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1. Shard Calculation

Query:

Response:

Calculated Shard: 148 (from laksa173)

2. Crawled Status Check

Query:

curl -X POST \
  'http://laksa148.int.ahrefs:8124/' \
  -H 'Content-Type: text/plain' \
  -H 'X-ClickHouse-Database: crawler3' \
  -H 'Authorization: Basic YXBpOg==' \
  -d 'SELECT getAhrefsURLFromUnparsed(src_unparsed) AS found_url, ifNull(toUnixTimestamp(download_stamp), 0) AS crawl_time, ifNull(toUnixTimestamp(props_url_first_seen), 0) AS first_indexed_time, download_http_code AS http_code, src_unparsed AS src_unparsed, src_root_hash AS src_root_hash, history_drop_reason AS history_drop_reason, meta_title AS meta_title, meta_descriptions AS meta_descriptions, attrs_boilerpipe_text AS attrs_boilerpipe_text, attrs_markdown AS attrs_markdown, attrs_readable_markdown AS attrs_readable_markdown, meta_canonical AS meta_canonical FROM crawler3.page_info_local FINAL PREWHERE (src_root_hash, src_unparsed) IN ((getAhrefsRootHashFromUnparsed(getAhrefsUnparsedNoserviceFromURL(\'https://www.investopedia.com/insurance/insurance-policies-everyone-should-have/\')), getAhrefsUnparsedNoserviceFromURL(\'https://www.investopedia.com/insurance/insurance-policies-everyone-should-have/\'))) FORMAT JSONEachRow'

Response:

{"found_url":"https:\/\/www.investopedia.com\/insurance\/insurance-policies-everyone-should-have\/","crawl_time":1776118818,"first_indexed_time":1514430522,"http_code":200,"src_unparsed":"com,investopedia!www,\/insurance\/insurance-policies-everyone-should-have\/ s443","src_root_hash":"7273739457760125548","history_drop_reason":null,"meta_title":"5 Essential Insurance Policies for Comprehensive Asset Protection","meta_descriptions":["Discover essential insurance policies that safeguard your finances—health, life, car, home, and disability insurance—and learn expert tips for purchasing them."],"attrs_boilerpipe_text":"Key Takeaways\nDisability insurance can ensure you maintain your lifestyle if you can't work.\nLife insurance is vital for protecting those financially dependent on you.\nHealth insurance is essential, even for healthy young individuals.\nAn umbrella policy increases liability coverage beyond existing policy limits.\nThe cost of life insurance varies by policy type and personal factors.\nAn\ninsurance\npolicy can protect you from the hazards of normal life, from floods and fires to car accidents and life-threatening illnesses. You can't stop disasters from happening, but a good insurance policy can provide financial coverage for these unexpected expenses.\nProtecting your most important assets is an important step in creating a solid personal financial plan. Here are five policies you shouldn't do without, to help protect your assets and save you money.\n1. Understanding Long-Term Disability Insurance\nThe prospect of long-term disability (LTD) is so frightening that some people choose to ignore it. While we all think that \"nothing will happen to me,\" relying on hope to protect your future earning power is not a good idea. Instead, choose a disability policy that\nprovides enough coverage\nto enable you to enjoy your current lifestyle even if you can no longer continue working. \nLong-term disability provides a monetary benefit equal to a portion (e.g., 50% or 60%) of the insured's salary for covered disabilities. Long-term disability typically begins when\nshort-term disability\nends. To receive benefits, the disability must have occurred after the policy's issuance and then, typically after a waiting period. You will need to provide medical information, often confirmed by a physician, to the insurer for consideration.\nMost\nlong-term disability insurance policies\ncategorize disabilities as own occupation or any occupation.\nOwn occupation means the insured, due to disability, is unable to perform their regular job or a similar job. Any occupation means the insured, due to disability, is unable to perform any job for which they are qualified.\nSimilar to short- and long-term disability insurance,\nworkers' compensation\n, or workers' comp, pays a monetary benefit to workers who become injured or disabled at work or while performing their jobs. Most states require employers to carry workers' compensation insurance for their employees. In exchange, employees may not sue their employer for negligence.\nWhile long-term disability insurance and workers' compensation insurance both pay for disabilities, long-term disability insurance is not limited to disabilities or injuries occurring at work or while working.\n2. An Introduction to Life Insurance\nLife insurance\nprotects the people who are financially dependent on you. If your parents, spouse, children, or other loved ones would face financial hardship if you died, you should place life insurance high on your list of priorities.\nThink about how much you earn each year (and the number of years you plan to remain employed), and\npurchase a policy to replace that income\nin the event of your untimely demise.\n3. A Guide to Health Insurance Coverage\nThe soaring cost of medical care is reason enough to make\nhealth insurance\na necessity. Even a simple visit to the family doctor can result in a hefty bill. More serious injuries that result in a hospital stay can generate a bill that tops the price of a one-week stay at a luxury resort. Injuries that require surgery can quickly rack up five-figure costs.\nAlthough the cost of health insurance is a financial burden for just about everyone, the\npotential cost of not having coverage\nis much higher. \n4. Navigating Homeowners Insurance Policies\nReplacing your home is an expensive proposition. Having the right\nhomeowners insurance\ncan make the process less difficult. When shopping for a policy, look for one that covers the replacement of the structure and the contents, in addition to the cost of living somewhere else while your home is repaired. \nKeep in mind that the cost of rebuilding doesn't need to include the cost of the land since you already own it. Depending on the age of your home and the amenities it contains, the\ncost to replace\nit could be more or less than the price you paid for it. To get an accurate estimate, find out what local builders charge per square foot and multiply that number by the amount of space you will need to replace. Don't forget to factor in the cost of upgrades and special features. Also, be sure that the policy covers the cost of any liability for injuries that might occur on your property.\nRenters Insurance\nRenters also need peace of mind that they will be made whole in the event of a loss. Fortunately,\nrenters insurance\nis a type of property insurance available to people who rent or lease properties. This insurance provides coverage for personal belongings, liability, and additional living expenses for covered losses.\nFor one property, there may be two types of property coverage: homeowners insurance and renters insurance. However, homeowners insurance does not cover the personal property of the tenant. Therefore, lessees need to obtain renters insurance to protect their assets.\nAlthough renters insurance differs from homeowners insurance, they have the same components: coverage A for the dwelling, B for other structures, C for personal property, D for additional living expenses (also known as loss of use), E for liability, and F for medical payments.\nBecause renters are not responsible for insuring the dwelling or other structures, coverages A and B are often set to $0.\nCoverage C covers the personal property of the renter. Coverage D provides additional benefits for living expenses in the event of a loss. For example, if the renter is displaced from the home due to a fire, Coverage D covers the cost of living elsewhere, such as hotel and food expenses. Coverage E provides coverage for injuries and property damage caused by the insured, and Coverage F covers medical expenses for guests of the renter on the property with permission.\nTip\nSome insurers won't issue renters insurance policies to renters who own certain dog breeds, like pit bulls.\n5. Exploring Automobile Insurance Options\nSome level of\nautomobile insurance\nis required by law in most places. Even if you are not required to have it, and you are driving an old clunker that has been paid off for years, automobile insurance is something you shouldn't skip.\nIf you are involved in an accident and someone is injured or their property is damaged, you may be subject to a lawsuit that could cost you everything you own. Accidents happen quickly, and the results are often tragic. Having no automobile insurance, or purchasing only the minimum required coverage, saves you only a tiny amount of money and puts everything else you own at risk.\nImportant\nIn addition to the policies listed above, business owners need\nbusiness insurance\n. Liability coverage in a litigation-happy society could be the difference between a long, prosperous endeavor and a trip to bankruptcy court.\nTips for Shopping Insurance Wisely\nInsurance policies come in a variety of shapes and sizes and boast many different features, benefits, and prices. Shop carefully, read the policies, and talk to a licensed insurance professional to be certain you understand the coverage and the cost. Make sure the policies you purchase are adequate for your needs, and don't sign on the dotted line until you are happy with the purchase.\nConsider enlisting the service of an insurance broker\n, as they can search for policies across several insurance companies to find coverage that best suits your needs. Ask the broker to provide you with several options so you can compare features, provisions, and rates. Be in control of your protection by being well-informed to make a decision.\nWhat Is a Whole Life Insurance Policy?\nA\nwhole life insurance\npolicy is a permanent life insurance policy in which death benefits are paid upon the death of an insured. The whole life policy remains in force for the life of the insured as long as premiums are up to date. In addition to death benefits, whole life policies build cash value, which can be accessed during the insured's lifetime.\nWhat Is a Universal Life Insurance Policy?\nA\nuniversal life (UL) insurance\npolicy is permanent life insurance that allows the policyholder to invest their cash value in a separate account, which features funds tied to the stock market. It is a flexible policy, whereby premiums and death benefits can be adjusted.\nHow Do You Cancel an Insurance Policy?\nA policyholder must cancel an insurance policy according to the cancellation provisions of their contract. Often, insurers allow policyholders to cancel by phone; however, some require the request in writing.\nWhat Is an Umbrella Insurance Policy?\nAn\numbrella policy\nis liability insurance that provides additional coverage in excess of the policyholder's current policy limits. For example, if damages exceed the limits of a policyholder's property insurance (e.g., home or auto), the umbrella policy will provide the additional liability coverage, up to policy limits. This type of insurance most benefits those with sizable assets, which could be subject to seizure.