While the concept of insurance is pretty straightforward, the public generally does not understand its own needs, financial advisors say.
"People think automatically of home and auto insurance and have a comfort level with them," said Juli McNeely, certified financial planner with McNeely Financial Services and immediate past president of the National Association of Insurance and Financial Advisors.
But where it gets more difficult is with types of insurance that are not required, she said.
"Life, disability, long-term care — these are covering risks that could jeopardize your future savings plans, and they have their own complexities," said McNeely.
Consumers are missing the boat in many ways.