What is personal insurance and why would you need it? | finder.com
Young family at the park

Types of personal insurance

We value our editorial independence, basing our comparison results, content and reviews on objective analysis without bias. But we may receive compensation when you click links on our site. Learn more about how we make money from our partners.

Protect yourself and your loved ones with a customized policy.

Personal insurance can help keep you and your loves ones financially secure if something happens to you. But what policy is best for you will depend on your income, dependents and needs.

Types of personal insurance

Personal insurance can provide protection and peace of mind for you and your family. You can buy multiple policies separately or save money by bundling a policy with one insurer. Which types of insurance you need depends on your income, dependents and lifestyle.

Life insurance

The most basic type of life insurance pays a lump sum benefit to your beneficiaries when you die. That money can be used to:

  • Pay for funeral costs.
  • Pay off your mortgage and any other debts.
  • Cover the loss of your income and help with day-to-day expenses.
  • Pay for your children’s education.
  • Cover any other extra expenses your family might have

Key man insurance

Key man insurance is a life insurance policy taken out by a business on one of its employees. If something happens to the employee, the death benefit it paid out to the company to help cover the costs of losing the employee. For example, if a CEO dies, the benefit can help cover the cost of the drop in stock, as well as the time it takes to find a replacement.

Small businesses will sometimes take out a policy on the owner or manager so that the business can survive if it needs time to close down and reorganize if they die.

Learn more of the benefits of life insurance

Disability insurance

Disability insurance, also known as income protection insurance, pays a percentage of your income if you’re temporarily or permanently disabled and can’t work.

Disability insurance can:

  • Help you pay for nursing care and physical therapy not covered by your health insurance.
  • Cover some or all of the cost of renovating your home to fit your current needs and lifestyle.
  • Pay for day-to-day expenses if you’re unable to work.

Learn more of the benefits of income protection insurance

Critical illness insurance

Critical illness insurance pays you a lump sum benefit if you’re diagnosed with a critical illness such as heart disease, cancer or stroke. Insurers may have different guidelines for which medical conditions qualify, so check the fine print before purchasing a policy.

Critical illness insurance can:

  • Pay for copays, deductibles and medical expenses not covered by health insurance.
  • Pay for physical therapy and in-home nursing care.
  • Cover bills and other expenses while you’re unable to work.

Learn more of the benefits of critical illness insurance

Compare insurance companies

Name Product Issue Ages Coverage Range Medical Exam Required
18 - 85 years old
$10,000 to $10,000,000+
Depends on provider and policy
Compare quotes from 16 life insurance companies side by side.
20 to 60 years old
$100,000 to $8,000,000
No
Term life insurance with no policy fees and the freedom to cancel anytime. Simple application process that can get you approved for coverage instantly.
18 - 75 years old
$100,000 to $5,000,000
Depends on provider and policy
Apply for a simple instant-decision policy free of charge. Compare quotes from multiple A-rated carriers.
20 - 80 years old
$25,000 to $10,000,000
No
Quickly get a quote for coverage with this marketplace, which compares term life insurance policies from 45+ carriers.
21 - 54 years old
$50,000 to $1,000,000
No
Affordable 2-, 10- and 20-year term life insurance policies. Instant quotes and no medical exams.
18 - 80 years old
$50,000 to $25,000,000
Depends on provider and policy
Get a quote within minutes from more than a dozen insurers.
18 - 75 years old
$25,000 to $10,000,000
Yes, for policies over $1 million
Term life insurance with no medical exams for $1 million of coverage or less. Online application gets you a decision in 10 minutes.
18 - 80 years old
$25,000 to $10,000,000
Depends on provider and policy
Compare quotes from over 40 highly rated carriers and get coverage shortly after approval.
18 - 64 years old
$100,000 to $3,000,000
No
Customized term life insurance policies up to $3 million, no medical exam required.
18 to 85 years old
$10,000 to $1,000,000
No
Affordable life insurance for active duty, reserve, and retired United States military service members. Get a free quote online.

Compare up to 4 providers

Bottom line

The right life insurance policy can protect you and your loved ones if something happens to you. If you’re leaving a spouse or children behind, a death benefit can help cover any expenses when they don’t have you to rely on. And if you’re still working, consider adding on coverage that protects you if you’re sick or disabled. Compare life insurers to get the policy that fits your needs and budget.

Frequently asked questions

Picture: Shutterstock

Was this content helpful to you? No  Yes

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.
Go to site