Are You Covered? Insurance for Different Life Stages

Everyone understands the importance of insurance, whether it’s for your home, car, health, or life. But many don’t realize the amount and type of coverage you need changes depending on where you are in life.

This is why having the right insurance for different life stages is so important. This guide can help you navigate those decisions and shield yourself against the risks and uncertainties life can bring.

Get Covered: Insurance for Different Life Stages

College Students

Many students are still eligible for health and auto insurance through their parents’ plans and they don’t typically have dependents or property. This may lead you to think students don’t need to be part of the insurance conversation, but there is one type of policy which could make a difference to your finances: a hospitalization policy. Hospitalization policies cover unexpected medical costs students accrue from surgery or hospitalization, essentially shielding them and their parents from going into debt to pay for medical expenses.

Young, Single, Working, and On Your Own

The most important types of insurance in this stage of life should include health, renters, auto, and disability insurance. Most likely your employer will provide health insurance for you, but if they don’t, it is important to research your options to find the best rates available. Renters insurance is very affordable and often required by landlords. It will help protect you in the case of stolen or destroyed property (think jewelry, laptops, or other big-ticket items). And when it comes to auto insurance, it is important to shop around and find the most competitive coverage.

Finally, for this stage of life, disability (or critical illness or income replacement) insurance should be considered. This type of insurance pays a portion of lost wages if you are unable to continue your job due to an accident or illness. Because there are limits and gaps in coverage from your employer, state, and workers’ compensation, it is vital you also have your own disability policy.

Newly Married Homeowners

As a newly married couple with a house, it’s time to turn your attention to life, homeowners, and liability insurance. The last thing you want to do is get married, buy a new home with your spouse, and unexpectedly pass away. In this extreme case, you would be leaving your spouse with the responsibility for paying off the entire mortgage with one income. If you have life insurance for yourself, you could alleviate such a risk.

Speaking of your home, homeowner insurance policies vary in what they cover, so it is important to make sure you understand the terms. Weigh the pros and cons of purchasing a more expensive policy to pay for the full cost of rebuilding your home and for replacing your possessions versus a policy which just pays for your home’s market value. 

Finally, you should also consider liability insurance, also known as umbrella coverage, which essentially will protect you beyond what homeowners and auto insurance covers. Because your net worth is growing, this type of insurance is important.

Proud Parents

The most critical types of insurance to have at this stage include life insurance and health insurance for your children, as well as disability insurance. In the bustle of adding a child to your family, it’s easy to forget about paperwork and logistical details, so make a note to add your new little one to your existing medical policy within a month of their birth so you don’t run into any coverage issues. 

If you don’t already have a life insurance policy, now is the time to get one. If you do have a policy, be sure to boost your coverage to include the future cost of raising a child, college costs, and maybe even coverage for a stay-at-home parent. Either way, make sure your children and spouse are taken care of should anything happen to you.

Another type of policy to revisit is disability insurance. Since you are providing for children, possibly paying off a mortgage, and reworking your budget to include childcare or a reduced income for a stay-at-home parent, your income needs to be guaranteed. Make sure you cover the risk of not being able to work due to an injury, accident, or unforeseen complication.

Empty Nesters and Pre-Retirees

This is a pivotal life stage where making decisions for the future comes into play. You may still need many of the above-mentioned policies, but you should also look into long-term care insurance. This type of insurance covers the future costs of long-term care, which may include in-home care or the costs of living at a nursing home to assist with the basic personal tasks of everyday life. There could come a time when you cannot take care of yourself independently, and you don’t want to drain your savings to get the care you need. There are different types of policies, including traditional LTC policies or hybrid LTC policies, so do some research to find the best choice for your situation.

Retirees

Once you retire, your insurance priorities change. For the most part, you will not need to protect your ability to earn income since you are no longer working. However, as you get older, insurance can significantly lessen the impact of medical expenses and long-term care costs. 

When you officially retire and lose your employee healthcare coverage, you will either have to reassess or obtain new coverage on the following: health insurance, Medigap, Medicare prescription drug plans, and long-term care insurance. If you retire early, you may need an additional short-term health insurance policy since Medicare does not kick in until you reach age 65. It is also important to consider Medigap policies since Medicare will most likely not cover all of your medical expense needs. Also, because Medicare Part A and Part B do not cover most prescription drugs, you will need to shop around for Medicare Prescription Drug Plans (Part D). Finally, as discussed in an earlier stage, it is very important to make sure you have LTC insurance. The longer you wait, the more expensive this type of coverage will be.

And remember to take the time to review all of your in-force policies to make sure you aren’t over-insured, and update beneficiaries of your life insurance policy as needed.

Need Help With Insurance for Different Life Stages?

At The Rosamond Financial Group, we understand insurance decisions can quickly become overwhelming. As life changes, so do your insurance needs, and it’s important to have coverage to fit your current stage of life.

Our team is here to help you make sense of it all. We’ll work with you to identify the policies and coverage to align with your goals and personal circumstances.

If you’d like support in navigating insurance for different life stages, or want to learn more about how we can help we invite you to reach out today. Book a free introductory meeting online and we’d be happy to connect with you.

About Preston

Preston Rosamond is a financial advisor and the founder of The Rosamond Financial Group Wealth Management, LLC with over two decades of industry experience. He provides comprehensive wealth management and financial services to successful business owners, corporate executives, and affluent retirees who enjoy simplicity and seek a professional to help them pursue their goals. Preston personally serves his clients with an individual touch, a sincere heart, and his servant’s attitude is evident from the moment you meet him. Learn more about Preston or start the conversation about your finances with him by emailing solutions@rosamondfinancialgroup.com or schedule a call on his online calendar.