An Insurance Coverage Checklist

Life is full of risks, and insurance is designed to help you prepare for them. When deciding what type of insurance coverage to buy, you need to look at your circumstances and determine the policies that work best for your situation. Everyone's circumstances are different, and that means there are a variety of insurance products as well.

Automobile Insurance

• If you drive, you need to protect your vehicle and yourself with an automobile insurance policy. Drivers in most states are required by law to carry coverage, and, if you do not have it, you could be placing yourself and your personal assets at risk. Automobile insurance not only protects your vehicle, but it also protects you against personal liability resulting from an accident. When shopping for insurance, do not assume that the state mandated minimum coverage is sufficient. You may need additional coverage to protect your assets.

Homeowners or Renters Insurance

• If you own your home, you need to have insurance in place to protect it and your possessions from natural disasters, robberies and other catastrophic events. Homeowners insurance also provides a level of personal liability protection should someone be injured while on your property.

  Renters can protect themselves and their personal property with a renters insurance policy. While the landlord might have a policy in place on the property, chances are that policy does not protect your possessions, so a separate renters insurance policy is important.

Health Insurance

• Health insurance protects you from the high cost of hospital stays, rehabilitation and other medical procedures. If you work, you might be offered a health insurance policy through your employer. Otherwise, you will need to purchase one on your own in the individual market. If you are relatively healthy, you may be able to get a lower premium by taking out a high deductible policy that covers the cost of catastrophic care while you pay for routine needs like doctor visits.

Life Insurance

• If you have a family to protect, you should consider buying life insurance. The purpose of life insurance is to provide a benefit that your family members can use to replace money that you would have earned, allowing them to continue their normal standard of living even in your absence. Term life insurance is typically the least expensive, but you also can purchase whole life, which combines an investment vehicle with the normal death benefit. LifeInsure.com recommends carrying a death benefit equal to 10 to 25 times your salary, depending on your age, to provide adequate protection for your loved ones.

Disability Insurance

• If you are hurt and can no longer work, disability insurance provides benefits until you are able to resume your occupation. Many employers provide a standard disability insurance policy as a benefits and may offer employees the opportunity to purchase additional coverage on their own.