It can be challenging to determine when you need insurance. When considering insurance and what may be necessary at every stage of life, many individuals will think of health and life insurance. But other types of insurance could be beneficial as well.
Keep reading for a review of each stage and which policies may be needed.
Single, Young Professional
You may need a few different insurance policies as a single, young professional. While life insurance is a good idea to buy when you are young and healthy, it may not be a priority for most, especially if you are living paycheck to paycheck or do not have a ton of disposable income.
Young professionals will definitely want to consider buying an auto policy, if they have a car, and a renter’s insurance policy. State regulations or financial institutions will most likely require a car insurance policy for many individuals, so this policy is almost always a given. But many may overlook the usefulness of a renter’s policy.
A renter’s policy will provide coverage for your personal property if you rent your home. This is important as landlords will not cover any of your property in a loss to your home. Consider laptops, clothing, other electronics, furniture, or books that you may have accumulated and will have to replace if there were a fire or theft.
In addition to personal property coverage, a renter’s policy will provide liability coverage, which can be beneficial if you are responsible for causing a loss, such as if your dog bites someone.
Speaking of pets, if you have any, you will want to consider pet insurance. This policy acts as a health insurance policy for your furry friends! This policy is worth purchasing as it can save thousands of dollars if your pet has significant health concerns.
Newly Married Homeowner
As a homeowner, especially if you are newly married, you will want to consider adding homeowners insurance and a life insurance policy. Almost everyone understands the importance of home and life insurance separately. But you may not know that life insurance and home ownership often go hand in hand.
The reason is that when you own a home, you will most often have a mortgage unless you pay for the home in cash. If you were to pass away, you would want to leave your loved ones with enough of a financial cushion so they can pay off the mortgage and take care of your funeral and burial expenses.
This is where life insurance can come into play. Purchasing a large enough life insurance policy to cover these expenses will help your dependents tremendously after you are gone.
Family Oriented Breadwinner
Once you start to raise a family, your insurance needs will change. In addition to the standard auto, home, health, and life insurance policies you should already have, you may also want to look at adding disability insurance. This insurance policy will protect your income if you are too injured or sick to work, which can be particularly important to someone with a family to support. At this stage of your life, you may have children, so increasing the amount of life insurance or liability on your auto and home policies is a good idea. An umbrella policy may also become necessary.
Retirement And Beyond
Once you hit retirement age, you generally do not need as many insurance policies as you might in previous stages. By this point, your children should be out of the home, and your need for increased liability may be lower. If you are no longer working, disability insurance may not be necessary. If applicable, you should maintain your life, auto, and home insurance policies and consider an annuity to help with retirement income.
Final Thoughts
Insurance is essential to everyone, whether you are a young professional just starting out or a retired worker with numerous assets. Working with an independent agent or broker is a great way to ensure you have an insurance policy for every phase of life, regardless of which one you are in.
Contact our office today for an assessment of which policies are right for you!
