Insurance is probably one of the top three or four expenses in the family budget. You'd just as soon not have to pay for it, but there may come a time when you're awfully glad you did. While most people understand the importance of carrying adequate insurance, many still leave gaps in their coverage. Just one gap in insurance coverage can result in an uninsured loss that could wipe out years, if not decades, of hard-earned savings. Don't jeopardize all the hard work you've expended to get where you are financially today by leaving a hole in your insurance umbrella. Moreover, take care to understand each of your policy's limits. Your insurance agent should explain the coverage although it doesn't hurt to read the policies yourself, admittedly not a very stimulating activity. Remember, the big print giveth, and the small print taketh away.

The following is a list of the various types of insurance coverage that you should typically have, although some may not be applicable, like professional liability insurance. Insurance is one area of your financial life that should not be given short shrift.

Long-term care
Personal liability
Professional liability