Insurance You Need – And Don’t
Protecting yourself from the unexpected
No one thinks they need insurance—until they actually need it. Don't make the mistake of putting it off completely. Some types of insurance are essential at any age. Some make sense as you get older. And some make no sense at all.
- Health insurance—Health coverage is an absolute must. A serious injury or surgery that might require a hospital stay can set you back thousands of dollars. If you're not covered by an employer's policy, look into other low-cost options.
- Auto insurance—Most states require you to have at least basic liability insurance to cover damage you may do to others, including both bodily injury and property damage.
- Renters insurance—A landlord’s policy will only cover damage to the dwelling, not to your possessions. A renters policy usually covers events such as fire, theft and vandalism and may protect you from damage due to things like faulty wiring, water or weather. This coverage is generally inexpensive but important.
- Disability insurance—Disability insurance covers your employment income if you get sick or injured and can’t work. It is often available through your employer, and that may be enough to cover you at this stage. You could also consider individual disability insurance policies now or in the future.
For future consideration
- Life insurance—You don't really need life insurance until you have dependents of your own. If you have dependents, a term policy is probably your best bet for cost and coverage.
Rarely worth it
- Car rental insurance—This is usually covered by your own auto insurance and by some credit cards.
- Pet insurance—Premiums can often cost more than average pet care.
- Flight insurance—Adequate health and life insurance is all most people need.
- Life insurance for kids—Remember, life insurance is for those who have dependents.
- Wedding insurance, cancer insurance and mortgage life insurance—All are types you can safely avoid.