8 Types of Insurance You Should Have by 50

While no one can predict the future, you can take action to protect your financial future from the unexpected by purchasing the appropriate insurance policies. Without the right insurance policies in place, an unfortunate incident could change your financial trajectory for the worse.

Nearly every state requires car insurance , but there are other types of insurance you will need as your life gets more complicated.

Here are the top types of insurance you might need.

1. Health insurance

Health insurance is a basic type of insurance that helps you pay for medical expenses. Since an unexpected health issue or serious illness could lead to catastrophic bills, it’s critical to have the coverage in place.

Although many Americans choose to go without coverage, likely due to the high premiums, skipping health insurance could have disastrous consequences. Just over half of adult Americans get health insurance through their employer. Many employers offer a cost-sharing model to make your premiums more affordable.

But if you don’t have access to employer-sponsored healthcare, then shop around for coverage using the federal Marketplace.

2. Car insurance

Almost every state requires drivers to purchase a minimum level of car insurance. If you get behind the wheel on a public road without the necessary amount of coverage, you could face serious financial consequences.

At a minimum, you’ll likely need to carry property damage liability and bodily injury liability coverage. Each will help you pay for damage or injuries you cause to others in an accident.

But if you want to help pay for your own repairs after an accident, you’ll need to purchase comprehensive and collision coverage too.

3. Life insurance

If you have dependents, you should have life insurance. If you pass away, life insurance is designed to provide your dependents with financial support.

There are two types of life insurance: whole life or term life. Whole life is a more complex product that covers you for your entire life with a death benefit and cash value. A basic term life policy, which provides coverage for a set amount of time, is sufficient for most people.

For example, you might opt for a term life policy with enough coverage to pay off your outstanding mortgage balance or cover your child’s college costs. If you aren’t there to provide financial support for your family, the term life insurance policy will help them stay afloat financially.

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4. Renters/homeowners insurance

Whether you own or rent your home, property insurance provides a key way to protect your assets.

Most homeowners with a mortgage are required to carry homeowners insurance, which could help you rebuild or repair your house after an incident. Additionally, most homeowners insurance policies cover some of the contents of your home.

As a renter, your renters insurance policy can help you replace the items that are damaged or stolen within your rental.

5. Disability insurance

If you aren’t able to work anymore or for a period of time, disability insurance provides the income you rely on. In general, disability insurance policies provide income replacement for between 40% to 70% of your income.

Unless you’re independently wealthy, disability insurance is the way to protect your income.

6. Long-term care insurance

As we age, many need help with daily living tasks. Although many may need the services offered by a skilled-care facility, the costs associated with this level of care are often out of reach for most budgets.

The good news is that long-term care insurance offers a way to protect your financial future. If you need to move into an assisted living facility or tap into other long-term care services, long-term care insurance can help you cover the cost.

Also, the younger you are when you purchase this insurance, the less expensive it will be.

7. Pet insurance

Most pet owners are familiar with unexpected vet bills. Pet insurance can be a game-changer if you don’t have a robust emergency fund to cover a potential vet bill. Many pet insurance policies offer a way to cover unexpected illnesses and injuries.

Before signing up for pet insurance, read the fine print to confirm you understand the coverage. In most cases, routine vet care isn’t covered.

8. Travel insurance

Travel insurance protects your wallet from the disappointment of a canceled or interrupted trip. For travelers who see the possibility of canceling a trip or worry about the costs associated with getting sick abroad, travel insurance offers peace of mind.

As you plan future trips, consider adding travel insurance to your trip planning costs.

Bottom line

The right selection of insurance policies is a smart money move and can provide financial protection. Regardless of the policies you are shopping for, make sure to shop around. Different insurance companies offer different premiums. And most insurers offer some discounts, which you might be able to tap into.

If you have questions about which type of insurance you need, work with an insurance agent to evaluate your financial situation and how you can best protect yourself and your family.

Money tips that can work for everyone

No matter what your bank account balance is, there's always an opportunity to optimize and improve your finances. Here's a quick checklist of things you can look at today.

Focus on paying off your debt . Debt can hold you back from making progress with your overall financial well-being. Aside from cutting expenses, there are tools that can help you pay off debt faster like balance transfer credit cards and debt counseling.

Earning extra income can give you breathing room. If finances are tight, earning some extra money to supplement your income can make a huge difference. A new job is one option to consider, but if you're not ready to make a big change or already retired, a part-time side job could be a better choice.

Cut your expenses. It sounds painful and so not fun, but it doesn't have to be. Take a look at your biggest expenses because that's where you'll probably find the biggest savings. For example, auto insurance rates have been soaring so shopping around for a new insurance company can be the fastest way to cut your bill. Also, look for ways to cut your grocery bill (despite rising inflation).