What insurance do you need?

At a minimum, you will need insurance policies covering your property, income and health to protect yourself from the inevitable difficulties in life. All of these policies can be purchased through insurance agents or brokers.

• Property insurance includes automobile, renters and homeowners insurance. They cover your vehicle, home and belongings. Liability insurance protects you if others are injured in your home or vehicle. You can purchase an umbrella policy, which provides extra coverage after the liability coverage of your property insurance runs out. Car dealers, some landlords and mortgage lenders require these insurance policies.
• Income and savings insurance includes life, long-term care, disability, worker’s compensation and unemployment insurance. By providing or protecting income and savings for you and your family, these policies safeguard your financial future in case of illness, injury or death. Employers might provide disability, worker’s compensation, group term life and unemployment insurance. Life and long-term care insurance are commonly purchased on your own.
• Health insurance extends beyond medical, dental and vision insurance. It includes disability and long-term care insurance as well. These insurances offset the costs associated with medical care and give assistance in case you are injured or need daily living assistance. Employers might provide options for these policies.

Insurance options that you purchase on your own change as you age. Generally, young adults are concerned with health, auto and property insurance while sometimes considering life and liability policies. In your working years when you might be raising a family, your focus may expand to cover your income with life, long-term care and disability insurance. Then, as you near retirement, you may focus on protecting your wealth with liability, disability and long-term care insurance.

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