Here are some tips about buying insurance ....
1. Buy insurance for the risks that have a severe impact that you or your family cannot bear. Do not buy insurance for small losses that you can afford to bear.
2. Make sure that you pay a fair rate of premium, relative to the expect cost of the loss, and are not overcharged.
Rule 1 means that you should insure the major risks, such as loss of life, property or car. You do not need to insure for small losses, such as $500 for the loss of a baggage, as you can afford to bear this loss on your own.
Rule 2 means that you do not pay $100 for a risk that should cost only $10. If you have a 0.1% chance of incurring a medical bill of $50,000, you should pay not more than $100 (i.e. $50 for the expected loss and $50 for the expenses and profit of the insurance company). You should not, for example, pay $500 to cover this risk.
To apply rule 2, you have to find out what is charged by a few insurance company for the same risk. You have to find out for yourself. You should not rely on the agent alone, as the agent want you to buy the policy recommended by him (for obvious reason).
You should never buy a product where it is difficult for you to understand and to compare. (Most people make this mistake. This is how the insurance company make so much profit).