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Health, Auto, Life, Disability, Homeowners, Flood, Renters, Long-term Care, Umbrella, Supplemental, Identity Theft, Travel.

WHY do you need/want each of these types of insurance? There are people who will explain how, and will also sell you each and more. But it has taken me years to appreciate what they are for, and decided if I should have one vs the other.


Health: everyone probably gets why they should have it. Duh - its your health :)

Auto: another one everyone gets - protects you in case you are liable for an accident or damage, or your car is damaged/stolen, paying for rental if your car in unavailable, etc.

Life: protects beneficiary who may be dependent on you, or because you want someone to have money when you die. Two major types: Term and Universal (this last type can be used as investment vehicle).

Disability: Two types - short term and long term to cover exactly that; help you financially if you are incapacitated and have bills to pay or family to support.

Homeowners: protects home owners if something happens to the wonderful place they call home. Multiple coverages within that spectrum, like roof/wind damage, etc.

Flood: in case your home floods - we are seeing how you don't have to be next to an ocean to be flooded, and because Homeowners insurance won't cover damage or rebuilding.

Renters: pays for personal property in case of damage; Homeowners insurance covers the landlord/owner but not tenants' contents in the house.

Long-term Care (LTC): People have Auto and Life, but no LTC - crazy! This is the one type that actually protects YOU + your family who will have to care for when the time comes.

Most think we won't need it or why pay all that money. Well, all of us will get old (no one will be spared).

A great financial tool to have especially if you don't have enough resources to pay for constantly increasing long term care costs - within your home or in an senior/assisted/memory care community/nursing home and you don't care about living in a Medicaid building or getting Medicaid to pay for your care at home.

Umbrella: extra protection as you get into assets like rental property; protects you from liability/legal costs that is not paid by other forms of insurance.

Supplemental: Aflac, Colonial, etc that pays you a lumpsum (doesn't mean large) if you are diagnosed with cancer/etc, or covers short term disability, dental care, etc.

Identity Theft: in today's crazy world where company data containing your personal and private info seems to get compromised more often than it should.

Travel: in case your bags are lost during travel, or you have to cancel a trip that is paid for, etc.

Whatever you do, PLEASE PLEASE use an agent referred by someone you trust to understand if an insurance type applies to your life situation (everyone's life is unique even if there are similarities, so don't follow blindly). AND PLEASE PLEASE re-evaluate your needs on a regular basis (after major events vs the standard every year maybe?)
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