What Types of Insurance Do I Really Need?

Depending on your stage of life, where you live, and your career path, your insurance needs will vary. Insurance policies serve as crucial safeguards against potentially devastating financial losses—protecting you, your family, and even your business.

But with so many options—home, auto, business, and beyond—navigating the insurance world can feel overwhelming.

That’s where the independent agents at C&S come in. In this blog, we’ll walk you through the types of insurance you may need throughout different stages of your life.

Young Adults: Insurance You Need in Your 20s and 30s

As a young adult, you’re likely making major life decisions—whether it’s going to college or grad school, starting your career, or moving out on your own. To protect your finances during this stage, consider the following insurance policies:

Health Insurance

In the U.S., having health insurance is essential to cover the high cost of doctor visits, medications, and emergency care. You can remain on a parent’s plan until age 26. After that, you’ll need your own.

Most people get health insurance through their employer or a spouse’s employer. If you’re not eligible through work, explore your options through the Health Insurance Marketplace. An independent agent can help guide you toward the best plan.

Even if you’re young and healthy, don’t skip this coverage—unexpected illnesses or injuries can lead to significant debt.

Auto Insurance

If you drive, auto insurance is required in all states except New Hampshire. At a minimum, you must carry liability insurance, which covers injury and property damage you cause to others.

However, liability coverage alone may not be enough. You should also consider:

• Collision and comprehensive coverage – for damage to your own vehicle
• Personal injury protection (PIP) – to cover your own medical expenses (required in Massachusetts)

Renters Insurance

Renting a home or apartment—even as a college student living off-campus? Renters insurance is essential and often required by landlords.

For around $15–$20 a month, renters insurance covers personal belongings in case of theft, fire, storms, burst pipes, and more. Even basic furniture and electronics can be costly to replace—this policy helps shield you from those unexpected expenses.

Disability Insurance

This type of policy replaces a portion of your income if you’re unable to work due to injury, illness, or a chronic condition.

If you’re employed full-time with benefits, you may be able to get this coverage through your employer. If you’re self-employed, consider purchasing an individual policy.

Insurance You’ll Need Throughout Adulthood

You may start adding these policies to your portfolio in your 20s or 30s—or later, as your life circumstances change.

Homeowners Insurance

When you move from renting to owning, you’ll need a homeowners insurance policy. It covers:

• The structure of your home
• Your personal belongings
• Detached structures (like garages and sheds)
• Liability if someone is injured on your property

Buying a condo instead? Look into condo insurance, which typically only covers the unit’s interior and your belongings.

Life Insurance

If someone depends on your income—a spouse, child, or aging parent—life insurance is a must.

Term life insurance offers coverage for a specific period (10, 20, or 30 years). It’s often more affordable, especially when purchased young.
Permanent life insurance lasts your entire life and may include a cash value component, but it’s typically more expensive.

Pet Insurance

Veterinary care can be expensive. If you have a dog, cat, or another pet, insurance can help with unexpected vet bills. Plans range from $330 to $530 per year for dogs, depending on the coverage you choose (accident, illness, or routine care).

Small Business Insurance

Starting your own business? You may be legally required to carry insurance—and even if you’re not, it’s a wise investment.

A Business Owner’s Policy (BOP) is a great starting point. It typically includes:

• General liability coverage
• Commercial property coverage
• Business interruption insurance

Buying these as a bundle is often more affordable than purchasing each separately.

Retirees: Insurance You Need at 65 and Beyond

As you age, your insurance needs shift again. You’ll likely keep policies like homeowners and auto insurance, but other changes come into play.

Medicare and Health Insurance
At age 65, you become eligible for Medicare, the federal health insurance program. But depending on your healthcare needs, you may want to explore supplemental policies or Medicare Advantage plans.

Auto Insurance for Seniors
Auto insurance costs may increase with age—typically around age 75 and up—due to a higher risk of injury and accident involvement.

Still, increases are usually modest, and many insurers offer senior discounts or safe driver programs.

Life Insurance for Seniors
As you age, life insurance options become more limited and costly. Some companies reduce available term lengths for older applicants.

Another option is final expense insurance—a small, permanent life insurance policy that helps cover funeral and burial costs, easing the burden on your loved ones.

Long-Term Care Insurance
Even if you’re independent now, you may need care in the future—whether at home or in a facility. Long-term care insurance helps cover services that traditional health insurance or Medicare doesn’t, such as:

• In-home care
• Assisted living
• Nursing home care
• Adult day care

In 2023, the median annual cost of a home health aide was over $75,000. Nursing home care surpassed $104,000 per year.

To qualify, you’ll need to purchase this coverage before you develop a serious condition—ideally in your 50s or early 60s. Most insurers won’t approve new applicants after age 75.

Have Questions?

Understanding your insurance needs at each stage of life can be complex—but you don’t have to do it alone. Reach out to a C&S Insurance agent today to find the right coverage for you.