insurance policies that you should avoid. Consumer Reports says that 1 in 5 laptops will fail in the first 5 years. Yet, on the bright side, 80% will go for 5 years without a problem.

Another reason why extended warranties don't make sense is that the laptop or HDTV you buy today will be obsolete in 24 months. You shouldn't insure rapidly depreciating commodities.

Clark's Consumer Action Center has been receiving a lot of questions about accelerated mortgage offers. People are wondering if these offers are a new kind of scam. Clark thinks "scam" is too strong of a word, but he does think this is a serious rip-off -- and he wants to show you how to avoid it! First, let's take a look at the offer. It arrives as a friendly letter inviting you to pay off your mortgage years quicker than you normally would. The deal is that you have to pay your bank or an appointed marketing company $200-$400 to set you up on a bi-weekly payment plan. It also stipulates that you'll be billed another couple bucks each time you make a payment, or alternately that you'll pay nothing up front but every bi-weekly payment will be assessed a fee. This plan will have you paying half your monthly mortgage payment every two weeks. That's equivalent to 26 half-payments in a year. At the end of year, the marketing company on behalf of your bank makes one additional payment toward your mortgage. So the end result is that you pay 13 months in a 12-month period. But because you probably paid an initial fee to set this up, the bank held some of your money all year long and got rich off the interest.

Here's what you should do instead. Clark wants you to keep making monthly mortgage payments and add one-twelfth extra in the additional principal box on your monthly coupon. So if your monthly payment is $1,200, pay $1,300 instead. That way you'll do for free what your bank wants to charge you for -- and you'll bring your principal down quicker. There's one more possible bank rip-off related to your mortgage that you should avoid. They're going to try to sell you "croak and choke" insurance -- otherwise known as mortgage life and disability insurance. It states that if you buy their policy and die, they'll pay your mortgage. But Clark sees two problems here. First, you're paying an insurance premium to protect the bank. At the time of your death, there may be better uses of your money for your heirs. So you're better off with a standard term life insurance policy. Second, the bank charges a premium that's about 10 times as much as your plain old life insurance policy. Sometimes Clark wonders where the ethics in banking have gone!

Clark has often talked about how free meal seminars offered by annuity salespeople are to be avoided at all costs -- unless you want to get indigestion in your wallet for the rest of your life. An annuity is basically an insurance contract. The money you put in is not taxed until you spend it. Salespeople love to sell them because they get giant commissions. In fact, the commission is so large that it's hard for even a decent person to avoid the temptation of selling this garbage. Now The Wall Street Journal reports that a class action lawsuit has been filed against Allianz. This German-based company has been selling equity index annuities to older people via seminars, infomercials and free-dinner events.

Equity index annuities promise a portion of the gain of the stock market, while assuring holders against losses. They offer the allure of getting money without risk. But Clark thinks they're a piece of trash because all insurance companies cheat you on the gain -- only giving you a tiny portion of the actual gain in return for their guarantee of safety against market loss. Worse still, you usually have to stay in for 15 or more years to get the benefit. So salespeople target senior citizens, who may not live long enough to qualify for the guarantee. And if you are lucky enough to get wise to how bad equity index annuities can be, you may lose between 10 and 15 percent in penalty fees for surrender if you try to get out. Regulators across the country are calling this an instance of fraud. As Clark says, the "just say no" rule applies here to these free meal seminars.

Life insurance has gotten much cheaper over the years, in part because people are living longer. Add into the mix the Internet, which has made it ultra easy to compare prices when shopping for life insurance. The result is that term life insurance costs have dropped by two-thirds in the last 15 years. In the past few years, life insurance has dropped by as much as 60 percent! That’s a great deal! So, if you bought a policy when you were 30 and now you’re 45, you can get a new life insurance policy at a much lower rate than 15 years ago. As long as your health hasn’t declined, you’ll still be able to get great deals. The only purpose for life insurance is replacement of income if you die. So, if you have a wife, a partner or kids, you need it. And, you want to buy 10 times your income. If no one is dependent on you, you don’t need to buy life insurance. Just remember to buy insurance from only top rated companies, which means they have gotten a A++ or an A+ on the ambest.com Web site.

