GUIDELINES FOR INSURANCE AT EVERY LIFE STAGE
HERE IS a framework for the types of insurance that you need at the different stages of your life:
Student
Your main risks and cover needs:
1. The risk of your family “inheriting” your student loan debt. Solution: death cover.
2. The risk of a serious injury. Solution: accident cover.
Single and starting a career
Your main risks and cover needs:
1. Burdening your family with any debts you incur (student loans, car). Solution: death cover.
2. The risk of losing your ability to earn an income. The most important kinds of cover you need are income protection and disability.
3. The risk of paying more, later. A top tip is to consider putting some additional life insurance in place, as it’s at its most affordable now, when you’re young and healthy.
In a serious relationship and considering your first home
Your main risks and cover needs: The same as with young adults, but also focus on protecting yourself – and your partner – from debt. Consider credit life insurance and some additional death cover.
Young family or considering having children
Your main risks and cover needs:
1. If you are dependent on two income streams, there’s the risk of losing an income should one partner pass away, rendering your family unable to support its current lifestyle. Solution: death cover and sufficient income protection, as well as disability cover. Death cover is the best way to ensure your young children are provided for.
2. The risk of burdening your family with debt. Solution: death cover.
At the peak of your career
Your main risks and cover needs:
1. Health risks, like cancer and heart disease. Solution: severe illness cover.
2. The risk of your loved ones hastily having to sell the assets you’ve worked so hard to build up to pay for any final expenses and settle estate costs, should you pass away. Solution: death cover.
3. Your life insurance needs may change as your children become more financially independent and you start to pay off your mortgage. Check in with your financial adviser.
4. Ensure you still have income protection and disability cover.
Retirement
Your main risks and cover needs:
1. Although you might have paid off most of your debts, death cover is still the best way to protect your family from any outstanding debt.
2. The costs of winding up an estate, in the form of estate duties or executor’s fees, can be substantial for your loved ones. Solution: death cover.
3. There’s also the risk of your family paying for your funeral. Solution: funeral cover.
4. The risk of your spouse losing a substantial portion of your pension, should you pass away. Solution: death cover, as life insurance can replace such an income loss to ensure your partner can maintain their current standard of living.
5. The risk of serious, lifechanging events such as cancer or Alzheimer’s, which could require long-term care. Solution: severe illness cover.