\nHow Much Does a $1 Million Life Insurance Policy Cost?\nThe cost of a $1 million life insurance policy varies according to the type of life insurance issued—whole or term, the insured's age, the insured's health, and other underwriting factors. It could range from a few hundred to thousands of dollars. The best way to find out how much a $1 million policy costs you is to get quotes from a life insurance agent or broker.\nWhat Is the Cash Value of a Life Insurance Policy?\nThe\ncash value of a life insurance policy\nis the amount in excess of the premiums that has accumulated in the policy. Cash value is the savings component of a permanent life insurance policy that accumulates interest and can be accessed by the policy's owner in the form of a cash withdrawal or a loan.\nWhat Is the Declarations Page of an Insurance Policy?\nAn insurance policy's\ndeclarations page\nis the part of the insurance contract that includes the general policy information. This page lists the policy owner, insured, the face amount of coverage, and terms and conditions.\nThe Bottom Line\nIn life, losses are inevitable, and the degree to which these losses impact our lives varies. Insurance lessens the impact by providing financial benefits for covered losses. There are many types of insurance available, but there are some which top the charts in terms of importance. Home or property insurance, life insurance, disability insurance, health insurance, and automobile insurance are five types that everyone should have.","attrs_markdown":"\n\n[Skip to content](https:\/\/www.investopedia.com\/insurance\/insurance-policies-everyone-should-have\/#main)\n\n[Investopedia](https:\/\/www.investopedia.com\/)\n\n[Trade](https:\/\/www.investopedia.com\/simulator\/?inv_to_sim=global_nav)\n\n- Please fill out this field.\n- [Newsletters](https:\/\/www.investopedia.com\/insurance\/insurance-policies-everyone-should-have\/)\n\nPlease fill out this field.\n\n- [News](https:\/\/www.investopedia.com\/news-4427706)\n  News\n  \n  - [Markets](https:\/\/www.investopedia.com\/markets-news-4427704)\n  - [Companies](https:\/\/www.investopedia.com\/company-news-4427705)\n  - [Earnings](https:\/\/www.investopedia.com\/earnings-reports-5218419)\n  - [CD Rates](https:\/\/www.investopedia.com\/certificates-deposit-news-7111770)\n  - [Mortgage 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Policy](https:\/\/www.investopedia.com\/government-and-policy-4689793)\n  - [Monetary Policy](https:\/\/www.investopedia.com\/monetary-policy-4689792)\n  - [Fiscal Policy](https:\/\/www.investopedia.com\/fiscal-policy-4689796)\n  - [Economics](https:\/\/www.investopedia.com\/economics-4689800)\n  - [View All](https:\/\/www.investopedia.com\/economy-4689801)\n- [Reviews](https:\/\/www.investopedia.com\/financial-product-reviews-7110783)\n  - [Best Online Brokers](https:\/\/www.investopedia.com\/best-online-brokers-4587872)\n  - [Best Crypto Exchanges](https:\/\/www.investopedia.com\/best-crypto-exchanges-5071855)\n  - [Best Savings Rates](https:\/\/www.investopedia.com\/high-yield-savings-accounts-4770633)\n  - [Best CD Rates](https:\/\/www.investopedia.com\/best-cd-rates-4770214)\n  - [Best Life Insurance](https:\/\/www.investopedia.com\/the-best-life-insurance-companies-8763666)\n  - [Best Mortgage Rates](https:\/\/www.investopedia.com\/mortgage-rates-5094943)\n  - [Best Robo-Advisors](https:\/\/www.investopedia.com\/the-best-robo-advisors-8764849)\n  - [Best Personal Loans](https:\/\/www.investopedia.com\/the-best-personal-loans-8761582)\n  - [Best Debt Relief Companies](https:\/\/www.investopedia.com\/the-best-debt-relief-companies-8763179)\n  - [View All](https:\/\/www.investopedia.com\/financial-product-reviews-7110783)\n\n- Top Stories\n- [How Many People Achieve \\$1M in Retirement Savings](https:\/\/www.investopedia.com\/how-many-people-really-achieve-usd1-million-in-retirement-savings-11947173)\n- [Nearly 60% Skip Medical Treatment Due to High Costs](https:\/\/www.investopedia.com\/nearly-60-skip-medical-treatment-due-to-high-costs-what-you-can-do-to-manage-your-health-and-budget-11947168)\n- [Retirement Planning by Generation: Compare Your Readiness](https:\/\/www.investopedia.com\/how-the-generation-differ-in-retirement-planning-and-what-you-can-learn-to-save-more-11947167)\n- [Average Income by Work Experience Compared](https:\/\/www.investopedia.com\/average-income-by-work-experience-uncovered-are-you-paid-what-you-deserve-11947171)\n\nTable of Contents\n\nExpand\n\nTable of Contents\n\n- [Long-Term Disability Insurance](https:\/\/www.investopedia.com\/insurance\/insurance-policies-everyone-should-have\/#toc-1-understanding-long-term-disability-insurance)\n- [Life Insurance](https:\/\/www.investopedia.com\/insurance\/insurance-policies-everyone-should-have\/#toc-2-an-introduction-to-life-insurance)\n- [Health Insurance](https:\/\/www.investopedia.com\/insurance\/insurance-policies-everyone-should-have\/#toc-3-a-guide-to-health-insurance-coverage)\n- [Homeowners Insurance](https:\/\/www.investopedia.com\/insurance\/insurance-policies-everyone-should-have\/#toc-4-navigating-homeowners-insurance-policies)\n- [Auto Insurance](https:\/\/www.investopedia.com\/insurance\/insurance-policies-everyone-should-have\/#toc-5-exploring-automobile-insurance-options)\n- [Insurance Shopping Tips](https:\/\/www.investopedia.com\/insurance\/insurance-policies-everyone-should-have\/#toc-tips-for-shopping-insurance-wisely)\n- [FAQs](https:\/\/www.investopedia.com\/insurance\/insurance-policies-everyone-should-have\/#toc-what-is-a-whole-life-insurance-policy)\n- [The Bottom Line](https:\/\/www.investopedia.com\/insurance\/insurance-policies-everyone-should-have\/#toc-the-bottom-line)\n\n# 5 Essential Insurance Policies for Comprehensive Asset Protection\nBy\n\n[Lisa Smith](https:\/\/www.investopedia.com\/contributors\/121\/)\n\n[Full Bio](https:\/\/www.investopedia.com\/contributors\/121\/)\n\nLisa Smith is a writer with a passion for financial journalism, contributing to popular media outlets like Investopedia and Bloomberg BNA.\n\nLearn about our  [editorial policies](https:\/\/www.investopedia.com\/legal-4768893#editorial-policy)\n\nUpdated March 29, 2026\n\nReviewed by\n\n[Eric Estevez](https:\/\/www.investopedia.com\/eric-estevez-4799782)\n\n![Eric Estevez]()\n\n![Eric Estevez](https:\/\/www.investopedia.com\/thmb\/ABs9H86FjAYSX2TyohG4Z6lYbKY=\/200x200\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/profile-EricEstevez-4439ff1611f74bbfbabfc9fa32af2072.jpg)\n\nReviewed by Eric Estevez\n\n[Full Bio](https:\/\/www.investopedia.com\/eric-estevez-4799782)\n\nEric's career includes extensive work in both public and corporate accounting with responsibilities such as preparing and reviewing federal, state, and local tax filings; supporting multinational teams on tax compliance and financial controls; managing bookkeeping, financial statements, and month-\/year-end-close; and advising business owners on financial management and operational strategy.\n\nLearn about our  [Financial Review Board](https:\/\/www.investopedia.com\/investopedia-financial-review-board-5076269)\n\n![Insurance policies you should have: life, health, homeowners, automobile, long-term disability](https:\/\/www.investopedia.com\/thmb\/3PpXXg_R0eoQ8laATA1VLH6o0e4=\/1500x0\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/insurance-policies-everyone-should-have.asp-c71cf03531814b0eaafa2d3b5b737ba2.jpg)\n\n![Insurance policies you should have: life, health, homeowners, automobile, long-term disability](https:\/\/www.investopedia.com\/thmb\/3PpXXg_R0eoQ8laATA1VLH6o0e4=\/1500x0\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/insurance-policies-everyone-should-have.asp-c71cf03531814b0eaafa2d3b5b737ba2.jpg)\n\nJessica Olah \/ Investopedia\n\nClose\n\n### Key Takeaways\n- Disability insurance can ensure you maintain your lifestyle if you can't work.\n- Life insurance is vital for protecting those financially dependent on you.\n- Health insurance is essential, even for healthy young individuals.\n- An umbrella policy increases liability coverage beyond existing policy limits.\n- The cost of life insurance varies by policy type and personal factors.\n\nAn [insurance](https:\/\/www.investopedia.com\/terms\/i\/insurance.asp) policy can protect you from the hazards of normal life, from floods and fires to car accidents and life-threatening illnesses. You can't stop disasters from happening, but a good insurance policy can provide financial coverage for these unexpected expenses.\n\nProtecting your most important assets is an important step in creating a solid personal financial plan. Here are five policies you shouldn't do without, to help protect your assets and save you money.\n\n## 1\\. Understanding Long-Term Disability Insurance\nThe prospect of long-term disability (LTD) is so frightening that some people choose to ignore it. While we all think that \"nothing will happen to me,\" relying on hope to protect your future earning power is not a good idea. Instead, choose a disability policy that [provides enough coverage](https:\/\/www.investopedia.com\/terms\/d\/diinsurance.asp) to enable you to enjoy your current lifestyle even if you can no longer continue working.\n\nLong-term disability provides a monetary benefit equal to a portion (e.g., 50% or 60%) of the insured's salary for covered disabilities. Long-term disability typically begins when [short-term disability](https:\/\/www.investopedia.com\/the-best-short-term-disability-insurance-11723341) ends. To receive benefits, the disability must have occurred after the policy's issuance and then, typically after a waiting period. You will need to provide medical information, often confirmed by a physician, to the insurer for consideration.\n\nMost [long-term disability insurance policies](https:\/\/www.investopedia.com\/the-best-long-term-disability-insurance-11699028) categorize disabilities as own occupation or any occupation. Own occupation means the insured, due to disability, is unable to perform their regular job or a similar job. Any occupation means the insured, due to disability, is unable to perform any job for which they are qualified.\n\nSimilar to short- and long-term disability insurance, [workers' compensation](https:\/\/www.investopedia.com\/terms\/w\/workers-compensation.asp), or workers' comp, pays a monetary benefit to workers who become injured or disabled at work or while performing their jobs. Most states require employers to carry workers' compensation insurance for their employees. In exchange, employees may not sue their employer for negligence.\n\nWhile long-term disability insurance and workers' compensation insurance both pay for disabilities, long-term disability insurance is not limited to disabilities or injuries occurring at work or while working.