Different stages of life require different types and levels of insurance. When was the last time you took a step back and looked at your insurance landscape? If you are recently married, awaiting children, nearing retirement or somewhere in between, insurance is an important tool to protect your assets from unexpected events. Let’s walk through various types on insurance and when you may start to consider looking into them.
Life Insurance
Life insurance products offer income to family members after the policyholder dies. It offers a variety of benefits including retirement income, death benefits, building cash value and ultimately protects your family from financial insecurity. Life insurance can be used to build wealth or guarantee income. You may opt for universal or term life insurance depending on your financial goals and stage of life.
Many add life insurance to their financial landscape once another family member enters their life whether it be a spouse or child. This ensures that any income they depend on from you is protected in case of unexpected circumstances. If you are in this phase of life, begin to consider life insurance as an option to protect your family and develop generational wealth.
How much do you need? There are many schools of thought for determining how much life insurance is necessary. Some experts recommend multiplying your income by 10. Others suggest totaling financial expenses and then subtracting by your assets. Whether you choose to use a life insurance calculator or another method to determine the amount, do your research and make an informed decision for your specific family situation.
Home Insurance
Home insurance is a must when you buy a home. The most prominent consideration in home insurance is ensuring you have enough to cover the structure in the case of a rebuild. Some will use the home’s price as a guideline, although, it is important to consider that rebuilding your home could cost more due to the rise of real estate costs, inflation and labor costs. Work with your insurer to determine a recommended amount then educate yourself to ensure you and your family are covered in the event of an emergency.
Auto Insurance
We are all familiar with car insurance. We have seen all of the commercials and purchased this ever since we started driving a car. The benefit of reviewing your car insurance is the potential savings you can find by adjusting carriers and the amount required. Every state has a minimum amount required to own, but you could benefit from raising or lowering your coverage based on your current financial goals. Look at auto insurance as a level you can pull to either increase your protections or lower overhead costs.
Long-Term Care Insurance
Long-term care insurance is an important option as we age. It provides coverage for long-term care expenses in senior years. Nealy 70% of 65-year-olds will need some form of long-term care in their lives but only 25% of adults have considered long-term care insurance options. This insurance protects wealth acquired throughout one’s lifetime by protecting it from some out-of-pocket health costs as your age. It also protects your family from high financial costs for your case allowing generations to come to enjoy the wealth you have accrued.
Insurance is an effective method to protect your wealth, family and dignity. Revisit these periodically throughout your financial journey to work toward a solid financial future.
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Bankers Life is here to help customers with their financial and insurance needs so please visit us at BankersLife.com to learn more.