Since Clark’s son Grant was born, he has gotten a lot of solicitations for life insurance on Grant. It pulls on your heartstrings, for sure. But when should you buy life insurance on a child? Never. Life insurance is not for children. It’s for the benefit of children should their parents die. Yet, people still get sucked into these deals. Stay away from these offers if you see any. And consider a 529 plan instead. Saving for a child’s college education is much more useful, both for the young person and for you in regards to taxes.

If you’re thinking about changing up your life insurance policy, Clark strongly suggests that you shop around for term life policies. There are 20-year, 30-year, and 40-year level term policies, plus a few more. Level term means you buy insurance for a set number of years depending on your age and who is in your family. For example, if you have young kids and you want to provide financial security for them until they are adults, you would want a 20-year term policy. If you’re 35 and it’s just you and your spouse, you probably want to provide for the remainder of your spouse's life, if you die. So, you’d probably want a 30-year term. The prices keep getting cheaper because life spans are getting longer. As a result, you’re in a position to buy insurance at a much lower rate. Just make sure that when you’re buying this insurance, you get enough to take care of all your loved ones. Usually, a good bet is 10 times your current income. If you make $100,000 a year, for example, you need a $1 million policy. You can shop online now and compare quotes from several companies. One site Clark likes a lot is insure.com. Just be sure you go with a company that gets either an A+ or an A++ rating from AM Best.

Are you aware of the responsibility you have to protect your family? It’s called life insurance. Now, if you have no family and no one who depends on you, you can stop reading now. But if you have dependents and you have no life insurance, you’re putting your loved ones in a tough spot. Almost half of Americans either have no insurance or are woefully underinsured. So, this being “Life Insurance Awareness Month,” Clark feels compelled to remind you to buy life insurance. What kind of insurance should you buy? Well, you don’t want “permanent insurance” and that is what the salespeople will try and sell you. The three kinds you want to avoid are whole life, variable life and universal life. You want to buy the kind of insurance that is not considered permanent. It’s called “term” insurance and it’s based on the length of time you want to provide for your survivors. Usually ten times your income is the right answer. The good news is that term life insurance is cheaper than it’s been in a long while, so it’s also a deal.

Term life insurance is not the most interesting topic. But Clark has to keep mentioning it because it just keeps getting cheaper! Level term is what it’s usually called, and it means you buy insurance for a set number of years depending on your age. For example, if you have young kids and you want to provide financial security for them until they are adults, you would want a 20-year term policy. If you’re 35 and you want to provide for your remainder of your spouse's life, you might get 30-year term. The prices keep getting cheaper because life spans are getting longer. As a result, you’re in a position to buy insurance at a much lower rate. The Wall Street Journal ran some numbers to show us how things have changed since the ‘90s. They looked at a 40-year-old man with a 20-year term. In the ‘90s, it cost $1400. Today, that same policy is $400. So, if you bought a term insurance policy in the past 10 years, you may be able to get a cheaper one today. Just make sure that when you’re buying this insurance, you get enough to take care of all your loved ones. Usually, a good bet is 10 times your current income. If you make $100,000 a year, for example, you need a $1 million policy. You can shop online now and get comparable quotes from several companies. Just be sure you go with a company that gets either an A+ or an A++ rating from AM Best.

Life insurance is not one of the most interesting topics to discuss, but it’s a necessary one. Lark prefers that you buy term life insurance – plain and simple. You never want to tie your life insurance in some kind of savings and investment vehicle unless you’re earning more than $375,000 a year. So, term insurance is the kind you buy for a set period of time. And, according to the Wall Street Journal, term life insurance rates have dropped by about 50 percent in the past 10 years. The Internet is the No.1 reason why. People can now comparison shop online and companies have had to lower prices to compete. The second factor is that we are living longer. People who do actuarial work figure out the risk to insurers and that determines what rates will be as well. As you get older, rates will cost more. But it’s possible that you could get a lower price today than you did 10 years ago when you signed up. Or, maybe you were underinsured at the time you bought your policy and now you’re making more money. So, look around and maybe get a new policy. One of the greatest sources out there is USAA. Other site to try are accuquote.com and insure.com. The simplest rule is to buy 10 times your income. So, if you make $50,000 a year, you’d want a $500,000 policy.

