What Kind of Insurance Should I Get? A “Do I Really Need…” Guide for Couples
When I think about insurance, I think of a spring afternoon when I was eight years old, and a tornado ripped through our lives (pictured above).
My mom taught special education. I have countless memories of her on the couch grading assignments and filling out paperwork. She worked harder than she let on and was relentless about being a great mother. Her health worsened over time after the storm. Eventually, she couldn't work.
We were blessed that she had purchased additional long-term disability insurance on top of what the state teachers' pension system provided. She could afford to not work, which should be the floor of expectations for our partners when tragedy strikes.
What I learned early on is that insurance is designed to protect the life you’re building together. Your family, your relationship.
For couples, insurance works best when you treat it as part of a shared system, not a collection of individual policies purchased in isolation. Here’s how I think through the most common types of insurance.
Do I Really Need Health Insurance?
Yes. You really need health insurance. Read my past post, No Health Insurance? What to Do, if you don't have health insurance.
Health coverage is one of the largest and most consequential financial protections most households have, so take time to evaluate your choices before deciding which plan is best for you and your family.
Below is a glossary of the most common health insurance costs to include in your calculations, or you could listen to this comedic (and true) explanation.
Specific considerations
Coordinate health insurance coverage with your spouse. Some employers include tools and calculators that allow you to compare the plans they offer. If you're self-employed, you'll need to use your own. Here are a couple of my favorites:
Health Insurance Marketplace Calculator (Healthcare.gov)
Click here to estimate health insurance premiums and subsidies for health insurance coverage through marketplaces
Health plan comparison calculator
Click here to use a comparison tool to help you determine whether an HSA is right for you.
I encourage you to consider an HSA. The tax benefits are among the best in the tax code, and the investment option is ideal for planning for rising health care costs in the future. Read HSA or FSA: Which is Better for Married Couples? to learn more.
Related: Managing Health Insurance in a Marriage.
Do I Really Need Life Insurance If We Don’t Have Kids?
Do you need life insurance if you don't have kids? It depends, but if you're married, the answer is almost always yes. That's because, in most cases, partners depend on each other financially, and life insurance replaces income if one partner dies.
Please, please, remember that a stay-at-home parent is also a financial provider. If that person were to pass, replacing the unpaid labor the partner provided can cost up to $200,000 annually.
Do I Really Need Disability Insurance?
Short-term disability insurance coverage makes sense in rare cases, but I strongly encourage you to build up 3-6 months in emergency savings instead.
But long-term disability insurance coverage is a different case entirely. As you learned earlier from my post, our family was financially healthy because my mother had adequate long-term disability insurance. Using data points shared by the CDIA, here are some convincing, eyebrow-raising reasons to purchase long-term disability insurance.
At least 51 million working adults in the United States lack disability insurance beyond the basic coverage available through Social Security (only $1,630 a month on average).
Roughly one in four of today’s 20-year-olds can expect to be out of work for at least a year because of a disabling condition before they reach the normal retirement age.
Workers’ compensation covers time away from work only if the disabling illness or injury was directly work-related. In 2024, less than 1.0 percent of American workers missed work because of an occupational illness or injury.
For dual-career couples, disability insurance is often more important than life insurance during working years. Losing income due to illness or injury is far more likely than early death. Learn more in my past post, Why Disability Insurance Is Important for Married Couples.
Do We Really Need Renters or Homeowners Insurance?
Renters insurance is one of the least expensive ways to protect against accidents and lawsuits. It's only, at least on average, $13-$20 a month. If you have valuables in your apartment or friends over often, then yes, you really do need renters insurance.
Homeowners insurance is expensive and usually required. My past post, Homeowners Insurance: The Basics and How to Cut Costs, offers a visual-centric, plain-language explanation of what you need to know.
Do We Really Need an Umbrella Insurance Policy?
Umbrella insurance extends liability coverage beyond the limits of your auto and homeowners policies, protecting assets and future earnings from lawsuits.
Do you really need it? You might. Your coverage may have gaps, or your needs may be unique based on your circumstances. It's definitely worth discussing with your insurance agent.
Do I Really Need Long-Term Care Insurance?
Evaluate long-term care insurance as part of a broader retirement plan, so I can't answer whether you need it. I suggest meeting with a financial professional bound by the fiduciary standard, which means they must put your interests ahead of their own.
The National Council on Aging wrote this comprehensive post that explains in detail what you should consider, along with the associated costs and benefits.
Professional Support
I can provide education-based guidance as an Accredited Financial Counselor® and a fee-only fiduciary. I do not sell insurance; I offer unbiased advice.
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