I hope you never have to use what I’m about to discuss here: Insurance.  Insurance is one of those financial products that you should have, but hope that you never actually use.  Unfortunately, accidents do happen and those who have an insurance policy will be happy they planned ahead.

I never really enjoy listening to an insurance salesman at the employee benefits because they always seem to use fear to sell their product.  But the fact is that insurance is all about the unknown and unimaginable happening, which is why you and your family should carefully consider these five insurance policies.

1. Umbrella Insurance

Simply put, an umbrella policy covers the remaining expenses left by your current insurance.  For example, imagine that you were in an automobile accident and there was a judgment against you for $ 350,000, but your auto policy only covered up to $ 200,000.  The remaining $ 150,000 balance would probably force you to sell all your assets and might mean that you need to declare bankruptcy.  With an umbrella policy, the difference would be covered up to whatever amount your policy is declared for.  Typically, 1-2 million dollar policies are standard, but higher umbrella policies are available if needed.

One of the most common misconceptions about umbrella insurance is that it’s too expensive to afford.  When you start throwing words like 1 million dollar insurance policy, most people say that’s way out of their budget.  But the fact is that many people can add an umbrella policy for $ 15 – $ 25 a month.  The actual amount will depend on the insurance company you insure through as well as your credit score and other personal risk factors.