\n\n## 2\\. An Introduction to Life Insurance\n[Life insurance](https:\/\/www.investopedia.com\/terms\/l\/lifeinsurance.asp) protects the people who are financially dependent on you. If your parents, spouse, children, or other loved ones would face financial hardship if you died, you should place life insurance high on your list of priorities.\n\nThink about how much you earn each year (and the number of years you plan to remain employed), and [purchase a policy to replace that income](https:\/\/www.investopedia.com\/the-best-life-insurance-companies-8763666) in the event of your untimely demise.\n\n### Tip\n[Factor in the cost of burial, too](https:\/\/www.investopedia.com\/terms\/b\/burial-insurance.asp), as the unexpected expense is a burden for many families.\n## 3\\. A Guide to Health Insurance Coverage\nThe soaring cost of medical care is reason enough to make [health insurance](https:\/\/www.investopedia.com\/terms\/h\/healthinsurance.asp) a necessity. Even a simple visit to the family doctor can result in a hefty bill. More serious injuries that result in a hospital stay can generate a bill that tops the price of a one-week stay at a luxury resort. Injuries that require surgery can quickly rack up five-figure costs.\n\nAlthough the cost of health insurance is a financial burden for just about everyone, the [potential cost of not having coverage](https:\/\/www.investopedia.com\/articles\/personal-finance\/120815\/dont-have-health-insurance-whats-worst-could-happen.asp) is much higher.\n\n## 4\\. Navigating Homeowners Insurance Policies\nReplacing your home is an expensive proposition. Having the right [homeowners insurance](https:\/\/www.investopedia.com\/terms\/h\/homeowners-insurance.asp) can make the process less difficult. When shopping for a policy, look for one that covers the replacement of the structure and the contents, in addition to the cost of living somewhere else while your home is repaired.\n\nKeep in mind that the cost of rebuilding doesn't need to include the cost of the land since you already own it. Depending on the age of your home and the amenities it contains, the [cost to replace](https:\/\/www.investopedia.com\/terms\/r\/replacementcost.asp) it could be more or less than the price you paid for it. To get an accurate estimate, find out what local builders charge per square foot and multiply that number by the amount of space you will need to replace. Don't forget to factor in the cost of upgrades and special features. Also, be sure that the policy covers the cost of any liability for injuries that might occur on your property.\n\n### Renters Insurance\nRenters also need peace of mind that they will be made whole in the event of a loss. Fortunately, [renters insurance](https:\/\/www.investopedia.com\/terms\/r\/renters-insurance.asp) is a type of property insurance available to people who rent or lease properties. This insurance provides coverage for personal belongings, liability, and additional living expenses for covered losses.\n\nFor one property, there may be two types of property coverage: homeowners insurance and renters insurance. However, homeowners insurance does not cover the personal property of the tenant. Therefore, lessees need to obtain renters insurance to protect their assets.\n\nAlthough renters insurance differs from homeowners insurance, they have the same components: coverage A for the dwelling, B for other structures, C for personal property, D for additional living expenses (also known as loss of use), E for liability, and F for medical payments. Because renters are not responsible for insuring the dwelling or other structures, coverages A and B are often set to \\$0.\n\nCoverage C covers the personal property of the renter. Coverage D provides additional benefits for living expenses in the event of a loss. For example, if the renter is displaced from the home due to a fire, Coverage D covers the cost of living elsewhere, such as hotel and food expenses. Coverage E provides coverage for injuries and property damage caused by the insured, and Coverage F covers medical expenses for guests of the renter on the property with permission.\n\n### Tip\nSome insurers won't issue renters insurance policies to renters who own certain dog breeds, like pit bulls.\n## 5\\. Exploring Automobile Insurance Options\nSome level of [automobile insurance](https:\/\/www.investopedia.com\/terms\/a\/auto-insurance.asp) is required by law in most places. Even if you are not required to have it, and you are driving an old clunker that has been paid off for years, automobile insurance is something you shouldn't skip.\n\nIf you are involved in an accident and someone is injured or their property is damaged, you may be subject to a lawsuit that could cost you everything you own. Accidents happen quickly, and the results are often tragic. Having no automobile insurance, or purchasing only the minimum required coverage, saves you only a tiny amount of money and puts everything else you own at risk.\n\n### Important\nIn addition to the policies listed above, business owners need [business insurance](https:\/\/www.investopedia.com\/terms\/b\/business-insurance.asp). Liability coverage in a litigation-happy society could be the difference between a long, prosperous endeavor and a trip to bankruptcy court.\n## Tips for Shopping Insurance Wisely\nInsurance policies come in a variety of shapes and sizes and boast many different features, benefits, and prices. Shop carefully, read the policies, and talk to a licensed insurance professional to be certain you understand the coverage and the cost. Make sure the policies you purchase are adequate for your needs, and don't sign on the dotted line until you are happy with the purchase.\n\n[Consider enlisting the service of an insurance broker](https:\/\/www.investopedia.com\/terms\/b\/broker-of-record.asp), as they can search for policies across several insurance companies to find coverage that best suits your needs. Ask the broker to provide you with several options so you can compare features, provisions, and rates. Be in control of your protection by being well-informed to make a decision.\n\n## What Is a Whole Life Insurance Policy?\nA [whole life insurance](https:\/\/www.investopedia.com\/terms\/w\/wholelife.asp) policy is a permanent life insurance policy in which death benefits are paid upon the death of an insured. The whole life policy remains in force for the life of the insured as long as premiums are up to date. In addition to death benefits, whole life policies build cash value, which can be accessed during the insured's lifetime.\n\n## What Is a Universal Life Insurance Policy?\nA [universal life (UL) insurance](https:\/\/www.investopedia.com\/terms\/u\/universallife.asp) policy is permanent life insurance that allows the policyholder to invest their cash value in a separate account, which features funds tied to the stock market. It is a flexible policy, whereby premiums and death benefits can be adjusted.\n\n## How Do You Cancel an Insurance Policy?\nA policyholder must cancel an insurance policy according to the cancellation provisions of their contract. Often, insurers allow policyholders to cancel by phone; however, some require the request in writing.\n\n## What Is an Umbrella Insurance Policy?\nAn [umbrella policy](https:\/\/www.investopedia.com\/terms\/u\/umbrella-insurance-policy.asp) is liability insurance that provides additional coverage in excess of the policyholder's current policy limits. For example, if damages exceed the limits of a policyholder's property insurance (e.g., home or auto), the umbrella policy will provide the additional liability coverage, up to policy limits. This type of insurance most benefits those with sizable assets, which could be subject to seizure.\n\n## How Much Does a \\$1 Million Life Insurance Policy Cost?\nThe cost of a \\$1 million life insurance policy varies according to the type of life insurance issued—whole or term, the insured's age, the insured's health, and other underwriting factors. It could range from a few hundred to thousands of dollars. The best way to find out how much a \\$1 million policy costs you is to get quotes from a life insurance agent or broker.\n\n## What Is the Cash Value of a Life Insurance Policy?\nThe [cash value of a life insurance policy](https:\/\/www.investopedia.com\/terms\/c\/cash-value-life-insurance.asp) is the amount in excess of the premiums that has accumulated in the policy. Cash value is the savings component of a permanent life insurance policy that accumulates interest and can be accessed by the policy's owner in the form of a cash withdrawal or a loan.\n\n## What Is the Declarations Page of an Insurance Policy?\nAn insurance policy's [declarations page](https:\/\/www.investopedia.com\/terms\/c\/common-policy-declarations.asp) is the part of the insurance contract that includes the general policy information. This page lists the policy owner, insured, the face amount of coverage, and terms and conditions.\n## The Bottom Line\nIn life, losses are inevitable, and the degree to which these losses impact our lives varies. Insurance lessens the impact by providing financial benefits for covered losses. There are many types of insurance available, but there are some which top the charts in terms of importance. Home or property insurance, life insurance, disability insurance, health insurance, and automobile insurance are five types that everyone should have.\n\nArticle Sources\n\nInvestopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our [editorial policy.](https:\/\/www.investopedia.com\/legal-4768893#EditorialPolicy)\n\n1. Patient Advocate. \"[Long-Term Disability and Its Benefits](https:\/\/www.patientadvocate.org\/explore-our-resources\/maintaining-employment-employment-benefits\/long-term-disability-and-its-benefits\/).\"\n2. CBS News. \"[Most Expensive Medical Procedures in the U.S., Ranked](https:\/\/www.cbsnews.com\/pictures\/most-expensive-medical-procedures-without-insurance\/).\"\n3. Towne Insurance. \"[Seven Coverage Parts of Homeowners Insurance](https:\/\/www.towneinsurance.com\/personal\/personal\/property\/home\/parts\/).\"\n4. ValuePenguin. \"[How to Get Home or Renters Insurance with a Pit Bull.](https:\/\/www.valuepenguin.com\/homeowners-and-renters-insurance-with-a-pit-bull)\"\n\nRead more\n\n- [Personal Finance](https:\/\/www.investopedia.com\/personal-finance-4427760)\n- [Insurance](https:\/\/www.investopedia.com\/insurance-4427716)\n\nPartner Links\n\n## Related Articles\n[![Best Term Life Insurance Companies]() ![Best Term Life Insurance Companies](https:\/\/www.investopedia.com\/thmb\/mDFL25D9ROmdlWQ3rRIkOuh84FM=\/282x188\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/BestTermLifeInsuranceCompanies-final-b2106835adde47b1ac9cf2942968ad13.png) Best Term Life Insurance Companies of April 2026](https:\/\/www.investopedia.com\/the-best-term-life-insurance-8764257)\n\n[![woman on vacation]() ![woman on vacation](https:\/\/www.investopedia.com\/thmb\/Vr7zArAIEcRXy0mqzZsAFSL3nBI=\/282x188\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/Health-GettyImages-2131144931-f3d05b141d004ce0a51ea86de7365100.jpg) Best Travel Insurance Options for Every Type of Traveler in 2026](https:\/\/www.investopedia.com\/the-best-travel-insurance-11703963)\n\n[![Couple discussing their insurance coverage]() ![Couple discussing their insurance coverage](https:\/\/www.investopedia.com\/thmb\/y6gyPrXeeFdXL2P-HoJnH7cZSCs=\/282x188\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/InsuranceCoverageMajorTypesandHowTheyWork-9ae21165b20a4fa093b5dce8fd606131.jpg) Insurance Coverage Types Explained: Auto, Life, and Homeowner’s](https:\/\/www.investopedia.com\/terms\/i\/insurance-coverage.asp)\n\n[![Certificate of Insurance (COI): A document that verifies the existence of an insurance policy and summarizes its key aspects and conditions.]