Insurance protects you and your family from events you do not expect. Everyone needs insurance
• to pay for health care
• to help your family after you die
• to protect your home against theft, damage, or lawsuits
• to fix your car after an accident, pay for injuries, or to protect you against law suits.

The list below names the types of insurance everyone should own:

Life Insurance. Life insurance gives money to your loved ones when you die. It is important if you are married and even more important if you support children. The most common types of life insurance are:
• Term life insurance covers you for a period of time, like 10, 20 or 30 years. It pays a fixed amount of money to your loved ones if you die during the term of the policy. It is often cheaper than whole life insurance. However, the cost goes up as you get older.
• Whole life insurance is permanent insurance. It gives you a guaranteed death benefit for your life. Some whole life insurance policies pay dividends that increase the policy's death benefit. Dividends are not guaranteed.

Health Insurance. Health insurance pays your doctor and hospital bills in case of sickness or injury. Without it, you might lose everything from just one serious illness or accident. Many people receive health insurance through their employer. Employers often pay part of the cost. The employee pays the rest. You also can buy health insurance on your own for you and your family.

Disability Insurance. Disability coverage pays you part of your income when you cannot work because of illness or injury. Most policies replace 60% to 80% of your income. (Social Security and Workers Compensation also provide disability benefits for sickness and injury.)

Homeowners and Renters Insurance. Homeowners insurance protects your investment in your home. It pays you for damages or theft to your home and its contents. Renters insurance protects the contents of your home from damage or theft. Both types of these policies protect you from being sued if someone gets hurt on your property. It is wise to insure your home for 100% of what it costs to replace the house and its contents. However, it costs more.

Auto Insurance. Auto insurance is more than insuring your car or truck for loss or repairs after an accident. It is a financial safety net that can help you with the cost of injuries to yourself or others. It also covers lost wages due to injury and lawsuits brought against you as the result of an accident. Most states require the purchase of basic coverage. Then you decide how much extra insurance you need.
Insurance is a basic protection for you and your family. There are organizations in your community to help you find honest people and companies to sell you the insurance you need and can afford. Ask your instructor for help

Source: Federal Citizen Information Center