Most people focus on growing their wealth through saving, investing, and planning…but protecting what you’ve already built is equally important. Many families overlook insurance until it’s too late. An unexpected accident, illness, or disaster can drain years of savings within days (Kiplinger).
Think of insurance as the defensive line in your financial game plan. It might not feel thrilling, but it can help provide stability when life throws its hardest hits. Here are eight types of coverage that some financial professionals consider when developing a protection plan:
1. Term Life Insurance
If someone depends on your income, life insurance may be appropriate. According to some sources, a term policy lasting 15 to 20 years with coverage equal to 10-12 times your annual income may be suggested, but the appropriate amount varies depending on individual needs and financial circumstances (Ramsey Solutions; Investopedia).
2. Auto Insurance
Even a single accident can cost thousands. Adequate liability coverage can help protect not just your vehicle, but also your financial well-being in the face of a serious collision (MarketWatch). Policy terms, costs, and state requirements vary.
3. Homeowners or Renters Insurance
Your home and belongings are among your biggest assets. Fires, storms, and break-ins are risks that can create significant expenses, and replacing everything out-of-pocket can be devastating (Kiplinger). Coverage options, deductibles, and exclusions differ by provider and policy.
4. Health Insurance
Medical expenses are a major driver of financial hardship in the U.S. A single hospital stay can create significant debt, making health insurance a common tool for managing this risk (Kiplinger). Coverage availability, costs, and benefits depend on provider and plan.
5. Long-Term Disability Insurance
Your ability to earn income is often a person’s greatest financial asset. Disability insurance may help replace lost income if illness or injury prevents you from working, supporting ongoing coverage of expenses (Investopedia). Policy features and availability vary.
6. Long-Term Care Insurance
As we age, the likelihood of needing long-term care increases. For some households, planning for long-term care through insurance can help offset potential costs, but premiums may be significant, and policies are not suitable for everyone. When it comes time to consider, many families benefit from meeting with a Long-Term Care Agent for guidance.
7. Identity Theft Protection
Identity theft can disrupt finances and daily life. Over 750,000 cases were reported in just the first half of 2025. Protection services can provide monitoring tools and recovery resources (SeniorLiving.org). Effectiveness and costs vary by provider.
8. Umbrella Insurance
If your net worth exceeds a certain threshold, umbrella insurance can provide additional liability coverage beyond home and auto policies. While relatively inexpensive in some cases, the need for umbrella insurance depends on your assets, liabilities, and overall risk tolerance.
Don’t Wait for a Crisis
Preparing ahead isn’t about expecting the worst, it’s simply about being ready for it. By putting the right protection in place today, you can safeguard your savings, shield your family, and face the future with confidence.
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