As your life changes, so do your life insurance needs. After all, the policy you purchase when you’re just starting out may not meet the coverage needs you have as you age and approach milestones like retirement. Life insurance is an important safety net for your loved ones, so it’s important to make sure your policy offers the best coverage throughout the different phases of your life. But how do you know what option makes the most sense for you? Let’s walk through what your needs might look like during common stages of life to help you make informed decisions about your coverage.
Guide to Approaching Life Insurance at Different Stages of Life
Single Adults
You might be thinking, “Why would I need life insurance as a single adult?” Consider a term life insurance policy, which is a policy type that only offers as much coverage as you need. Therefore, it makes sense to purchase when you have specific expenses in mind, like student loans, credit card debt, or mortgage payments. It could ensure your family and loved ones are supported and not burdened by this debt if something were to unexpectedly happen to you. More importantly, the sooner you purchase a life insurance policy, the lower your rates will be, which makes purchasing the policy as a young adult even more appealing.
Newly Married
There’s so much to celebrate at this time in your life, but getting married brings up many financial decisions, one of which is life insurance. To identify how much coverage you might need, it’s important to think through how much you would need to replace future lost income and any other debts that would potentially burden your new spouse. An easy way to get started with figuring that out is with our term life insurance calculator.
Parents
As a parent, you’re always looking out for your child’s best interest. Life insurance is a smart way to plan for your child’s future in case you’re not around. Even if only one parent works, it’s important that both parents consider a life insurance policy, as the cost of raising a child could have a significant impact on your budget. Not only will you want to consider enough coverage for the 18 years your child is a minor, but it’s important to also consider the cost of future expenses like a college education. You’ll also want to take into consideration the amount you would need to cover bills that directly affect your child in the case that one parent’s income is lost.
Starting Over
A divorce or the loss of a loved one are life events that often require you to reassess your finances. From the beneficiaries to the amount of coverage you need, your life insurance policy should accommodate your new budget and life changes. You might want to consider a policy that could provide income during retirement or a term policy that can cover the cost of something like child support payments.
Retirees
You might be wondering if you still need life insurance once you’re retired. While the need for coverage may not be as substantial as before, there are a few benefits that can come from continuing your life insurance policy. A permanent life insurance policy that earns cash value over time can be a good way to supplement your retirement income as well as provide lost social security income for a surviving spouse. The funds received from life insurance can also help cover the tax bill that can come from passing on assets to your children or grandchildren.
Find the Life Insurance That’s Right For You
It’s uncomfortable to think about what would happen to your loved ones if you pass away, but having the right life insurance policy can offer much-needed peace of mind. No matter what stage of life you’re in, you’ll have many factors to consider when purchasing life insurance, and the fine print can be overwhelming. Let SelectQuote do the legwork for you. We’ll shop some of the most trusted carriers in the country on your behalf and compare prices and coverage to provide you with the right option for your needs.
