Liability – This will cover you or a covered party in the event of an at-fault accident for bodily injury or property damage to others. It is mandatory in most states. While younger drivers can get away with lower limits, as soon as one starts accumulating assets, it is recommended to never have less than 100/300 in BI limits.

UM/UIM – Equally as important as liability is uninsured and under insured motorist coverage that will cover you in the event that a person with no or low limits causes an accident. Don't skimp on coverage here. There are millions of uninsured drivers on the road! There are many more who lack sufficient coverage to pay for the full value of damages. Get an amount equal to your liability limits and stack the policy if you have multiple vehicles. This means that you can get the limits multiplied by the number of vehicles on the policy.

PIP/Medpay – PIP is mandatory in some states and Medpay can be used as supplemental coverage. In non-PIP states, MedPay is provided as an option to cover damages to you or other covered parties occupying your car. This is good first party coverage to have, especially if you don't have health insurance or have a health deductible to meet.

Rental – This is helpful if your car is out of service and is inexpensive to purchase.

Towing/Glass – This coverage is usually very reasonable and can come in handy.

Your next consideration is your personal property, including residences. This will include either renter's insurance or homeowner's insurance. Both are extremely important. Many renters lose sight of the need for this type of insurance, only to find out the challenges they will have to overcome in the event of fire, theft or other peril. As for homeowner's, covering both personal property and possessions is equally important. When purchasing coverage, ensure that you consider the value of the replacement cost of both the home and the contents. Cheaper policies may be available, but the last thing you want in the event of a claim is to be handed a check for the depreciated value of your possessions or funds that don't cover rebuilding costs of your home.

Note that there are many limitations on homeowner's coverages when it comes to jewelry, guns and other collectibles. In situations where you need additional coverage, an inland marine policy should be considered.

Another very important consideration is flood insurance. Most people don't know that the majority of flood claims occur in zones where flood insurance isn't required. The reality is that most people live in some type of flood zone, even in situations where there may be a disaster every 500 years. Flood damage is excluded in homeowner's policies, so this is a very important coverage to have.

Earthquake coverage is disaster coverage worth considering. While only 10% of Californians possess this coverage, there are a number of other earthquake prone areas of the country where the ground has a history of moving unexpectedly.

When it comes to one's well-being, health insurance is a key priority. With the passage of the Affordable Care Act, it became the law of the land with the exception of some special interests who were granted exclusions. Regardless, health insurance is extremely important, as is the quality of the policy. According to an AP poll, more than half of all Obamacare policies exclude coverage at high-end cancer hospitals, such as Memorial Sloan Kettering and MD Anderson. Still other policies available through various exchanges exclude or limit coverage at out-of-state hospitals. Make sure to read your policy and understand what is and is not covered. If there are glaring exclusions, take the steps to garner a secondary supplemental policy to ensure you will have access to the best coverage available should the need arise.

In addition to health insurance, life insurance is a key consideration. There are a wide variety of life insurance options available, with the most common being whole and term. Think of whole life as an interest-bearing savings account that can accrue for as long as the policy is owned. When surrendered, after a small fee, the policyholder can cashout their earnings. Term life is limited to a fixed period of time and will pay out specific amounts in the event of death. What type you choose will require some due diligence. For the purposes of this article, the message is to have life insurance to cover economic loss in the event of death. It is equally as important to have spousal life insurance equal to the value of their contribution to the household. As a rule of thumb, the minimum level of life insurance should be at least twice your annual income.

One often overlooked insurance is disability. The reality is that humans are fragile and over time we tend to break. A large percentage of Americans are disabled and not all quality for social security disability. If you are temporarily or permanently injured, it will be critical to have sustainable income. While this coverage can be obtained relatively inexpensively through some employers, it can be very expensive when purchased in the private health marketplace.

For those who provide professional services, ranging from doctors and lawyers to authors and consultants, it is very important to have professional liability coverage.

If you have assets, it is beneficial to get an umbrella policy. Umbrellas will serve as excess coverage to things like auto, home or boat insurance. Given the litigious nature of many in the United States, being fully insured is a worthwhile protection.

As we age, the variety of policies and coverages needed will change. Let's take a look by age group as to the most important coverages.

Teens – Auto is the big one here. Teenage drivers will drive up your premiums, but they have to be covered. Don't be tempted to cut back on coverage, especially when covering the age group with the highest propensity for an accident with the understanding that you need to also protect your assets. That said, when a teenager turns eighteen, there can be many advantages to putting the title in only the teen's name and lowering the limits on the vehicle.

Twenties – Ah, the age of invincibility. Who needs insurance? That is often the mindset of the perpetually broke and just out of college crowd. Many don't have health insurance, some don't have auto insurance, renter's coverage is sporadic, and most other insurance is an afterthought. Twenty somethings should be focusing on their future and how best to prepare for it. Lack of health insurance is the number one cause of bankruptcy in the United States. While this age group is healthy, adversity can occur, as was the case with my son, who at 21, was diagnosed with cancer. Fortunately, he had a policy that covered treatment at a top-rated facility in another state. Had he not had coverage, his financial future would be greatly compromised. So too are the futures of others faced with serious illness or injury in this age group.

Thirties – Now you have started to accrue assets and maybe have some children. You probably own a home and have a couple of cars. It is time to make sure that your coverage is up to date too. Auto, home, health and life are all very important. It is probably time for an umbrella policy. If you are married and have children, life insurance is a must. If you are a professional, then make sure you have professional liability. If you own a business, make sure you have general liability.

Forties – These are the years when people generally hit their stride for peak money-making opportunities. Your assets and net worth will rise. Auto, home, health, life, and umbrella are very important. But let's face it, you are aging. Now is the time to add disability insurance, and quite possibly some additional life insurance. Sure, you can add it earlier, but like any insurance, weigh out the pros and cons of this coverage that can be fairly expensive.

Fifties – Now is the time when the kids leave home. First and foremost, have a discussion with them on the importance of basic insurance. Then re-evaluate your own situation. It may now be time to add secondary health, as well. As we have learned, a lot of the Obamacare policies don't afford the best coverage, so having something like Aflac may be very beneficial. When it comes to life insurance, you are getting to the point where premiums will be pretty pricey! If you don't have it, this may be the last opportunity to get it.

Sixties and beyond – Now it is time to look at retirement and the challenges of aging. In addition to all of the coverage you have accrued to date, it is time to consider nursing home coverage. The cost of nursing homes continues to rise and can significantly eat into much of your nest egg. This is a good option to protect your assets. Speaking of assets, don't forget to provide protection to your heirs in the form of a revocable living trust, which can dramatically reduce or eliminate inheritance taxes for your children.

Now let's take a look at some coverage that you probably don't need:

Flight insurance – Flying is one of the safest ways to travel.

Travel Insurance – Conceptually a good idea if you are taking a Caribbean cruise in the midst of hurricane season, but these policies contain so many exclusions that they are very difficult to collect on.

Life Insurance for children – Life insurance is designed to replace lost income. Chances are your children don't have any.

Accidental death – Like travel insurance, there are usually so many exclusions that even the most accident prone will never effectuate a claim.

Disease Insurance – Spend your time trying to find the best healthcare policy that you can afford. Don't skimp on the health coverage, but you can skimp here with the right health policy.

Mortgage Life Insurance – If you've got a good life insurance policy, then you have enough to cover your mortgage.