How to Match the Right Insurance Policy to the 4 Stages of Life

Our insurance needs change as we move through our lives. An insurance policy that is right for a young person with a family will have different requirements than the one that is best for an empty nester. This guide will help you decide which type of insurance is best suited for your needs based on the four stages of life.


Stage 1

One of the most common objections I hear when I travel the beautiful state of Missouri is “Why do I need life insurance?” I am young, single, and healthy. This is the best time to purchase life insurance. Life insurance will be cheaper if you’re younger and healthier.

You may not need life insurance if you’re young and single, but it is a good time to get it. Young people can make a good investment in a small life insurance policy, perhaps 50,000 to 100,000. This policy will remain in force regardless of your age. You will always have insurance, no matter what happens to you health.


Stage 2

You marry, buy your first home and have children. You will need sufficient insurance to cover your mortgage in the event of an emergency. Also, you want to ensure that you have enough money to support your growing family. You should also consider college expenses. A term policy or universal life insurance are two options.


Stage 3

My friend said that life begins when your dog dies and your kids graduate college. Your home is almost or fully paid off. Your children have their own lives and can no longer rely on you for support. Now, your concern is to save enough money for retirement. You may not need the 50,000 Life policy that you had when you were stage 1. You should also consider long-term care, Universal Life, and Annuities during this stage of your life.


Stage 4

The Golden Years. It is important to ensure that your retirement savings don’t run out. Also, you want to safeguard your assets. Your three main concerns during this time of your life are Annuities, Long Term Care, and Medicare Supplement.

 

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