() ![Certificate of Insurance (COI): A document that verifies the existence of an insurance policy and summarizes its key aspects and conditions.](https:\/\/www.investopedia.com\/thmb\/Q4XF1akGaclxzvxBPXQhdNDHoqs=\/282x188\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/certificate_of_insurance.asp-final-1ea2d171486e4511af547e5d8c2b843a.png) Certificate of Insurance (COI): Essential Guide for Small Businesses](https:\/\/www.investopedia.com\/terms\/c\/certificate_of_insurance.asp)\n\n[![The-best-plan-g-medicare-supplement-providers]() ![The-best-plan-g-medicare-supplement-providers](https:\/\/www.investopedia.com\/thmb\/6h6wos7I_BzsShnqrAi3NwGBS3M=\/282x188\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/The-best-plan-g-medicare-supplement-providers-11743338_final-759ccc5211e14a9ea0e65040eb6d6208.png) Best Medicare Plan G Providers of 2026](https:\/\/www.investopedia.com\/the-best-plan-g-medicare-supplement-providers-11743338)\n\n[![A vet inspects a dog's mouth.]() ![A vet inspects a dog's mouth.](https:\/\/www.investopedia.com\/thmb\/KaSIbaJ2W0nWrHHT0tafpUOfN14=\/282x188\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/doggievet-0e56f8b9d4b14d649b7d4f034ea23e41.jpg) Does Pet Insurance Include ACL Surgery Coverage? 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50](https:\/\/www.investopedia.com\/thmb\/sJtgTeXoER8v4DKJpcFkxX2Pej8=\/282x188\/filters:no_upscale\$\$:max_bytes\$150000\$:strip_icc\$\$\/BestLifeInsuranceCompaniesforPeopleOver50-v1-fc89e590eeb74d7793c603929c149923.png) Best Life Insurance for People Over 50: Compare Top Providers](https:\/\/www.investopedia.com\/the-best-life-insurance-for-people-over-50-8765923)\n\n[Investopedia](https:\/\/www.investopedia.com\/)\n\n[Newsletter Sign Up](https:\/\/www.investopedia.com\/insurance\/insurance-policies-everyone-should-have\/)\n\nFollow Us\n\n- [News](https:\/\/www.investopedia.com\/news-4427706)\n- [Investing](https:\/\/www.investopedia.com\/investing-4427685)\n- [Simulator](https:\/\/www.investopedia.com\/simulator\/?inv_to_sim=global_nav)\n- [Banking](https:\/\/www.investopedia.com\/banking-4427754)\n- [Personal Finance](https:\/\/www.investopedia.com\/personal-finance-4427760)\n- [Economy](https:\/\/www.investopedia.com\/economy-4689801)\n- 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[S](https:\/\/www.investopedia.com\/terms-beginning-with-s-4769369)\n- [T](https:\/\/www.investopedia.com\/terms-beginning-with-t-4769370)\n- [U](https:\/\/www.investopedia.com\/terms-beginning-with-u-4769371)\n- [V](https:\/\/www.investopedia.com\/terms-beginning-with-v-4769372)\n- [W](https:\/\/www.investopedia.com\/terms-beginning-with-w-4769373)\n- [X](https:\/\/www.investopedia.com\/terms-beginning-with-x-4769374)\n- [Y](https:\/\/www.investopedia.com\/terms-beginning-with-y-4769375)\n- [Z](https:\/\/www.investopedia.com\/terms-beginning-with-z-4769376)\n\nInvestopedia is part of the [People Inc.](https:\/\/www.people.inc\/) publishing family.\n\nNewsletter Sign Up\n\nNewsletter Sign Up","attrs_readable_markdown":"### Key Takeaways\n- Disability insurance can ensure you maintain your lifestyle if you can't work.\n- Life insurance is vital for protecting those financially dependent on you.\n- Health insurance is essential, even for healthy young individuals.\n- An umbrella policy increases liability coverage beyond existing policy limits.\n- The cost of life insurance varies by policy type and personal factors.\n\nAn [insurance](https:\/\/www.investopedia.com\/terms\/i\/insurance.asp) policy can protect you from the hazards of normal life, from floods and fires to car accidents and life-threatening illnesses. You can't stop disasters from happening, but a good insurance policy can provide financial coverage for these unexpected expenses.\n\nProtecting your most important assets is an important step in creating a solid personal financial plan. Here are five policies you shouldn't do without, to help protect your assets and save you money.\n\n## 1\\. Understanding Long-Term Disability Insurance\nThe prospect of long-term disability (LTD) is so frightening that some people choose to ignore it. While we all think that \"nothing will happen to me,\" relying on hope to protect your future earning power is not a good idea. Instead, choose a disability policy that [provides enough coverage](https:\/\/www.investopedia.com\/terms\/d\/diinsurance.asp) to enable you to enjoy your current lifestyle even if you can no longer continue working.\n\nLong-term disability provides a monetary benefit equal to a portion (e.g., 50% or 60%) of the insured's salary for covered disabilities. Long-term disability typically begins when [short-term disability](https:\/\/www.investopedia.com\/the-best-short-term-disability-insurance-11723341) ends. To receive benefits, the disability must have occurred after the policy's issuance and then, typically after a waiting period. You will need to provide medical information, often confirmed by a physician, to the insurer for consideration.\n\nMost [long-term disability insurance policies](https:\/\/www.investopedia.com\/the-best-long-term-disability-insurance-11699028) categorize disabilities as own occupation or any occupation. Own occupation means the insured, due to disability, is unable to perform their regular job or a similar job. Any occupation means the insured, due to disability, is unable to perform any job for which they are qualified.\n\nSimilar to short- and long-term disability insurance, [workers' compensation](https:\/\/www.investopedia.com\/terms\/w\/workers-compensation.asp), or workers' comp, pays a monetary benefit to workers who become injured or disabled at work or while performing their jobs. Most states require employers to carry workers' compensation insurance for their employees. In exchange, employees may not sue their employer for negligence.\n\nWhile long-term disability insurance and workers' compensation insurance both pay for disabilities, long-term disability insurance is not limited to disabilities or injuries occurring at work or while working.\n\n## 2\\. An Introduction to Life Insurance\n[Life insurance](https:\/\/www.investopedia.com\/terms\/l\/lifeinsurance.asp) protects the people who are financially dependent on you. If your parents, spouse, children, or other loved ones would face financial hardship if you died, you should place life insurance high on your list of priorities.\n\nThink about how much you earn each year (and the number of years you plan to remain employed), and [purchase a policy to replace that income](https:\/\/www.investopedia.com\/the-best-life-insurance-companies-8763666) in the event of your untimely demise.\n\n## 3\\. A Guide to Health Insurance Coverage\nThe soaring cost of medical care is reason enough to make [health insurance](https:\/\/www.investopedia.com\/terms\/h\/healthinsurance.asp) a necessity. Even a simple visit to the family doctor can result in a hefty bill. More serious injuries that result in a hospital stay can generate a bill that tops the price of a one-week stay at a luxury resort. Injuries that require surgery can quickly rack up five-figure costs.\n\nAlthough the cost of health insurance is a financial burden for just about everyone, the [potential cost of not having coverage](https:\/\/www.investopedia.com\/articles\/personal-finance\/120815\/dont-have-health-insurance-whats-worst-could-happen.asp) is much higher.\n\n## 4\\. Navigating Homeowners Insurance Policies\nReplacing your home is an expensive proposition. Having the right [homeowners insurance](https:\/\/www.investopedia.com\/terms\/h\/homeowners-insurance.asp) can make the process less difficult. When shopping for a policy, look for one that covers the replacement of the structure and the contents, in addition to the cost of living somewhere else while your home is repaired.\n\nKeep in mind that the cost of rebuilding doesn't need to include the cost of the land since you already own it. Depending on the age of your home and the amenities it contains, the [cost to replace](https:\/\/www.investopedia.com\/terms\/r\/replacementcost.asp) it could be more or less than the price you paid for it. To get an accurate estimate, find out what local builders charge per square foot and multiply that number by the amount of space you will need to replace. Don't forget to factor in the cost of upgrades and special features. Also, be sure that the policy covers the cost of any liability for injuries that might occur on your property.\n\n### Renters Insurance\nRenters also need peace of mind that they will be made whole in the event of a loss. Fortunately, [renters insurance](https:\/\/www.investopedia.com\/terms\/r\/renters-insurance.asp) is a type of property insurance available to people who rent or lease properties. This insurance provides coverage for personal belongings, liability, and additional living expenses for covered losses.\n\nFor one property, there may be two types of property coverage: homeowners insurance and renters insurance. However, homeowners insurance does not cover the personal property of the tenant. Therefore, lessees need to obtain renters insurance to protect their assets.\n\nAlthough renters insurance differs from homeowners insurance, they have the same components: coverage A for the dwelling, B for other structures, C for personal property, D for additional living expenses (also known as loss of use), E for liability, and F for medical payments. Because renters are not responsible for insuring the dwelling or other structures, coverages A and B are often set to \\$0.\n\nCoverage C covers the personal property of the renter. Coverage D provides additional benefits for living expenses in the event of a loss. For example, if the renter is displaced from the home due to a fire, Coverage D covers the cost of living elsewhere, such as hotel and food expenses. Coverage E provides coverage for injuries and property damage caused by the insured, and Coverage F covers medical expenses for guests of the renter on the property with permission.\n\n### Tip\nSome insurers won't issue renters insurance policies to renters who own certain dog breeds, like pit bulls.\n## 5\\. Exploring Automobile Insurance Options\nSome level of [automobile insurance](https:\/\/www.investopedia.com\/terms\/a\/auto-insurance.asp) is required by law in most places. Even if you are not required to have it, and you are driving an old clunker that has been paid off for years, automobile insurance is something you shouldn't skip.