Insurance policies are around for important reasons. Mainly, they are availed for protection against unforeseen risks in various aspects of life like education, home and death.

Having to choose what type of insurance to get can be confusing since there are so many of them. You may even wonder if you need to buy them all. While you pass up or buy some policies later, there are kinds that you must invest in now, no matter what.

Evaluate your lifestyle and needs. Short list the things that you have to protect. Keep in mind that insurance is there to help you out in case something happened and you can't afford to pay for it like medical costs or car accidents. Here are the top 5 policies that you absolutely need to buy this year:

Life insurance

No one knows what will happen in the future and you do not want your family to suffer in the event of untimely death. Protect your family by leaving them secured.

Though this type of insurance will not protect your family from sudden loss of income, at least it can aid them in covering some expenses at home or they can use the money for start-up business that will sustain the family through the coming years.

Health insurance

Many people do not have this policy but you need this. It is better to go for long-term health insurance and get it before the day comes that you need it.

The rates for this policy increase as you get older because the likelihood that you will need it also goes up. This will pay for your medicare expenses later so decide on it wisely.

Disability insurance

There are instances in life when someone lose their ability to earn after becoming disabled. This is something that no one can avoid so what will you do if you cannot cover your living expenses anymore?

Your medical expenses can also increase especially if the disability resulted from an accident. How will you pay for it then?

"Disability insurance replaces one's income if we become incapacitated during our working years. It's very important when only one person in the household has an income or one has a much larger income than their spouse," president of Armstrong Wealth Management Group in South Carolina Regi Armstrong stated on US News.

Auto insurance

If you have a car, you certainly need this. In fact, the law states that driving without any insurance is prohibited. While you may not be jailed for being caught driving without coverage, you will be fined and your driver's license suspended.

According to Department of Banking and Insurance in State of New Jersey, "If you do not have any liability coverage, you are responsible for paying for the pain, suffering and other personal hardships and some economic damages, such as lost wages, that you cause."

"The insurer will not provide or pay for a lawyer to represent you if you are sued. Your assets will be at risk, including the risk of having money deducted from your wages if a judgment is entered against you. And, if you lack coverage and someone hits you, you cannot sue."

Homeowner's insurance

If you own your house and it is on mortgage, it is a must to have the right homeowner's insurance protection. This is also a requirement for most mortgage companies so it is needed. And even if you bought your home in full cash, you need it to cover for very expensive home repairs or replacements that you cannot afford.