There are many types of insurances. Some are required by certain states and some are optional. The world will have you believe that you need them to survive. If you save and prepare, then you will not need most insurance. You will almost always pay more than you will get from those companies, so be wise in how you invest in insurance.
The insurances that are typically not optional are house and car. Really shop around and find the best deals to work for you. The optional insurance is liability, life, health, disability, and business. If you opt-in for these, be careful that you do not allow salesmen to scare you into more than what you really need. Look at your budget. Will certain insurances mess up your budget similar to having a mortgage you can't afford? If the answer is yes, then you need to look into other options. You don't want to be insurance poor any more than you want to be house poor.
Pray over your insurance and other investments to feel confident that you are handling God's money well. Insurance and annuities can become very complex. You need to educate yourself or work with someone that understands how it works and you trust to guide you with integrity. Using wise counsel helps make you wise.
Health insurance is normally dictated by your job, but you always have the option to go outside and find a solution that works for your household. It is meant to be used at the doctor office, hospital, medicine, and related expenses. The insurance company is hoping you will never use the money that you invest. You invest because you are afraid of something happening. You need to pray not to be afraid, but prepared and how that looks for your household.
Life insurance is for the people that survive you. It should take care of all funeral expenses and along with the expenses that led up to your death (hospital, car accident, hospice, and more). Life insurance provides a lump sum of what you signed to pay on until your death. It can be used in whatever capacity that is needed. If you prepare and pay for all your funeral expenses ahead of time, then your family can use the money to pay off the mortgage or any other debt. If you don't have any debt, then you may not need life insurance. However, if you have been paying on it for many years, then don't just close it out. Look into your options.
How do you budget for each insurance. If you get medical insurance through work, then you just add what the monthly cost will be for other insurances to that. Do your best to make sure it does not exceed 5% of your net income.
When it comes to calculating life insurance look at what the bread winner makes, subtract their needs if they were to die, subtract the income you will get (SSI, investments, retirement benefits), and net annual income needed. This helps you figure out your new reality needs with one less paycheck to determine a new standard of living.
Basically you want to make sure that life insurance will cover the funeral expenses, pay off the mortgage, and cover any major needs that your loved ones will have. Some people will calculate what they think college will be for a child. Do not forget that there will be taxes taken on this too. There are many types of life insurance out there, so make sure you find what works for your household and possibly future household. If you are going to do life insurance, then you want to start young when it is cheap. The younger you start, the more it works in your benefit.
Proverbs 6:6-11, 22:2-5, 27:12-13, Ecclesiastes 3:1-8, Romans 13:1-7, & 1Timothy 5:8