\n\nIf you are involved in an accident and someone is injured or their property is damaged, you may be subject to a lawsuit that could cost you everything you own. Accidents happen quickly, and the results are often tragic. Having no automobile insurance, or purchasing only the minimum required coverage, saves you only a tiny amount of money and puts everything else you own at risk.\n\n### Important\nIn addition to the policies listed above, business owners need [business insurance](https:\/\/www.investopedia.com\/terms\/b\/business-insurance.asp). Liability coverage in a litigation-happy society could be the difference between a long, prosperous endeavor and a trip to bankruptcy court.\n## Tips for Shopping Insurance Wisely\nInsurance policies come in a variety of shapes and sizes and boast many different features, benefits, and prices. Shop carefully, read the policies, and talk to a licensed insurance professional to be certain you understand the coverage and the cost. Make sure the policies you purchase are adequate for your needs, and don't sign on the dotted line until you are happy with the purchase.\n\n[Consider enlisting the service of an insurance broker](https:\/\/www.investopedia.com\/terms\/b\/broker-of-record.asp), as they can search for policies across several insurance companies to find coverage that best suits your needs. Ask the broker to provide you with several options so you can compare features, provisions, and rates. Be in control of your protection by being well-informed to make a decision.\n\n## What Is a Whole Life Insurance Policy?\nA [whole life insurance](https:\/\/www.investopedia.com\/terms\/w\/wholelife.asp) policy is a permanent life insurance policy in which death benefits are paid upon the death of an insured. The whole life policy remains in force for the life of the insured as long as premiums are up to date. In addition to death benefits, whole life policies build cash value, which can be accessed during the insured's lifetime.\n\n## What Is a Universal Life Insurance Policy?\nA [universal life (UL) insurance](https:\/\/www.investopedia.com\/terms\/u\/universallife.asp) policy is permanent life insurance that allows the policyholder to invest their cash value in a separate account, which features funds tied to the stock market. It is a flexible policy, whereby premiums and death benefits can be adjusted.\n\n## How Do You Cancel an Insurance Policy?\nA policyholder must cancel an insurance policy according to the cancellation provisions of their contract. Often, insurers allow policyholders to cancel by phone; however, some require the request in writing.\n\n## What Is an Umbrella Insurance Policy?\nAn [umbrella policy](https:\/\/www.investopedia.com\/terms\/u\/umbrella-insurance-policy.asp) is liability insurance that provides additional coverage in excess of the policyholder's current policy limits. For example, if damages exceed the limits of a policyholder's property insurance (e.g., home or auto), the umbrella policy will provide the additional liability coverage, up to policy limits. This type of insurance most benefits those with sizable assets, which could be subject to seizure.\n\n## How Much Does a \\$1 Million Life Insurance Policy Cost?\nThe cost of a \\$1 million life insurance policy varies according to the type of life insurance issued—whole or term, the insured's age, the insured's health, and other underwriting factors. It could range from a few hundred to thousands of dollars. The best way to find out how much a \\$1 million policy costs you is to get quotes from a life insurance agent or broker.\n\n## What Is the Cash Value of a Life Insurance Policy?\nThe [cash value of a life insurance policy](https:\/\/www.investopedia.com\/terms\/c\/cash-value-life-insurance.asp) is the amount in excess of the premiums that has accumulated in the policy. Cash value is the savings component of a permanent life insurance policy that accumulates interest and can be accessed by the policy's owner in the form of a cash withdrawal or a loan.\n\n## What Is the Declarations Page of an Insurance Policy?\nAn insurance policy's [declarations page](https:\/\/www.investopedia.com\/terms\/c\/common-policy-declarations.asp) is the part of the insurance contract that includes the general policy information. This page lists the policy owner, insured, the face amount of coverage, and terms and conditions.\n## The Bottom Line\nIn life, losses are inevitable, and the degree to which these losses impact our lives varies. Insurance lessens the impact by providing financial benefits for covered losses. There are many types of insurance available, but there are some which top the charts in terms of importance. Home or property insurance, life insurance, disability insurance, health insurance, and automobile insurance are five types that everyone should have.","meta_canonical":null}

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Boilerpipe Text	Key Takeaways Disability insurance can ensure you maintain your lifestyle if you can't work. Life insurance is vital for protecting those financially dependent on you. Health insurance is essential, even for healthy young individuals. An umbrella policy increases liability coverage beyond existing policy limits. The cost of life insurance varies by policy type and personal factors. An insurance policy can protect you from the hazards of normal life, from floods and fires to car accidents and life-threatening illnesses. You can't stop disasters from happening, but a good insurance policy can provide financial coverage for these unexpected expenses. Protecting your most important assets is an important step in creating a solid personal financial plan. Here are five policies you shouldn't do without, to help protect your assets and save you money. 1. Understanding Long-Term Disability Insurance The prospect of long-term disability (LTD) is so frightening that some people choose to ignore it. While we all think that "nothing will happen to me," relying on hope to protect your future earning power is not a good idea. Instead, choose a disability policy that provides enough coverage to enable you to enjoy your current lifestyle even if you can no longer continue working. Long-term disability provides a monetary benefit equal to a portion (e.g., 50% or 60%) of the insured's salary for covered disabilities. Long-term disability typically begins when short-term disability ends. To receive benefits, the disability must have occurred after the policy's issuance and then, typically after a waiting period. You will need to provide medical information, often confirmed by a physician, to the insurer for consideration. Most long-term disability insurance policies categorize disabilities as own occupation or any occupation. Own occupation means the insured, due to disability, is unable to perform their regular job or a similar job. Any occupation means the insured, due to disability, is unable to perform any job for which they are qualified. Similar to short- and long-term disability insurance, workers' compensation , or workers' comp, pays a monetary benefit to workers who become injured or disabled at work or while performing their jobs. Most states require employers to carry workers' compensation insurance for their employees. In exchange, employees may not sue their employer for negligence. While long-term disability insurance and workers' compensation insurance both pay for disabilities, long-term disability insurance is not limited to disabilities or injuries occurring at work or while working. 2. An Introduction to Life Insurance Life insurance protects the people who are financially dependent on you. If your parents, spouse, children, or other loved ones would face financial hardship if you died, you should place life insurance high on your list of priorities. Think about how much you earn each year (and the number of years you plan to remain employed), and purchase a policy to replace that income in the event of your untimely demise. 3. A Guide to Health Insurance Coverage The soaring cost of medical care is reason enough to make health insurance a necessity. Even a simple visit to the family doctor can result in a hefty bill. More serious injuries that result in a hospital stay can generate a bill that tops the price of a one-week stay at a luxury resort. Injuries that require surgery can quickly rack up five-figure costs. Although the cost of health insurance is a financial burden for just about everyone, the potential cost of not having coverage is much higher. 4. Navigating Homeowners Insurance Policies Replacing your home is an expensive proposition. Having the right homeowners insurance can make the process less difficult. When shopping for a policy, look for one that covers the replacement of the structure and the contents, in addition to the cost of living somewhere else while your home is repaired. Keep in mind that the cost of rebuilding doesn't need to include the cost of the land since you already own it. Depending on the age of your home and the amenities it contains, the cost to replace it could be more or less than the price you paid for it. To get an accurate estimate, find out what local builders charge per square foot and multiply that number by the amount of space you will need to replace. Don't forget to factor in the cost of upgrades and special features. Also, be sure that the policy covers the cost of any liability for injuries that might occur on your property. Renters Insurance Renters also need peace of mind that they will be made whole in the event of a loss. Fortunately, renters insurance is a type of property insurance available to people who rent or lease properties. This insurance provides coverage for personal belongings, liability, and additional living expenses for covered losses. For one property, there may be two types of property coverage: homeowners insurance and renters insurance. However, homeowners insurance does not cover the personal property of the tenant. Therefore, lessees need to obtain renters insurance to protect their assets. Although renters insurance differs from homeowners insurance, they have the same components: coverage A for the dwelling, B for other structures, C for personal property, D for additional living expenses (also known as loss of use), E for liability, and F for medical payments. Because renters are not responsible for insuring the dwelling or other structures, coverages A and B are often set to $0. Coverage C covers the personal property of the renter. Coverage D provides additional benefits for living expenses in the event of a loss. For example, if the renter is displaced from the home due to a fire, Coverage D covers the cost of living elsewhere, such as hotel and food expenses. Coverage E provides coverage for injuries and property damage caused by the insured, and Coverage F covers medical expenses for guests of the renter on the property with permission. Tip Some insurers won't issue renters insurance policies to renters who own certain dog breeds, like pit bulls. 