Many people out there don’t surf the Web, and sometimes Clark forgets that. He often gives out Web sites that offer comparison quotes and information. So, what about those people are aren’t Internet active? There are options out there for you, but you need to pick up the phone and call. The companies that offer very good rates on term life insurance are TIAA-CREF and USAA. The phone numbers are 1800-223-1200 (tiaa-cref) and 1-800-531-8000 (usaa). You buy term life based on the years between now (your current age) and the number of years left in your working life. You base the amount on your needs, which include a wife and kids or just a wife or just a husband. You can get quotes from agents if you feel comfortable. But if the person starts trying to sell you something else, run the other away.

You can get huge savings on life insurance these days. Clark prefers that you buy level term insurance, which allows you to buy coverage for a certain amount of time. You hope that it never pays off and that you outlive your policy. But if it does your family members are set. Clark saw the news in the Allentown Morning Call, which publishes a lot of great consumer articles. This report shows that term policies have dropped by 50 percent over the past 10 years. So, if you took out a policy in the mid ‘90s or even early in the 21st century, you can replace your policy for a much lower price. Why have prices dropped so much? The first reason is because of the Internet. The second reason is because people are living longer and outliving their policies. So, reshop your policy and you could pay much less each month. You may pay a little more, but you want to buy only from companies rated either A+ or A++ by A.M. Best. And be sure to run away if someone tries to suggest variable life or universal life insurance.

Clark has some great news for you on the insurance and health care front. Many insurance companies are now writing policies to current and former cancer patients, according to the Dow Jones News Wires. One major life insurance company announced this week that it will offer insurance to women with early stage breast cancer at the same rate as women who are cancer-free. It used to be that having cancer meant you were not insurable. But actuaries are finding that survival rates for cancer are so high these days that they’re happy to sell you life insurance. So, if you’ve been denied health insurance because of cancer, you should shop around and see if you’re eligible now.

People have gotten far more comfortable buying life insurance, thanks in part to the Internet. Without salespeople, consumers are able to get quotes without pressure. And the Internet has allowed people to see the massive difference in costs from company to company. Level term life insurance has become the standard. You buy it for a certain amount of time, whether it’s 20 years, 30 year or 40 years. A 25-year-old with two young children, for example, may get a 20-year policy that would carry your children through young adulthood if you die. The policy only pays if you die, so it’s very simple. In addition, insurance costs much less and is going to continue to drop in price. Most people would be best buying term life insurance. The exception is if you make more than $300,000 a year, in which case whole life would work better for you.

There is a lot of confusion these days over what types of insurance you really need. There are only three. But first let’s discuss the kinds of insurance you don’t need. One kind of insurance you should never buy is credit life insurance, also known as “croak and choke.” Mortgage life insurance is the technical term. The salespeople pretend it’s a great idea, claiming that if you die your debts are paid off. But how important is it to pay off your debts when you’re gone? Basically, with this insurance, the bank gets paid off and gets your money instead of your heirs. In addition, the premiums are about 10 times as high as traditional types of life insurance. Mortgage life’s cousin is credit life insurance, and you are pushed to get this when you buy a car or other big purchase. These are sold as protection for you, but really they provide protection for the bank. So, it’s essentially like putting lipstick on a pig. Maybe it looks better, but it’s still a pig. Another popular item is the variable annuity. It’s almost never a good idea to buy one of these because there are monstrous commissions. What about cancer insurance? If you get cancer, you need health insurance and term life insurance, and that’s it. And, if you can’t work and need replacement of your income, you want disability insurance. Those are the only three you need. All the others you can chuck. What about your car? You don’t need rental insurance when renting a car, first of all. If you get in an accident, you’ll owe regardless of whether you have insurance. And usually your credit cards or auto insurance company has some type of temporary rental car coverage. PEC or “personal effects coverage,” which covers things stolen out of your rental car, is not necessary either.

Is it s good idea to buy insurance from your place of business? In almost all cases, the answer is no. Kathy Kristoff did an analysis of buying group insurance industry through employers, and it’s a total ripoff. In some cases, people are paying almost 200 percent more for these policies. That’s because people get this insurance without any kind of exam, and companies jack up rates for this reason. The better shape you’re in, the more you’ll save when buying your own policy. It will save you hundreds if not thousands of dollars a year. Just make sure you pass the medical screening tests for an individual policy before you dump the employer plan. Clark likes level term life insurance, where people can buy a policy for 20, 30, 40 years or whatever you need for “replacement of income” for your survivors. Also, it’s a good idea to get quotes on level term from actual insurance salespeople and online.

