Part of finding financial stability is making sure you have protected your most important assets. While most people take different financial accounts into consideration when it comes to building a financial plan, such as retirement accounts and CDs, many forget about taking insurance policies into consideration.

Insurance policies can help protect not only your family from a disaster, but also your financial situation from disaster. They can provide a protective shield over your most valuable possessions. While there are many insurance policies available, here are the top four every person should have:

1. Automobile Insurance

In most areas, auto insurance is required by law. However, regardless of whether or not you are required to have it, it is one policy that should not be overlooked. With all of the drivers on the road, many of which are not paying the road any attention, there is a high probability that you could get into an accident. If you are involved in an accident, having insurance can truly make or break the situation. If someone was injured in the accident, you could be held responsible and taken to court over the situation. Conversely, if you were injured but have no insurance, you could not get the proper care that someone else would receive if you had an insurance policy.

Although automobile insurance can be pricey, there are companies that offer solid protection without a large price tag, like Erie Insurance. In order to find the right policy for you and your family, to the time to research Erie Insurance, or similar companies to ensure you find the coverage you need.

2. Home Insurance

Similarly to car insurance, home insurance is a policy that should not be ignored. If something were to happen to your home, like water damage or fire damage, your insurance could help to cut the financial damage considerably, if not all together. However, without insurance, not only do you have to deal with the damage, you also have to find the money to pay for the damage.

3. Life Insurance

When cutting back financially, one of the first places people consider is their life insurance policy. However, life insurance was created to protect those financially dependent upon you. While life insurance can be costly each month, it is for the purpose of your family. If the worst should happen, you could rest assured that your family was at least financially taken care of.

4. Health Insurance Although the health care industry is in a bit of chaos due to recent health care changes, it is still important for people to have health insurance. Medical bills and doctor's visits are not cheap, and having insurance can help to alleviate any medical costs that might arise. The alternative is to be without health insurance, and should a medical emergency arise, your finances could be severely damaged.

While it can be easy to assume nothing bad will ever happen, unexpected events arise all the time in life. Having insurance is for the purpose of easing those unexpected events in order to make the burden lighter.