What Insurance Is Really For

Insurance isn’t designed to cover every inconvenience. Its job is to protect you from major financial loss — the kind that would be difficult or impossible to pay out of pocket. When you think of insurance this way, it becomes easier to decide which policies matter most.

Health Insurance Comes First

Health insurance is one of the most important types of coverage. Medical expenses can add up quickly, and even routine care can become expensive without insurance.
Health insurance helps cover:

• Doctor visits

• Hospital stays

• Prescriptions

• Emergency care
  If you can only prioritize one type of insurance, this should be it.

Home and Renters Insurance Protect Your Space

If you own a home, home insurance is essential. It protects the structure of your property and your belongings in case of damage or loss.
If you rent, renters insurance is often overlooked but very important. It covers:

• Personal belongings

• Theft

• Fire or water damage

• Liability if someone is injured in your space
  Renters insurance is usually affordable and provides strong protection for everyday risks.

Car Insurance Is Often Required

If you own a car, car insurance is usually mandatory. Beyond legal requirements, it protects you from costly repairs, accidents, and liability claims.
Key components include:

• Liability coverage

• Collision coverage

• Comprehensive coverage
  The right level depends on your vehicle’s value and your driving habits.

Life Insurance Depends on Your Situation

Life insurance isn’t necessary for everyone. It becomes important if others depend on your income — such as children, a partner, or family members.
If no one relies on your income, you may not need it yet.
If you do need coverage, term life insurance is often simpler and more affordable than permanent policies.

Disability Insurance Is Often Overlooked

Disability insurance replaces part of your income if you’re unable to work due to illness or injury. Many people underestimate this risk, even though it’s more common than expected.
If your job depends on your ability to work physically or mentally, this coverage can be valuable.

Insurance You May Not Need

Some insurance products offer limited value for their cost.
These often include:

• Extended warranties

• Credit card payment protection plans

• Overlapping travel insurance

• Gadget insurance for low-value items
  Before buying, ask whether you could cover the cost yourself instead.

How to Avoid Overpaying

A few simple steps help you get the right coverage at the right price:

• Compare providers regularly

• Review policies annually

• Bundle insurance where possible

• Increase deductibles if affordable

• Avoid duplicate coverage
  Insurance should protect you, not drain your budget.