You probably should consider five basic lines to see if they apply to your situation:

• Auto insurance-If you own or lease a car or are planning to in the near future, you will want to protect that investment with auto insurance. This coverage helps you cope with the expense of accidents, vandalism or theft. In addition, if you are financing the vehicle, the lending institution probably will require that you carry auto insurance. Another area that needs protection is your liability. If you are sued because of damage your vehicle caused, auto insurance will help with legal expenses and any damages you have to pay.
• Health insurance-To cope with today's high medical costs, virtually everyone needs health insurance. Following graduation, you may no longer be covered by your parents' policy, so you may need one of your own.
• Homeowners or renters insurance-Whether you own a home or rent an apartment, you want to make sure your possessions are protected. Both homeowners and renters insurance offer comprehensive coverage at home and when you travel. They also offer liability protection should you be sued.
• Life insurance-If you have dependents or are interested in purchasing life insurance that builds value as you pay the premiums, talk with your agent about the plans available.
• Disability Insurance-This is designed to provide required income should you be injured or disabled. The extent of coverage should be enough so that, when combined with your other assets, you would have enough to live on.

What kinds of insurance do I not need?

You probably do not need the following unless there are special circumstances:

• Air travel insurance. It costs too much and is not comprehensive.
• Life insurance if you are single with no dependents and do not have your own business.
• Very specific policies like contact lens insurance or cancer insurance. It is usually better to have comprehensive policies like renters or health.