If you are willing to pay the premiums, you can insure almost anything.
Rocker Gene Simmons insured his tongue for $1 million, according to GEICO. NFL star Troy Polamalu has his hair insured — also for a cool million. A Dutch winemaker has insured his nose for $8 million, but the terms of the policy forbid him from riding a motorcycle or working as a fire breather or knife thrower’s assistant.
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You may be able to insure whatever you’re willing to pay for, but what types of coverage are always worth the cost of the monthly premiums?
Some experts think this is a trick question.
“I would be wary of anyone using the word ‘always,'” said Infinitive Wealth Advisory founder Mark Hayes, CFP, who has worked in the insurance space for nearly two decades. “Insurance is inherently a bet where some win and some lose. However, the worst bet you can make is choosing not to get a policy only to find out you need it.
These are the policies you’d (almost) always rather have and not need than need and not have.
Car insurance
The first is easy because, unless you live in New Hampshire, you must have it by law: auto insurance. Regulations vary by state, although nearly all 50 require minimum liability coverage. But no matter where you live, hitting the highway without it is a hassle waiting to happen.
“Car insurance is always worth the money, as being caught without it can result in hefty fines beyond what could happen to you in an accident,” said Paul Boudreau, insurance broker at Rowat Insurance. “A car insurance policy not only protects your vehicle, but also protects you as the driver when you are involved in at-fault accidents. If you’re in an accident without auto insurance, you could face medical bills, repairs, legal costs, and possible license suspension.
“Drivers can also consider optional collision coverage and comprehensive coverage, which will cover the cost of your vehicle after an accident (collision part) and for non-accident damage or if it’s stolen (full).”
Health insurance
You no longer face a federal penalty for refusing health insurance — but choosing to go without coverage doesn’t mean it’s a good choice.
“Health insurance is the primary insurance coverage you should have,” said licensed insurance broker and consultant Adria Gross, founder of MedWise Insurance Advocacy. “The leading cause of bankruptcy in the US is medical bills. You would not want to be faced with a hospital bill of over $50,000, $100,000, $500,000 or possibly $1 million and not have health insurance.
Home insurance
Your body costs more to repair than almost anything else, but the structure it spends most of its time in comes second.
“Far and away home insurance is one of the best investments you can make for your home,” said Yasmin Purnell of specialist insurance provider Surewise. “Many of us don’t think about the financial devastation of regularly losing our worldly possessions, but it’s much better to have this coverage before it’s too late.”
Home insurance covers either your home itself, just the things you have in it, or both, in the event of theft or vandalism, fire, flood, and more. The cost of replacing all of your belongings plus repairing your home in the event of a disaster such as a fire or flood can be financially devastating for many families; and although it is still an extremely traumatic experience, having home insurance at least alleviates some of the financial stress.”
Life insurance
If the people in your life depend on your income, life insurance is as close to a must as you can find.
“Whenever a person experiences a transition from ‘me’ to ‘we’, such as getting married or having a child, it’s a great time to consider life insurance,” said Sahang-Hee Han, head of strategy and planning at Haven Life , a subsidiary of MassMutual.
But not all life insurance policies are created equal.
Brian McHale, independent broker and owner of Policy Mutual, advocates term life policies over whole or universal because of their simplicity, transparency and low cost.
“Term life insurance is very affordable and the peace of mind it gives that your family is protected is well worth the money,” he said. “Life insurance, specifically term life insurance, is a non-negotiable for anyone who has loved ones who rely on their paycheck for life’s necessities, such as food, shelter, and daily living expenses.”
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This article originally appeared on GOBankingRates.com: 4 types of insurance that are always worth it, according to experts