If you have your homeowner’s insurance with MetLife, Clark has some good news for you. The company is now offering free ID theft help as part of your policy. The first two states to try this out are Florida and New York, but it will probably expand across the country. That’s good news because, as an adult, you have a one in 15 percent chance of having your identity stolen. So, this is the real coverage from an insurance company. MetLife is actually hiring an outside company that will prepare your affidavits and contact police for you. Hopefully, more insurance companies will join MetLife. But in the meantime, it’s up to banks, credit card companies and retailers to protect its customers and create some legislation with some real teeth in it. We’ll see how it works and let you know!

Clark has been on the air since the mid-80s and he remembers getting a flurry of panicked calls about a failed insurance company known as Executive Life in 1991. The company was one of the largest in the industry at the time and callers were wondering if their policies would be okay and their money would be safe. At the time, Clark figured it would take a few years to resolve the issue and told them so. Well, today he picked up the L.A. Times and saw an article about customers still being affected by the failure of this company. The headline read, “Customers of Executive Life Fear Big Losses.” So, 13 years later, customers are still out money that they may not ever get back. You may wonder how this is possible, but there are serious problems with the insurance industry. One of the major problems is that insurance is regulated by each state and there is no federal equivalent that protects people. Therefore, funds are not secure and there is no guarantee that you will get your money back if a company fails. So how do you protect yourself? If you’re buying life insurance, disability insurance or any long-term insurance, you must do your homework. Buying homeowner’s and auto insurance is different because these are short-term. But you need to know the financial strength of a company when it comes to other types. And, it’s only a mouse click away. Go to ambest.com, which grades insurance companies. All you need to do is pick a company that is A++ or A+. Those are the best companies out there and they’re likely to stick around. Clark never imagined that the insurance industry would fail policyholders so badly, but it has. So, make your choices wisely

Clark has been on the air since the mid-80s and he remembers getting a flurry of panicked calls about a failed insurance company known as Executive Life in 1991. The company was one of the largest in the industry at the time and callers were wondering if their policies would be okay and their money would be safe. At the time, Clark figured it would take a few years to resolve the issue and told them so. Well, today he picked up the L.A. Times and saw an article about customers still being affected by the failure of this company. The headline read, “Customers of Executive Life Fear Big Losses.” So, 13 years later, customers are still out money that they may not ever get back. You may wonder how this is possible, but there are serious problems with the insurance industry. One of the major problems is that insurance is regulated by each state and there is no federal equivalent that protects people. Therefore, funds are not secure and there is no guarantee that you will get your money back if a company fails. So how do you protect yourself? If you’re buying life insurance, disability insurance or any long-term insurance, you must do your homework. Buying homeowner’s and auto insurance is different because these are short-term. But you need to know the financial strength of a company when it comes to other types. And, it’s only a mouse click away. Go to ambest.com, which grades insurance companies. All you need to do is pick a company that is A++ or A+. Those are the best companies out there and they’re likely to stick around. Clark never imagined that the insurance industry would fail policyholders so badly, but it has. So, make your choices wisely.

For years, Clark has encouraged his listeners to shop around for insurance coverage of any kind. Health coverage is a bit hard to shop for, but the others are fairly easy. It’s just boring. But there may be a deeper, more evil reason why people see such wide price differences between companies. Consumers may have been paying tons more in premiums because of kickbacks that deceitful insurance companies were receiving. The first phase involved sales of insurance from company to company. The second phase involved ripping off people who get benefits from their employer. These companies were basically charging a huge mark-up on the insurance offered through an employer. There is also a third phase, which involves the direct sale of insurance to individuals. So, it’s now even more important that you shop the marketplace when your renewal comes up. Use the Internet, word of mouth and traditional resources before you buy. Treat insurance as if it were a car you would like to buy. It’s always a good idea to shop first with the companies Consumer Reports recommends. They are Amica Mutual, USAA and Cincinnati Insurance. And, decade after decade they have been the most reliable companies. Best in service doesn’t necessarily mean best in price, but sometimes it’s worth it to go with the best.

