About a year or so ago, a major consumer protection magazine reviewed books about personal finance written by the well-known gurus on the subject. The magazine found that the subject of insurance was hardly covered at all.

If you think about it, this is a strange failure on the authorsí parts. Without insurance the best laid financial plans can disappear in a moment of inattention or a puff of smoke. All you saved and invested can be gone in seconds.

Insurance is here to make sure an accident does not destroy you. It protects against fire, flood, theft and collision.

It will defend you if you injure someone in an accident.

It will allow your surviving family to carry on for a time without the income you produce and it will even replace that income if you become disabled.

Many people donít believe that a disaster will befall them. Or they want to spend the money on something thatís more fun.

But as expensive as insurance may seem, and certain policies, like disability insurance can be quite costly, it is substantially cheaper than the alternative.

If you home burns down and you lose it and its contents, the premium you pay now will seem like peanuts.

If you run someone over with your car and cause them serious injuries, the cost of your legal defense alone is many times what you pay for the policy.

Insurance is the difference between picking yourself up and carrying on after a disaster or facing bankruptcy and financial ruin.

In my opinion every wage earner should have term life and a disability income replacement policy.

If you own a home or rent, you need homeowners or renters insurance.

If you have a car, auto insurance is mandatory in most states ñ and donít think the legal minimums required by most states will protect you in a serious accident.

Finally you need good health insurance coverage, preferably backed up by a high limit major medical policy.

Prepare for lifeís risks so you donít become one of its victims.

About the Author:

Chris Cooper, a retired attorney, and his wife Aileen, who has an MBA in Finance, provide personal financial planning advice at Credit Yourself ñ http://www.credit-yourself.com