5. Exploring Automobile Insurance Options Some level of automobile insurance is required by law in most places. Even if you are not required to have it, and you are driving an old clunker that has been paid off for years, automobile insurance is something you shouldn't skip. If you are involved in an accident and someone is injured or their property is damaged, you may be subject to a lawsuit that could cost you everything you own. Accidents happen quickly, and the results are often tragic. Having no automobile insurance, or purchasing only the minimum required coverage, saves you only a tiny amount of money and puts everything else you own at risk. Important In addition to the policies listed above, business owners need business insurance . Liability coverage in a litigation-happy society could be the difference between a long, prosperous endeavor and a trip to bankruptcy court. Tips for Shopping Insurance Wisely Insurance policies come in a variety of shapes and sizes and boast many different features, benefits, and prices. Shop carefully, read the policies, and talk to a licensed insurance professional to be certain you understand the coverage and the cost. Make sure the policies you purchase are adequate for your needs, and don't sign on the dotted line until you are happy with the purchase. Consider enlisting the service of an insurance broker , as they can search for policies across several insurance companies to find coverage that best suits your needs. Ask the broker to provide you with several options so you can compare features, provisions, and rates. Be in control of your protection by being well-informed to make a decision. What Is a Whole Life Insurance Policy? A whole life insurance policy is a permanent life insurance policy in which death benefits are paid upon the death of an insured. The whole life policy remains in force for the life of the insured as long as premiums are up to date. In addition to death benefits, whole life policies build cash value, which can be accessed during the insured's lifetime. What Is a Universal Life Insurance Policy? A universal life (UL) insurance policy is permanent life insurance that allows the policyholder to invest their cash value in a separate account, which features funds tied to the stock market. It is a flexible policy, whereby premiums and death benefits can be adjusted. How Do You Cancel an Insurance Policy? A policyholder must cancel an insurance policy according to the cancellation provisions of their contract. Often, insurers allow policyholders to cancel by phone; however, some require the request in writing. What Is an Umbrella Insurance Policy? An umbrella policy is liability insurance that provides additional coverage in excess of the policyholder's current policy limits. For example, if damages exceed the limits of a policyholder's property insurance (e.g., home or auto), the umbrella policy will provide the additional liability coverage, up to policy limits. This type of insurance most benefits those with sizable assets, which could be subject to seizure. How Much Does a $1 Million Life Insurance Policy Cost? The cost of a $1 million life insurance policy varies according to the type of life insurance issued—whole or term, the insured's age, the insured's health, and other underwriting factors. It could range from a few hundred to thousands of dollars. The best way to find out how much a $1 million policy costs you is to get quotes from a life insurance agent or broker. What Is the Cash Value of a Life Insurance Policy? The cash value of a life insurance policy is the amount in excess of the premiums that has accumulated in the policy. Cash value is the savings component of a permanent life insurance policy that accumulates interest and can be accessed by the policy's owner in the form of a cash withdrawal or a loan. What Is the Declarations Page of an Insurance Policy? An insurance policy's declarations page is the part of the insurance contract that includes the general policy information. This page lists the policy owner, insured, the face amount of coverage, and terms and conditions. The Bottom Line In life, losses are inevitable, and the degree to which these losses impact our lives varies. Insurance lessens the impact by providing financial benefits for covered losses. There are many types of insurance available, but there are some which top the charts in terms of importance. Home or property insurance, life insurance, disability insurance, health insurance, and automobile insurance are five types that everyone should have.
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[Average Income by Work Experience Compared](https://www.investopedia.com/average-income-by-work-experience-uncovered-are-you-paid-what-you-deserve-11947171) Table of Contents Expand Table of Contents - [Long-Term Disability Insurance](https://www.investopedia.com/insurance/insurance-policies-everyone-should-have/#toc-1-understanding-long-term-disability-insurance) - [Life Insurance](https://www.investopedia.com/insurance/insurance-policies-everyone-should-have/#toc-2-an-introduction-to-life-insurance) - [Health Insurance](https://www.investopedia.com/insurance/insurance-policies-everyone-should-have/#toc-3-a-guide-to-health-insurance-coverage) - [Homeowners Insurance](https://www.investopedia.com/insurance/insurance-policies-everyone-should-have/#toc-4-navigating-homeowners-insurance-policies) - [Auto Insurance](https://www.investopedia.com/insurance/insurance-policies-everyone-should-have/#toc-5-exploring-automobile-insurance-options) - [Insurance Shopping Tips](https://www.investopedia.com/insurance/insurance-policies-everyone-should-have/#toc-tips-for-shopping-insurance-wisely) - [FAQs](https://www.investopedia.com/insurance/insurance-policies-everyone-should-have/#toc-what-is-a-whole-life-insurance-policy) - [The Bottom Line](https://www.investopedia.com/insurance/insurance-policies-everyone-should-have/#toc-the-bottom-line) # 5 Essential Insurance Policies for Comprehensive Asset Protection By [Lisa Smith](https://www.investopedia.com/contributors/121/) [Full Bio](https://www.investopedia.com/contributors/121/) Lisa Smith is a writer with a passion for financial journalism, contributing to popular media outlets like Investopedia and Bloomberg BNA. Learn about our [editorial policies](https://www.investopedia.com/legal-4768893#editorial-policy) Updated March 29, 2026 Reviewed by [Eric Estevez](https://www.investopedia.com/eric-estevez-4799782) ![Eric Estevez]() ![Eric Estevez](https://www.investopedia.com/thmb/ABs9H86FjAYSX2TyohG4Z6lYbKY=/200x200/filters:no_upscale:max_bytes$150000$:strip_icc/profile-EricEstevez-4439ff1611f74bbfbabfc9fa32af2072.jpg) Reviewed by Eric Estevez [Full Bio](https://www.investopedia.com/eric-estevez-4799782) Eric's career includes extensive work in both public and corporate accounting with responsibilities such as preparing and reviewing federal, state, and local tax filings; supporting multinational teams on tax compliance and financial controls; managing bookkeeping, financial statements, and month-/year-end-close; and advising business owners on financial management and operational strategy. Learn about our [Financial Review Board](https://www.investopedia.com/investopedia-financial-review-board-5076269) ![Insurance policies you should have: life, health, homeowners, automobile, long-term disability](https://www.investopedia.com/thmb/3PpXXg_R0eoQ8laATA1VLH6o0e4=/1500x0/filters:no_upscale:max_bytes$150000$:strip_icc/insurance-policies-everyone-should-have.asp-c71cf03531814b0eaafa2d3b5b737ba2.jpg) ![Insurance policies you should have: life, health, homeowners, automobile, long-term disability](https://www.investopedia.com/thmb/3PpXXg_R0eoQ8laATA1VLH6o0e4=/1500x0/filters:no_upscale:max_bytes$150000$:strip_icc/insurance-policies-everyone-should-have.asp-c71cf03531814b0eaafa2d3b5b737ba2.jpg) Jessica Olah / Investopedia Close ### Key Takeaways - Disability insurance can ensure you maintain your lifestyle if you can't work. - Life insurance is vital for protecting those financially dependent on you. - Health insurance is essential, even for healthy young individuals. - An umbrella policy increases liability coverage beyond existing policy limits. - The cost of life insurance varies by policy type and personal factors. An [insurance](https://www.investopedia.com/terms/i/insurance.asp) policy can protect you from the hazards of normal life, from floods and fires to car accidents and life-threatening illnesses. You can't stop disasters from happening, but a good insurance policy can provide financial coverage for these unexpected expenses. Protecting your most important assets is an important step in creating a solid personal financial plan. Here are five policies you shouldn't do without, to help protect your assets and save you money. ## 1\. Understanding Long-Term Disability Insurance The prospect of long-term disability (LTD) is so frightening that some people choose to ignore it. While we all think that "nothing will happen to me," relying on hope to protect your future earning power is not a good idea. Instead, choose a disability policy that [provides enough coverage](https://www.investopedia.com/terms/d/diinsurance.asp) to enable you to enjoy your current lifestyle even if you can no longer continue working. Long-term disability provides a monetary benefit equal to a portion (e.g., 50% or 60%) of the insured's salary for covered disabilities. Long-term disability typically begins when [short-term disability](https://www.investopedia.com/the-best-short-term-disability-insurance-11723341) ends. To receive benefits, the disability must have occurred after the policy's issuance and then, typically after a waiting period. You will need to provide medical information, often confirmed by a physician, to the insurer for consideration. Most [long-term disability insurance policies](https://www.investopedia.com/the-best-long-term-disability-insurance-11699028) categorize disabilities as own occupation or any occupation. Own occupation means the insured, due to disability, is unable to perform their regular job or a similar job. Any occupation means the insured, due to disability, is unable to perform any job for which they are qualified. Similar to short- and long-term disability insurance, [workers' compensation](https://www.investopedia.com/terms/w/workers-compensation.asp), or workers' comp, pays a monetary benefit to workers who become injured or disabled at work or while performing their jobs. Most states require employers to carry workers' compensation insurance for their employees. In exchange, employees may not sue their employer for negligence. While long-term disability insurance and workers' compensation insurance both pay for disabilities, long-term disability insurance is not limited to disabilities or injuries occurring at work or while working. ## 2\. An Introduction to Life Insurance [Life