Insurance helps you safeguard your health, possessions and financial well-being. By paying a little money every month for coverage, you can avoid needing to come up with the entire amount in a time of crisis.

Make sure you’re prepared for the unexpected by having these 5 types of insurance policies on hand.

Life

If you pass away, life insurance benefits can replace income for your family, pay final expenses, (including taxes), create an inheritance or make charitable contributions to a favorite cause. Life insurance may be necessary if you want your family to be financially secure in the event of your death. Term life insurance pays a benefit only if you die during the term of the policy. Young parents, for example, may purchase a 20-year term policy to protect their children during the years that they live at home. Whole life, or permanent, insurance pays a benefit no matter when you die, as long as you continue to make scheduled premium payments.

Navy Federal Financial Group can help you determine the life insurance policies and coverage amounts that are right for you.

Auto

Nearly every state requires your vehicle to be insured if you drive a car. There are different levels of coverage, including liability only, collision and comprehensive. To determine what is right for you, consider the age, value and usage of your car, alongside your larger budget. See if Navy Federal’s partnership with GEICO® could help you save on car insurance with a special, member-only discount.

Renters/Homeowners

Renters insurance covers the cost of replacing your personal items if there’s damage to or theft in your apartment. Many apartment communities require residents to have renters insurance. Homeowners insurance is essential and required by most mortgage lenders if you own a home, since it’s likely your most valuable asset. Whether you rent or own, review your policy carefully, and be aware, you may need additional insurance that might not be covered with a standard plan, such as damage from a flood, earthquake, fire or other natural disasters. Extended dwelling coverage can cover the cost to replace or rebuild your property even if the cost exceeds your policy’s coverage.

Health

A serious illness or major medical procedure could cost thousands. Having health insurance can greatly reduce the burden by helping to cover significant medical expenses. It can also help you better afford ongoing care if you have a chronic condition. When choosing a plan, you may need to determine whether you want more health coverage and higher monthly premiums, or lower monthly premiums and higher out-of-pocket costs. If you have a preferred doctor, check that he or she is in-network. Whether it’s a private insurance plan, Medicare, Medicaid, TRICARE, a Marketplace plan or a plan through your employer, health insurance can help you feel more confident about your future. Review all your options for health insurance and sign up or renew your coverage during your plan’s open enrollment period.

Disability

If you’re unable to work due to illness or injury, disability insurance can replace a portion of your lost income to help cover living expenses. Having disability insurance can be especially critical if you’re the primary household income earner and/or work in a high-risk industry. Disability insurance is offered as both short- and long-term policies. Short-term policies may begin paying benefits about 1 or 2 weeks after a claim, and usually continue up to 6 months. Long-term policies pay a percentage of your income for a defined term or until you turn a certain age (usually age 65). Your employer may offer disability insurance, or you can purchase your own policy.

Life is unpredictable, but you can have peace of mind with insurance coverage that protects your loved ones and future. Take the opportunity to find the right insurance coverage for your needs and rest assured that you’ve taken an important step in building financial security.

This article is intended to provide general information and shouldn't be considered legal, tax or financial advice. It's always a good idea to consult a tax or financial advisor for specific information on how certain laws apply to your situation and about your individual financial situation.