Other Insurance

Because insurance companies regularly develop new products or update existing ones, you can buy insurance to cover almost every risk you face. The key is to weigh each potential risk against the coverage that's available.

Health insurance

Most people realize the importance of good health insurance, but if you've never had a serious illness, you may not be aware how expensive medical treatment is. Many people are covered by their jobs, but coverage can vary greatly. For example, some plans allow you to see any doctor, while others pay only for doctors within the plan's network. If you're covered through your job there's probably not a lot you can do to change your policy, but it's worth checking the details of your plan, so if you become ill you understand what's covered.

Renters insurance

Renters insurance protects your rented living space and possessions against damage or theft. If the apartment or home you rent is damaged by fire or a flood, for example, renters insurance can cover the cost of repairs and any costs that come from having to move into a hotel while your place is unlivable. Renters insurance also protects your possessions, including furniture and electronics, against damage or theft, reimbursing you either for the cost of replacing the items or their fair market value, which is likely to be less.

Credit insurance

Credit insurance covers the cost of your minimum monthly payments on any lines of credit if you're not able to meet what's due. You pay a premium each month, and if you become disabled or lose your job, the credit insurance kicks in to cover your minimum payments. That protects your credit history from reflecting a time of financial crisis. However, any balance over the minimum payment will continue to accumulate interest, so credit insurance doesn't replace the need for an emergency fund and careful financial planning.

And there are many other forms of insurance too, such as identity theft insurance and even pet insurance to cover veterinarian expenses. What's important to you may not be the same as what's important to someone else, so you'll have to carefully consider your own needs and the cost of the coverage when deciding the kinds and amounts of insurance you'd like to purchase.