Essential Insurance Policies at Different Stages of Life

purchasing a home

All of us need basic insurance policies, such as life, auto, health, and disability, but priorities differ among the life stages. As soon as we’re no longer covered under our parents’ insurance policies, we have to start signing up for the coverage that will protect us against unexpected events in life.

Here are the different insurance priorities you should have at each different stage in life:

Young adulthood

You’ve just turned 18 and are now a legal adult. Do you have to get your own life and health insurance immediately? If your parents can keep you on their policies until the maximum allowable age, the answer is no. Otherwise, you have to sign up for a policy under your own name as an adult.

But do you really need life and health insurance policies when you’re young and healthy? Most young adults don’t think so. But if something happens to you, such as a severe illness or untimely death, how can you make sure you and your family are covered?

If you’re no longer a beneficiary of your parents’ insurance, protect yourself with life and health insurance policies. In addition, you should get an auto insurance policy when you buy your first car in Taylorsville and other areas. You should also have disability insurance when you enter the workforce, especially if you have a risky job.

Marriage and childbearing

Before you have a spouse and kids, life insurance is not seen as a necessity. But once you get married or have children, whichever comes first, life insurance becomes essential.

If you die unexpectedly, a life insurance policy will make sure that your spouse and children are financially protected. It’s recommended that you sign up for a life insurance policy before you even try for kids; you never know what can happen and you don’t want to leave your family financially insecure. But if you already have a policy, adjust your coverage to extend it to your new children.

man putting ring on bride's finger

Middle adulthood

You’re in your 30s, 40s, or 50s. By now, you should have life insurance, auto, health, and disability. Assuming that you already have comprehensive policies for each type of insurance, what else do you have to have when you reach this life stage?

Middle adulthood is all about securing your family even further and preparing for retirement. If you buy a house, get homeowner’s insurance to protect yourself against liability. If you buy other investments, such as a boat or another car, sign up for insurance policies to protect your personal assets.

When you reach your 50s, you’re already nearing retirement. By now, you should consider getting long-term care insurance that will help pay for long-term care (e.g. nursing home, hospice) when you’re no longer able to live independently.

Senior years

Now that you’re retired, you have fewer insurance policies to think about since your dependents are no longer minors and you’re already out of the workforce. At this life stage, having a comprehensive insurance plan is the most important thing, especially if you have a predisposition to diseases.

During this time, you should also start looking into funeral insurance to cover your funeral and burial expenses.

Do you have the necessary insurance policies at your current stage? If not, start looking at the policies you need to protect yourself against unexpected mishaps, even if you are still young, healthy, and single.