What Different Types of Insurance Does My Family Need?



Keeping your family safe is a task that has only grown more and more difficult over the years as new problems arise with time. It can leave you feeling powerless and out of options.

However, one option that is available to you is insurance. But insurance also carries a hefty price tag at times, and it can be tempting to brush it aside and save the money for when you “really need it”. So how can you narrow down which types of insurance you need for your family?

Well, we’re glad you asked. It’s time to take a look at the different types of insurance your family needs! So without further ado, let’s begin!

Editor’s note: If you like this article, feel free to join the conversation and leave your comments at the bottom!
Check out for more on insurance tips.

The Different Types of Insurance and Why They Matter

The first type of insurance your family needs to have is health insurance. Though it’s one of the most expensive types, health insurance helps to pay off all the medical bills and doctor’s appointments your family has to deal with.

One reason to get this insurance is the staggering rise in the price of medical bills. One survey showed that the average cost of a day in the hospital was around $2500. That’s not even mentioning the high bankruptcy rates medical bills cause!

You can’t expect your family to live safe and healthy lives without money to put food on the table.

Another reason to hop on board the health insurance train is that it will incentivize you and your family to visit the doctor more frequently. This is because the trips won’t have such a high out-of-pocket cost. Your health will then improve, as doctors can catch medical problems you have before they can get worse (among other things).

If you’re worried about the cost, see if your employer offers health insurance as part of their benefits package or find a job that does. If not, you can qualify for a special tax deduction that cuts taxes in exchange for you fronting the cost of your healthcare insurance.

Worker’s Compensation

Branching off of health insurance is worker’s comp, a policy your employer should offer that will help pay your medical bills or supplement your income if you get injured while on the job. This includes everything from exposure to toxic materials to getting injured operating a company vehicle. If something fatal should happen to you at work, your family would get said benefits instead.

If you aren’t currently employed or will soon be leaving your current job, you can buy disability insurance for yourself and your family, which operates in a lot like worker’s comp.

Car Insurance

Next on our list is car insurance, which can be purchased as one set group or split into individual subtypes. The primary one you’ll need is auto liability coverage, which helps pay for any damage you do to other people or their property while driving. This one is mandated by state law (except in Virginia and New Hampshire), and you risk losing your license and high fees if you drive without it.

For extra protection, comprehensive coverage will help pay for any damage done to your vehicle by factors outside your control (i.e, weather). Medical payments coverage will help deal with any medical bills you incur for you or your passengers getting injured in a car crash. Some states do make an extra layer of car insurance a legal requirement, so make sure you do your homework so you don’t get on the wrong side of the law.

Life Insurance

If you are the one who brings in the income for your family, life insurance is critical for ensuring your family doesn’t get left in the dust if something terrible was to befall you. Not only will life insurance help pay for any fees that come up with your burial or funeral, but they will also provide your family with extra money to compensate for the lost income due to your passing.

If you live alone or don’t have a spouse, however, this is one insurance you can skip.

Homeowner’s/Renter’s Insurance

To keep your family happy and healthy, having a place for them to stay is rather critical. Homeowner’s insurance helps out with that by covering your home against any theft or damage made by people that occurs to your property (you’ll need to purchase an additional level of homeowner’s insurance to get protection from natural disasters like tsunamis or earthquakes).

Homeowner’s insurance will also give you financial protection if someone happens to get injured while on your property, which can help save you from some serious bills if the guy cutting branches off your tree slips and falls.

For those who don’t own their house but instead rent an apartment, renter’s insurance is the choice for you. This insurance covers most of the same stuff as home insurance, but for your rented property. However, insurance against natural disasters or damage to very valuable goods does not exist for renters. To compensate though, renter’s insurance tends to have a low price tag.

Long-Term Care Insurance

Finally, long-term care insurance is the best policy to have in the event you or a family member suffers a serious illness that makes basic day-to-day tasks difficult. This can also count for people too old to care for themselves.

The insurance will cover the expenses of daily activities like eating and bathing. However, you have to have the policy before someone gets sick, not after.

The policy is by no means a “pay for everything” card. But, if someone in your family is at an old age or a high risk for neurological diseases like Parkinson’s disease, this policy will prove essential.

The Best in Family Protection

And there you have it! Now that you know all about the different types of insurance you need for your family, you’re ready to get out there and rest a little easier knowing you’ve got financial protection in case anything goes wrong! And for more news on keeping your finances looking strong as well as insurance, check out some of the other posts on our blog!