Insurance needs at different life stages

When we talk about age, we usually talk about a specific number. But if we talk about life’s stages, the numbers don’t really seem to matter. Instead, it becomes the “at school stage,” the “single stage,” the “new house, young kids stage,” and so on.

When we talk about age, we usually talk about a specific number. But if we talk about life’s stages, the numbers don’t really seem to matter. Instead, it becomes the “at school stage,” the “single stage,” the “new house, young kids stage,” and so on. 

Every life stage defines a chunk of time — time that differs for everyone. 

In other words, people reach different life stages at different ages. So when you’re analyzing your insurance needs you need to consider your current life stage and the products that can meet the needs for this stage.

Term insurance 

This can be the perfect choice for many life stages. Commonly known as temporary insurance because you pay premiums for a limited period of time and then the insurance expires. At younger ages, term insurance is less expensive than other kinds of insurance, so it is often used by people with young families. Term insurance can also be a good choice for mortgage or debt insurance. Some term insurance policies will allow you to convert your policy to permanent insurance without needing to provide more evidence of good health, this is typically allowed to age 75.

Permanent insurance

This is as the name suggests, permanent coverage that you own until death. The two kinds are permanent insurance available are whole life or universal life. Both these are good for many life stages, but are typically for people with more disposable income. With whole life insurance, you pay premiums for a certain period of time or for life. With some policies, you also have the ability to build up a cash value. A universal life insurance policy office a combination of insurance coverage and tax advantaged investing. The policy includes a variety of investment accounts and the earnings are not taxed as long as the money stays in the policy. You can purchase a universal life policy that meets your protection needs today and, as your needs change in the future, you can add features, benefits and investment accounts of another product.

Living benefits

This type of insurance includes three types being critical illness, long-term care and disability. Critical illness insurance pays you money if you become critically ill. This type of insurance is a valuable investment at any life stage, after all, the cost of recovering from an illness can affect everyone. Long-term care insurance provides you with the services and support you need to maintain your day-to-day activities if a chronic illness or cognitive impairment keeps you from being able to take care of yourself. While this insurance is most likely used by people in later life stages, the planning for it should begin early. Disability insurance is important for anyone who relies on working income. Supplementing your group coverage with an individually owned disability insurance policy can provide you with benefits that address your unique needs.

Whether you are single or married, you just start a family or you’re sending your first child off to university, you will want to ensure you’re property protected. Make sure you sit down with your advisor to determine the right life insurance and living benefits insurance coverage for your specific needs. Anything can happen. That’s why it’s important to get all the coverage you need to protect your lifestyle, your family and everything you worked hard to achieve.

Remember to always consult your advisor before taking any action.

 

Stuart Kirk is a Retirement Planning Specialist with Hicks Financial Inc. The opinions expressed are those of the author and may not necessarily reflect those of Hicks Financial Inc.  For comments or questions Stuart can be reached at  stuart@ghicks.com or 250-954-0247.

Just Posted

Hannes Grosse, left, and Iris Steigemann, right, as they prepared for their 'Moments of Silence' exhibit. The father-daughter duo are showing at The Old School House Arts Centre in Qualicum Beach until June 26. (Submitted photo)
Cortes Island artists exhibit at Qualicum Beach’s TOSH in first father-daughter show

Both artists will be present at shows on Friday, June 25 and Saturday, June 26

The Lighthouse Country Marine Rescue Society will get more funding from the Regional District of Nanaimo. (Submitted Photo)
More PQB communities to fund Lighthouse Country Marine Rescue Society

RDN to introduce amendment to service bylaw contribution

A slide on best practices when reporting a suspected impaired driver that was presented to Parksville city council on June 7 by Margarita Bernard, a volunteer with MADD. The organization’s Report Impaired Drivers campaign involves the installation of informative signs within the City of Parksville. (Mandy Moraes photo)
MADD brings campaign to report impaired drivers to Parksville

Aim is to raise awareness that 911 should be called

Pam Bottomley (executive director), right and Sandy Hurley (president) of the Parksville Downtown Business Association visit the PQB News/VI Free Daily studio. (Peter McCully photo)
PQBeat: Downtown Parksville gears up for post-pandemic bounce back

Podcast: Hurley, Bottomley chat about what’s ahead for the PDBA

Maxwell Johnson is seen in Bella Bella, B.C., in an undated photo. The Indigenous man from British Columbia has filed complaints with the B.C. Human Rights Tribunal and the Canadian Human Rights Commission after he and his granddaughter were handcuffed when they tried to open a bank account. THE CANADIAN PRESS/HO-Heiltsuk Nation, Damien Gillis, *MANDATORY CREDIT*
VIDEO: Chiefs join human rights case of Indigenous man handcuffed by police in B.C. bank

Maxwell Johnson said he wants change, not just words, from Vancouver police

Two ambulances and a medevac helicopter are on scene at Taylor River Flats rest area on Highway 4 due to a serious motor vehicle incident. (PHOTO COURTESY MAGGIE BROWN)
Highway 4 reopens between Port Alberni and Tofino

Multi-vehicle accident temporarily closed highway in both directions

Tk’emlups te Secwepemc Chief Rosanne Casimir stands outside the former Kamloops Indian Residential School after speaking to reporters, in Kamloops, B.C., on Friday, June 4, 2021.THE CANADIAN PRESS/Darryl Dyck
Kamloops chief says more unmarked graves will be found across Canada

Chief Rosanne Casimir told a virtual news conference the nation expects to release a report at the end of June

A woman wears a vaccinated sticker after receiving a COVID-19 vaccine at a vaccination clinic run by Vancouver Coastal Health, in Richmond, B.C., Saturday, April 10, 2021. THE CANADIAN PRESS/Jonathan Hayward
B.C. ranks among highest in world in COVID-19 first-dose shots: health officials

More than 76% of eligible people have received their 1st shot

A screenshot of the First Peoples Cultural Councils First Peoples’ Map. (First Peoples Cultural Council)
Online resource blends B.C.-Alberta’s Indigenous languages, art and culture

Advisor says initiative supports the urgent need to preserve Indigenous languages

An artists conception of the new terminal building at the Pitt Meadows Regional Airport.
Air travel taking off in B.C., but lack of traffic controllers a sky-high concern

There will be demand for more air traffic controllers: Miller

Canadian Armed Forces experts are on their way to North Vancouver after a local homeowner expressed worry about a military artifact he recently purchased. (Twitter DNV Fire and Rescue)
Military called in to deal with antique ‘shell’ at North Vancouver home

‘The person somehow purchased a bombshell innocently believing it was an out-of-commission military artifact’

Amy Kobelt and Tony Cruz have set their wedding date for February, hoping that more COVID-19 restrictions will have lifted. (The Macleans)
B.C. couples ‘gambling’ on whether COVID rules will let them dance at their wedding

Amy Kobelt and Tony Cruz pushed back their wedding in hopes of being able to celebrate it without the constraints of COVID-19

Most Read