insurance](https://www.investopedia.com/terms/l/lifeinsurance.asp) protects the people who are financially dependent on you. If your parents, spouse, children, or other loved ones would face financial hardship if you died, you should place life insurance high on your list of priorities. Think about how much you earn each year (and the number of years you plan to remain employed), and [purchase a policy to replace that income](https://www.investopedia.com/the-best-life-insurance-companies-8763666) in the event of your untimely demise. ### Tip [Factor in the cost of burial, too](https://www.investopedia.com/terms/b/burial-insurance.asp), as the unexpected expense is a burden for many families. ## 3\. A Guide to Health Insurance Coverage The soaring cost of medical care is reason enough to make [health insurance](https://www.investopedia.com/terms/h/healthinsurance.asp) a necessity. Even a simple visit to the family doctor can result in a hefty bill. More serious injuries that result in a hospital stay can generate a bill that tops the price of a one-week stay at a luxury resort. Injuries that require surgery can quickly rack up five-figure costs. Although the cost of health insurance is a financial burden for just about everyone, the [potential cost of not having coverage](https://www.investopedia.com/articles/personal-finance/120815/dont-have-health-insurance-whats-worst-could-happen.asp) is much higher. ## 4\. Navigating Homeowners Insurance Policies Replacing your home is an expensive proposition. Having the right [homeowners insurance](https://www.investopedia.com/terms/h/homeowners-insurance.asp) can make the process less difficult. When shopping for a policy, look for one that covers the replacement of the structure and the contents, in addition to the cost of living somewhere else while your home is repaired. Keep in mind that the cost of rebuilding doesn't need to include the cost of the land since you already own it. Depending on the age of your home and the amenities it contains, the [cost to replace](https://www.investopedia.com/terms/r/replacementcost.asp) it could be more or less than the price you paid for it. To get an accurate estimate, find out what local builders charge per square foot and multiply that number by the amount of space you will need to replace. Don't forget to factor in the cost of upgrades and special features. Also, be sure that the policy covers the cost of any liability for injuries that might occur on your property. ### Renters Insurance Renters also need peace of mind that they will be made whole in the event of a loss. Fortunately, [renters insurance](https://www.investopedia.com/terms/r/renters-insurance.asp) is a type of property insurance available to people who rent or lease properties. This insurance provides coverage for personal belongings, liability, and additional living expenses for covered losses. For one property, there may be two types of property coverage: homeowners insurance and renters insurance. However, homeowners insurance does not cover the personal property of the tenant. Therefore, lessees need to obtain renters insurance to protect their assets. Although renters insurance differs from homeowners insurance, they have the same components: coverage A for the dwelling, B for other structures, C for personal property, D for additional living expenses (also known as loss of use), E for liability, and F for medical payments. Because renters are not responsible for insuring the dwelling or other structures, coverages A and B are often set to \$0. Coverage C covers the personal property of the renter. Coverage D provides additional benefits for living expenses in the event of a loss. For example, if the renter is displaced from the home due to a fire, Coverage D covers the cost of living elsewhere, such as hotel and food expenses. Coverage E provides coverage for injuries and property damage caused by the insured, and Coverage F covers medical expenses for guests of the renter on the property with permission. ### Tip Some insurers won't issue renters insurance policies to renters who own certain dog breeds, like pit bulls. ## 5\. Exploring Automobile Insurance Options Some level of [automobile insurance](https://www.investopedia.com/terms/a/auto-insurance.asp) is required by law in most places. Even if you are not required to have it, and you are driving an old clunker that has been paid off for years, automobile insurance is something you shouldn't skip. If you are involved in an accident and someone is injured or their property is damaged, you may be subject to a lawsuit that could cost you everything you own. Accidents happen quickly, and the results are often tragic. Having no automobile insurance, or purchasing only the minimum required coverage, saves you only a tiny amount of money and puts everything else you own at risk. ### Important In addition to the policies listed above, business owners need [business insurance](https://www.investopedia.com/terms/b/business-insurance.asp). Liability coverage in a litigation-happy society could be the difference between a long, prosperous endeavor and a trip to bankruptcy court. ## Tips for Shopping Insurance Wisely Insurance policies come in a variety of shapes and sizes and boast many different features, benefits, and prices. Shop carefully, read the policies, and talk to a licensed insurance professional to be certain you understand the coverage and the cost. Make sure the policies you purchase are adequate for your needs, and don't sign on the dotted line until you are happy with the purchase. [Consider enlisting the service of an insurance broker](https://www.investopedia.com/terms/b/broker-of-record.asp), as they can search for policies across several insurance companies to find coverage that best suits your needs. Ask the broker to provide you with several options so you can compare features, provisions, and rates. Be in control of your protection by being well-informed to make a decision. ## What Is a Whole Life Insurance Policy? A [whole life insurance](https://www.investopedia.com/terms/w/wholelife.asp) policy is a permanent life insurance policy in which death benefits are paid upon the death of an insured. The whole life policy remains in force for the life of the insured as long as premiums are up to date. In addition to death benefits, whole life policies build cash value, which can be accessed during the insured's lifetime. ## What Is a Universal Life Insurance Policy? A [universal life (UL) insurance](https://www.investopedia.com/terms/u/universallife.asp) policy is permanent life insurance that allows the policyholder to invest their cash value in a separate account, which features funds tied to the stock market. It is a flexible policy, whereby premiums and death benefits can be adjusted. ## How Do You Cancel an Insurance Policy? A policyholder must cancel an insurance policy according to the cancellation provisions of their contract. Often, insurers allow policyholders to cancel by phone; however, some require the request in writing. ## What Is an Umbrella Insurance Policy? An [umbrella policy](https://www.investopedia.com/terms/u/umbrella-insurance-policy.asp) is liability insurance that provides additional coverage in excess of the policyholder's current policy limits. For example, if damages exceed the limits of a policyholder's property insurance (e.g., home or auto), the umbrella policy will provide the additional liability coverage, up to policy limits. This type of insurance most benefits those with sizable assets, which could be subject to seizure. ## How Much Does a \$1 Million Life Insurance Policy Cost? The cost of a \$1 million life insurance policy varies according to the type of life insurance issued—whole or term, the insured's age, the insured's health, and other underwriting factors. It could range from a few hundred to thousands of dollars. The best way to find out how much a \$1 million policy costs you is to get quotes from a life insurance agent or broker. ## What Is the Cash Value of a Life Insurance Policy? The [cash value of a life insurance policy](https://www.investopedia.com/terms/c/cash-value-life-insurance.asp) is the amount in excess of the premiums that has accumulated in the policy. Cash value is the savings component of a permanent life insurance policy that accumulates interest and can be accessed by the policy's owner in the form of a cash withdrawal or a loan. ## What Is the Declarations Page of an Insurance Policy? An insurance policy's [declarations page](https://www.investopedia.com/terms/c/common-policy-declarations.asp) is the part of the insurance contract that includes the general policy information. This page lists the policy owner, insured, the face amount of coverage, and terms and conditions. ## The Bottom Line In life, losses are inevitable, and the degree to which these losses impact our lives varies. Insurance lessens the impact by providing financial benefits for covered losses. There are many types of insurance available, but there are some which top the charts in terms of importance. Home or property insurance, life insurance, disability insurance, health insurance, and automobile insurance are five types that everyone should have. Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our [editorial policy.](https://www.investopedia.com/legal-4768893#EditorialPolicy) 1. Patient Advocate. "[Long-Term Disability and Its Benefits](https://www.patientadvocate.org/explore-our-resources/maintaining-employment-employment-benefits/long-term-disability-and-its-benefits/)." 2. CBS News. "[Most Expensive Medical Procedures in the U.S., Ranked](https://www.cbsnews.com/pictures/most-expensive-medical-procedures-without-insurance/)." 3. Towne Insurance. "[Seven Coverage Parts of Homeowners Insurance](https://www.towneinsurance.com/personal/personal/property/home/parts/)." 4. ValuePenguin. 