International Herald Tribune offers an excellent recap of some commonsense insurance must-knows.

1) Some insurances are a waste of money:

Rental collision damage waiver
Extended warranty insurance
Flight insurance
Credit and mortgage insurance
Children's life insurance
Cancer insurance
Pet insurance

2) Increasing deductible is the single best way to keep insurance cost low while still keep necessary protection

3) Cash value insurance is a sucker for most people

4) Underinsurance is another problem: don't ignore medical insurance; sufficient coverage for home insurance is a must too.

Being a professional in corporate finance, I am quite risk-averse. Here is my insurance portfolio:

Insurance Thru Employer:

Medical: 100% coverage with zero deductible for family
Dental: 50%-100% coverage with $25 annual deduction for family
Term Life Insurance: $500,000 for me, $250,000 for my wife
Accidental Death and Dismemberment: $750,000 for family

Other Insurance:

Home: ($330/year)
$200,000 on Dwelling (rebuild cost)
$100,000 on Personal Property
$500,000 on Liability
With $1,000 Deductible

Auto: ($320/six months)
$500,000 on Liability
Compenhensive with $500 Deductible
Collision with $1,000 Deductible
Uninsured Motorist Body + Property

Umbrella Insurance: ($99/year)
Lifting home and auto liability by $1,000,000

Besides, I am still debating (with myself) whether to add more term life insurance coverage and purchase earthquake insurance.

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