Nowadays, it is possible to be insured against all sorts of risks. But, it may not be necessary to cover yourself against all risks.

To help you decide what insurance you need, make a list of the risks or events that concern you. Assess the likelihood of the event happening and the financial loss you or your dependants may suffer if so. Consider how you would cover the financial loss. Buying a watch to replace a lost one might be fairly easy, but large hospital bills could set back your retirement goals if you haven’t some savings or insurance to cover this. If you already have some insurance policies, check to see if these cover you for the risks you are concerned about.

If you have just started work or are managing your own financial affairs for the first time, you are likely to want some life insurance if you have a family or parents to support. How much life insurance coverage you buy might depend on how many dependants you have and how old they are. For example, if you have older children and your spouse is working, you may not need as much. Also, you should only commit to what you can afford. Buying life insurance is about getting what you need not about how much you are worth.