8 Types of Insurance You Need Now, According to George Kamel
Written by
Ashley Donohoe
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Jenna Klaverweiden
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To legally and financially protect yourself and your family, you’ll need to include enough insurance in your financial plan. But you’ll come across many policy types when searching financial sites, and rising insurance costs make it wise to be selective and avoid unnecessary coverage.
In a recent YouTube video, money expert George Kamel discussed the eight types of insurance policies you shouldn’t go without. Learn why each is important and what specific coverage limits and options he recommended.
Also see what types of insurance are needed in retirement, according to ChatGPT.
Auto Insurance
Unless you live in New Hampshire, having car insurance is a must to legally drive. While liability coverage is the common legal minimum requirement, Kamel also recommended getting collision and comprehensive insurance, which help cover your own vehicle expenses in case of an at-fault accident or non-collision-related damage or loss.
He advised maximizing your coverage limits for each type based on your budget. His recommendation for liability insurance was $250,000 per person and $500,000 per accident for bodily injury liability and $250,000 for property damage liability.
Health Insurance
A November 2024 Gallup poll found that 31 million Americans had borrowed money for healthcare over the last year. Plus, 58% of Americans were somewhat or very concerned about incurring medical debt.
While health insurance doesn’t ensure you’ll pay nothing out of pocket, Kamel explained that this essential protection helps you get care without huge medical bills, which can lead to bankruptcy.
He recommended high-deductible health insurance for healthy people with emergency savings. These plans offer more affordable premiums and work nicely with a health savings account, which comes with multiple tax benefits.
Term Life Insurance
If you have a spouse or dependents, a term life insurance policy is important for replacing your income if you were to die during the policy’s term. Kamel recommended this type over other common options, such as whole life insurance, and the premiums are much more affordable.
“Just stick to a term life policy that is 10 to 12 times your annual income with a term that’s 15 to 20 years in length,” he said.
According to Kamel, the goal is to have enough money invested by the term’s end that you can self-insure and no longer need to pay for a policy.
Renters or Homeowners Insurance
Whether a tornado, fire or other disaster destroys your place, you’ll need insurance so that you’re not left without funds to rebuy the things you need and rebuild or relocate elsewhere. Kamel added that good coverage provides more benefits, like liability and additional living expenses coverage.
If you’re a homeowner, you’ll need a homeowners policy that covers all the key areas and has any necessary add-ons, such as flood insurance. If you rent, you’ll get a renters insurance policy instead; the property owner’s insurance usually covers the building itself but not your personal belongings or liability. Kamel recommended a $20,000 limit for renters coverage.
Long-Term Disability Insurance
The Social Security Administration estimated that 65% of private sector workers didn’t have long-term disability insurance, which Kamel said often provides funds for up to five years after you’re declared disabled. Without this coverage, you could struggle financially for years. This protection may not be too expensive either, especially if you’re not doing dangerous work.
“Typically, the price for a policy is around 1% to 3% of your annual income, but the cost will mostly depend on the physical risk associated with your job,” Kamel said.
Talk to a financial advisor or an insurance agent about your options, including any-occupation and own-occupation plans.
Long-Term Care Insurance
A 2024 Genworth and CareScout survey found that the national median long-term care costs ranged from $2,167 monthly for adult day healthcare to $10,646 for a private nursing home room. Unfortunately, Medicare often won’t cover these costs, and you can quickly drain your savings.
Since the majority of Americans will someday require long-term care, Kamel recommended long-term care insurance for people 60 and older. While the premiums can get expensive, the coverage helps protect your net worth and gives you more options for how you get care, such as at home.
Identity Theft Protection
The Federal Trade Commission received around 1.1 million identity theft reports in 2024. Having experienced identity theft before, Kamel recommended getting an identity theft protection plan, which can help you recover if a fraudster steals your information or damages your finances.
Besides saving you time and providing substantial coverage in case an incident happens, this type of protection usually includes helpful features, such as continuous monitoring of your financial accounts, Social Security number and other personal information. You’ll also get periodic alerts.
Umbrella Insurance
“Umbrella policies cover the legal battles and freak accidents where you get sued for more than your regular insurance will cover,” Kamel explained.
He recommended this often-overlooked insurance as a supplement to auto and homeowners coverage for those with a net worth exceeding $500,000, as having more wealth can increase the chance of a lawsuit. It’s also relatively affordable with $1 million policies sold for around a few hundred dollars annually.
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