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Readable Markdown	### Key Takeaways - Disability insurance can ensure you maintain your lifestyle if you can't work. - Life insurance is vital for protecting those financially dependent on you. - Health insurance is essential, even for healthy young individuals. - An umbrella policy increases liability coverage beyond existing policy limits. - The cost of life insurance varies by policy type and personal factors. An [insurance](https://www.investopedia.com/terms/i/insurance.asp) policy can protect you from the hazards of normal life, from floods and fires to car accidents and life-threatening illnesses. You can't stop disasters from happening, but a good insurance policy can provide financial coverage for these unexpected expenses. Protecting your most important assets is an important step in creating a solid personal financial plan. Here are five policies you shouldn't do without, to help protect your assets and save you money. ## 1\. Understanding Long-Term Disability Insurance The prospect of long-term disability (LTD) is so frightening that some people choose to ignore it. While we all think that "nothing will happen to me," relying on hope to protect your future earning power is not a good idea. Instead, choose a disability policy that [provides enough coverage](https://www.investopedia.com/terms/d/diinsurance.asp) to enable you to enjoy your current lifestyle even if you can no longer continue working. Long-term disability provides a monetary benefit equal to a portion (e.g., 50% or 60%) of the insured's salary for covered disabilities. Long-term disability typically begins when [short-term disability](https://www.investopedia.com/the-best-short-term-disability-insurance-11723341) ends. To receive benefits, the disability must have occurred after the policy's issuance and then, typically after a waiting period. You will need to provide medical information, often confirmed by a physician, to the insurer for consideration. Most [long-term disability insurance policies](https://www.investopedia.com/the-best-long-term-disability-insurance-11699028) categorize disabilities as own occupation or any occupation. Own occupation means the insured, due to disability, is unable to perform their regular job or a similar job. Any occupation means the insured, due to disability, is unable to perform any job for which they are qualified. Similar to short- and long-term disability insurance, [workers' compensation](https://www.investopedia.com/terms/w/workers-compensation.asp), or workers' comp, pays a monetary benefit to workers who become injured or disabled at work or while performing their jobs. Most states require employers to carry workers' compensation insurance for their employees. In exchange, employees may not sue their employer for negligence. While long-term disability insurance and workers' compensation insurance both pay for disabilities, long-term disability insurance is not limited to disabilities or injuries occurring at work or while working. ## 2\. An Introduction to Life Insurance [Life insurance](https://www.investopedia.com/terms/l/lifeinsurance.asp) protects the people who are financially dependent on you. If your parents, spouse, children, or other loved ones would face financial hardship if you died, you should place life insurance high on your list of priorities. Think about how much you earn each year (and the number of years you plan to remain employed), and [purchase a policy to replace that income](https://www.investopedia.com/the-best-life-insurance-companies-8763666) in the event of your untimely demise. ## 3\. A Guide to Health Insurance Coverage The soaring cost of medical care is reason enough to make [health insurance](https://www.investopedia.com/terms/h/healthinsurance.asp) a necessity. Even a simple visit to the family doctor can result in a hefty bill. More serious injuries that result in a hospital stay can generate a bill that tops the price of a one-week stay at a luxury resort. Injuries that require surgery can quickly rack up five-figure costs. Although the cost of health insurance is a financial burden for just about everyone, the [potential cost of not having coverage](https://www.investopedia.com/articles/personal-finance/120815/dont-have-health-insurance-whats-worst-could-happen.asp) is much higher. ## 4\. Navigating Homeowners Insurance Policies Replacing your home is an expensive proposition. Having the right [homeowners insurance](https://www.investopedia.com/terms/h/homeowners-insurance.asp) can make the process less difficult. When shopping for a policy, look for one that covers the replacement of the structure and the contents, in addition to the cost of living somewhere else while your home is repaired. Keep in mind that the cost of rebuilding doesn't need to include the cost of the land since you already own it. Depending on the age of your home and the amenities it contains, the [cost to replace](https://www.investopedia.com/terms/r/replacementcost.asp) it could be more or less than the price you paid for it. To get an accurate estimate, find out what local builders charge per square foot and multiply that number by the amount of space you will need to replace. Don't forget to factor in the cost of upgrades and special features. Also, be sure that the policy covers the cost of any liability for injuries that might occur on your property. ### Renters Insurance Renters also need peace of mind that they will be made whole in the event of a loss. Fortunately, [renters insurance](https://www.investopedia.com/terms/r/renters-insurance.asp) is a type of property insurance available to people who rent or lease properties. This insurance provides coverage for personal belongings, liability, and additional living expenses for covered losses. For one property, there may be two types of property coverage: homeowners insurance and renters insurance. However, homeowners insurance does not cover the personal property of the tenant. Therefore, lessees need to obtain renters insurance to protect their assets. Although renters insurance differs from homeowners insurance, they have the same components: coverage A for the dwelling, B for other structures, C for personal property, D for additional living expenses (also known as loss of use), E for liability, and F for medical payments. Because renters are not responsible for insuring the dwelling or other structures, coverages A and B are often set to \$0. Coverage C covers the personal property of the renter. Coverage D provides additional benefits for living expenses in the event of a loss. For example, if the renter is displaced from the home due to a fire, Coverage D covers the cost of living elsewhere, such as hotel and food expenses. Coverage E provides coverage for injuries and property damage caused by the insured, and Coverage F covers medical expenses for guests of the renter on the property with permission. ### Tip Some insurers won't issue renters insurance policies to renters who own certain dog breeds, like pit bulls. ## 5\. Exploring Automobile Insurance Options Some level of [automobile insurance](https://www.investopedia.com/terms/a/auto-insurance.asp) is required by law in most places. Even if you are not required to have it, and you are driving an old clunker that has been paid off for years, automobile insurance is something you shouldn't skip. If you are involved in an accident and someone is injured or their property is damaged, you may be subject to a lawsuit that could cost you everything you own. Accidents happen quickly, and the results are often tragic. Having no automobile insurance, or purchasing only the minimum required coverage, saves you only a tiny amount of money and puts everything else you own at risk. ### Important In addition to the policies listed above, business owners need [business insurance](https://www.investopedia.com/terms/b/business-insurance.asp). Liability coverage in a litigation-happy society could be the difference between a long, prosperous endeavor and a trip to bankruptcy court. ## Tips for Shopping Insurance Wisely Insurance policies come in a variety of shapes and sizes and boast many different features, benefits, and prices. Shop carefully, read the policies, and talk to a licensed insurance professional to be certain you understand the coverage and the cost. Make sure the policies you purchase are adequate for your needs, and don't sign on the dotted line until you are happy with the purchase. [Consider enlisting the service of an insurance broker](https://www.investopedia.com/terms/b/broker-of-record.asp), as they can search for policies across several insurance companies to find coverage that best suits your needs. Ask the broker to provide you with several options so you can compare features, provisions, and rates. Be in control of your protection by being well-informed to make a decision. ## What Is a Whole Life Insurance Policy? A [whole life insurance](https://www.investopedia.com/terms/w/wholelife.asp) policy is a permanent life insurance policy in which death benefits are paid upon the death of an insured. The whole life policy remains in force for the life of the insured as long as premiums are up to date. In addition to death benefits, whole life policies build cash value, which can be accessed during the insured's lifetime. ## What Is a Universal Life Insurance Policy? A [universal life (UL) insurance](https://www.investopedia.com/terms/u/universallife.asp) policy is permanent life insurance that allows the policyholder to invest their cash value in a separate account, which features funds tied to the stock market. It is a flexible policy, whereby premiums and death benefits can be adjusted. ## How Do You Cancel an Insurance Policy? A policyholder must cancel an insurance policy according to the cancellation provisions of their contract. Often, insurers allow policyholders to cancel by phone; however, some require the request in writing. ## What Is an Umbrella Insurance Policy? An [umbrella policy](https://www.investopedia.com/terms/u/umbrella-insurance-policy.asp) is liability insurance that provides additional coverage in excess of the policyholder's current policy limits. For example, if damages exceed the limits of a policyholder's property insurance (e.g., home or auto), the umbrella policy will provide the additional liability coverage, up to policy limits. This type of insurance most benefits those with sizable assets, which could be subject to seizure. ## How Much Does a \$1 Million Life Insurance Policy Cost? The cost of a \$1 million life insurance policy varies according to the type of life insurance issued—whole or term, the insured's age, the insured's health, and other underwriting factors. It could range from a few hundred to thousands of dollars. The best way to find out how much a \$1 million policy costs you is to get quotes from a life insurance agent or broker. ## What Is the Cash Value of a Life Insurance Policy? The [cash value of a life insurance policy](https://www.investopedia.com/terms/c/cash-value-life-insurance.asp) is the amount in excess of the premiums that has accumulated in the policy. Cash value is the savings component of a permanent life insurance policy that accumulates interest and can be accessed by the policy's owner in the form of a cash withdrawal or a loan. ## What Is the Declarations Page of an Insurance Policy? An insurance policy's [declarations page](https://www.investopedia.com/terms/c/common-policy-declarations.asp) is the part of the insurance contract that includes the general policy information. This page lists the policy owner, insured, the face amount of coverage, and terms and conditions. ## The Bottom Line In life, losses are inevitable, and the degree to which these losses impact our lives varies. Insurance lessens the impact by providing financial benefits for covered losses. There are many types of insurance available, but there are some which top the charts in terms of importance. Home or property insurance, life insurance, disability insurance, health insurance, and automobile insurance are five types that everyone should have.
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