-- Umbrella liability policy: For extra protection, you might also consider an umbrella policy. This provides coverage above and beyond your car or homeowner's insurance in the event that you might be sued for an injury caused by you or your property. What's the likelihood? Think of a neighbor taking a nasty fall because of uneven pavement on your front walkway, or a car accident for which you're responsible.

Fortunately, umbrella policies are pretty reasonable. For instance, you can often receive up to a million dollars in coverage for a couple hundred dollars a year. If you have your car and homeowner's insurance with the same company, ask them about an umbrella policy. You may be surprised how easy and affordable this extra peace of mind can be.

-- Long-term care insurance: The U.S. Department of Health and Human Services estimates that at least 70 percent of people over 65 will require some type of long-term care services at some point. Long-term care insurance isn't cheap, plus premiums and benefits vary widely. But whether you're concerned for yourself or aging family members, you should think about how the cost of care versus insurance would affect your overall financial health.

INSURANCE YOU CAN GENERALLY AVOID

Certain insurance types are usually unnecessary and can be a waste of money. For instance, if your mortgage is below 80 percent, you probably don't need private mortgage insurance. And the list goes on and on. To my mind, it's best to think carefully before purchasing any of the following:

-- Life insurance for kids: Remember, life insurance is for those who have dependents. You're not financially dependent on your kids, right?

-- Car rental insurance: This is usually covered by your own auto insurance and by some credit cards.

-- Pet insurance: Premiums can often be larger than average pet care costs.

-- Flight insurance: If you have adequate health and life insurance, that's probably sufficient. What are the odds of being in a plane crash?

-- Wedding insurance, cancer insurance, mortgage life insurance ... all should be taken with a large grain of salt.

A FEW WORDS OF CAUTION

Buying insurance can be tricky. Shop carefully, ask questions and read the fine print. This is about your present and future financial well-being. Take time now to make sure you have what you need; don't waste money on what isn't important.