Insurance provides peace of mind for whatever life throws your way, which is priceless. However, insurance itself does come with a price.

And, while there are many ways to save money with your policies, the truth of the matter is, not all policies are worth it. But there are certain types of insurance every single person needs, period. So read on and make sure you're covered in these areas!

Here are 5 types of insurance you absolutely need:

1. Homeowners/Renters

If you have a mortgage, insurance provides crucial protection in case your home is damaged by fire, storm or theft -- or someone is injured on your property and sues. Experts recommend buying a "replacement cost" policy, which covers the total expense of rebuilding your home or replacing your possessions. For those who rent, if there's a flood, storm damage, or a burglary, renter's insurance will cover the replacement costs of your damaged or stolen goods.

2. Health

Health-related expenses can be devastating, so it's critical to have health insurance. If you and your spouse don't have access to an employer health plan, sign on to Healthcare.gov to enroll in a policy that's right for you and your family.

3. Auto

Don't ever drive uninsured. Not only is it illegal (in Ohio), it could wind up being extremely costly, should you get in an accident. Experts advise purchasing a policy with minimum limits of at least $100,000 per person injured and $300,000 per accident, plus at least $50,000 in property-damage liability coverage (to pay for the other driver's repair bills). And if your vehicle is less than five years old, opt for comprehensive auto insurance, which pays for repairs or replacement of your vehicle if it is stolen or damaged by fire, flood or high winds.

4. Life

You need life insurance, period. Opt in once you get married; but especially by the time you gave kids. You can read all about your choices here; a 20-year term-life policy -- which lasts until your kids are old enough to support themselves -- is more affordable than a whole-life or cash-value policy; the latter two have investment components that raise the annual payments (but also the payout).

5. Disability

No one wants to think about this -- but things happen. In fact, according to statistics, a young parent is more likely to become disabled as a result of illness or an accident than die.That's why it's critical to make sure you'll have a steady stream of income in case you're suddenly unable to work. In many ways, disability insurance is just as important as life insurance.

Of course, this isn't to say there are other policies that are extremely helpful or even necessary, depending on your age, lifestyle or vocation. So be sure to talk to your agent to make sure you're covered in all the areas that you personally need to be!

Photo credit: Flickr/Kat Grigg

Sources: Parents.com, The Insurance You Don't Need | Consumer Reports, 4 Insurance Mistakes to Avoid

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