One kind of insurance that I find is unnecessary and expensive is the kind that “protect” the outstanding balance owed in your credit card.
The other day, I received a mailer promoting such a package.
If $10,000 is the average monthly outstanding balance on the card every month, premiums come up to a hefty $400+ over the course of one year. For that amount, most people would be able to buy ten times the coverage.
The only way this particular credit card insurance (other plans might differ) would make sense is if you have a case where the monthly outstanding balance is very low, but the average outstanding balance is very high.
Say if someone always pay off the (huge) outstanding balance before the monthly statement, he may end up paying little or no premiums. But he would still enjoy the coverage on his outstanding balance should something happen to him.