Clark talks a lot about life insurance in his books. It not a terribly exciting topic, but it’s important. Life insurance should basically be just death coverage. No savings payoffs; simple is better in this case. In fact, Clark finds that term insurance is now selling itself. People are shopping for simple death coverage. It is cheap and necessary. But because people’s lifestyles are not as healthy as they should be, or used to be, fewer people will actually qualify for the best rate – often called “super preferred” or “preferred plus.” But even the normal, preferred rates are very good these days. For instance, the New York Times reported that a 52- year old man could buy a 20-year, $1 million d policy for $300 a month. This is a great rate! As a general rule, ten times the family income is a good amount to buy. Look into buying from an A++ or A+ company only. The term you buy may be a 10, 20, or 30, year policy. It is offered with the same cost over the life of the policy. A top-rated company will have licensed sales people who will be knowledgeable about what you need. This is called level term insurance. Clark recommends that you contact independent agents. The help of a professional when deciding can be invaluable.

Clark is 49 years old and he will consider buying long term care insurance in the next 8 to 10 years. LTC insurance is something about 80 percent of people should have. But many people mistakenly think Medicare pays for the insurance. That is not the case. Medicare pays for a short stay in a hospital. Medicaid confuses the subject even more because Medicaid can pay for nursing care help, but it's only for the indigent. So, if you're not poor, but your not ultra rich either, long term care insurance is for you. The trouble is that there are many rogue companies out there that will take your money but provide no care for your loved ones. Insurance companies pay for your long term care, and long term care coverage pays for care in nursing home or home health care if you need it there. So far, Clark has found only eight companies that are financially sound and worth your while to consider. You can find them here on Clark's site. Your parents may need your help with this topic, so be sure you do your research early. At 60, it will cost you $3,000 a year. But the older you are when you buy it, the more expensive it is.

The insurance business has many ups and downs, and it can get really confusing when you consider all of the choices for life insurance. Now, there is another alternative. Companies are now offering insurance that gives you all of the money you paid in if you live past the maturity date on the policy. You will pay about 40 percent more for this policy than you will for regular policies. The two main types of life insurance are term and whole life. Term insurance just pays out money when you die. Whole life is much more expensive because it pays a death benefit and it’s a savings account. The truth is that most people do better with term insurance than they do with whole life insurance. So, what about this new kind of insurance? If you follow all of the rules, it can be a great return. But there are a lot of issues and ifs that arise. Most people bail on these policies before they’re up because they are sick of paying so much money. And, there is the chance that you will die before it ends. So, stick with simple term insurance if you don’t want the uncertainty and risk. It’s very easy to shop for term insurance online at the various comparison sites.

Clark has talked about how to buy life insurance and annuities before on the show, but apparently he hasn’t done a very good job because the questions keep coming up. First of all, you want the company you buy from to be financially healthy. If an insurance company goes under, your policy is practically worthless. The state insurance guarantee systems are ineffective and they expose people to massive losses and delays. There is no equivalent to the insurance you receive when putting your money in a bank – known as FDIC. So, it’s up to you to protect yourself. There are several insurance rating services, and the one Clark likes to suggest you use is A.M. Best - ambest.com. The company rates insurance providers on grades from “A” to “F”. And, you only want an “A+” or “A++” company. An “A-rated” company is okay, and with a “B” or less is no good. If you have no one who depends on you for income, then you probably don’t need life insurance. But if you do, then you need a substantial amount. And, Clark likes term life insurance best. Most agents don’t like to sell you this because they’re low commission sales. But they offer you great coverage. If you’ve got a lot of working years left, you want to consider a 30-year policy. If you’re a little older, a 20-year term would work. And, so on. Agents will probably push “variable universal life,” but there is almost no one who can benefit from this type of insurance. If you make more than $350,000 a year, you may benefit. Otherwise, stick with term life insurance. As a general rule, you want to take out an amount that is 10 times your annual income. If you make $50,000 a year, buying a $500,000 life insurance policy is a good idea. And when someone approaches you about buying an annuity, you want to run away as fast as you can.