5 Insurance Products You Should Have (but Don’t)

Buying insurance is like picking a car: you choose options wisely and keep it until it is time to trade up. That said, there are five insurance products you know you need, but probably do not have right now. Buy them before it is too late!

1. Life Insurance or Burial Insurance

The family's breadwinner must have life insurance. If you have children or a spouse who rely on all or part of your income for daily expenses, it is crucial to provide financial protection in the event of your death. If your dependents are all grown up and have their own families, and if you have a nest egg in place that fiscally benefits a spouse or partner, a burial insurance plan prepays your final expenses.

2. Renter's or Homeowner's Insurance

Protect your plasma TV, wedding dress and antique chess piece collection as well as your spiffy new computer setup by insuring the content of your home. It does not matter if you are a renter or homeowner; fire, flood or thefts affect any resident. Be sure to periodically update the policy to include new purchases and exclude property you disposed of.

3. Disability Insurance

Most anyone knows that health insurance is vital for staying or getting well, but if there should be a case when an injury or condition makes the breadwinner unable to work, how will the income continue to be earned? Sure, the worker can initially use sick time and vacation days, but once they run out, there are no more paid days left. Short- and long-term disability coverage deals with the eventuality of the inability to work for a prolonged period of time.

4. Comprehensive Automotive Coverage

If you own the pink slip to your car, you no longer have to carry comprehensive coverage to protect the lender's stake in the investment. It is tempting to downgrade the automotive coverage when it is no longer required. While states dictate minimum levels of car insurance, it is wise to add optional comprehensive coverage as well. Unless you are in a financial position to easily replace the vehicle in case of theft, fire, weather-related incidents or close encounters with wildlife, this policy add-on protects your wallet.

5. Pet Insurance

Having a dog or cat is a lot of fun -- until Rover or Fluffy swallows something that needs to be surgically removed. Aging pets may encounter health challenges associated with cancer, systemic diseases or chronic ailments. Although pet insurance does not fully pay for all of the treatments, it offers at least a percent-based reimbursement of covered treatments and procedures. In many cases, this type of policy makes it possible to pay for even costly treatments that would otherwise not be affordable.

Remember that each of these insurance products calls for due diligence on the part of the consumer. Policies differ and the fine print reveals limitations of coverage. Compare and choose wisely!