It's one thing to generate income and accumulate assets, but it's another to take care of them. You have responsibility to your children — and yourself — to protect your assets. You must read through all the fine print, learn the basics, and then talk to experts who can put the proper insurance protections in place.

If you have a valuable possession, or earn a high income, insurance salesmen will go overboard to sell you multiple policies. While some insurance isn't needed, or simply isn't affordable, you do need some basic types of insurance. The primary ones include these:

• Health and dental insurance: This allows you and your children to receive the preventative care and necessary treatment you deserve.

• Life insurance: This provides funds to pay for your funeral expenses, pay off the mortgage, fund college, and pay your children's living expenses until they are capable of taking care of themselves.

• Homeowner's or renter's insurance: This protects the structure of your house and its contents from unforeseen events such as fire, theft, or adverse weather.

• Car insurance: This protects you and your children in case you are involved in an accident or in case of theft or damage to your vehicle. It also protects you from being sued for your assets if you are the cause of an accident.

• Disability insurance: This provides a percentage of your current level of income in case of illness or accident.

In an ideal world, you would have maximum insurance coverage. In reality, you may have to make crucial decisions between what you really need and cannot afford to be without and what you can realistically afford.