Do you have the right insurance policy to suit your life stage?

Last updated on November 25th, 2021 at 03:19 pm by Bill Tsouvalas

Life insurance doesn’t have to be something that you consider when you are about to start a family or when your hair is starting to grey. You can find cover that is suitable to your financial situation and that is able to be adjusted for each life stage that you are at to ensure that you get adequate life cover. This is a basic guide on possible plans can provide adequate cover for each stage of your life.

1. For young workers who are just starting out

You might have your youth and less financial commitments at this stage, except for having to deal with a student loan debt or credit card debt. The general misconception is that young workers tend to think that they are invisible in the sense that nothing will happen to them, but life can get unpredictable. A policy that a young worker can start out with is an income protection policy which helps you secure 75% of your monthly income and pays you out if you are no longer able to work.

2. Young couples & newlyweds

When you are a young couple or newlyweds without children you want to be able to be there for your partner every step of the way. However, this can be a daunting process when it comes to protecting them financially whereby anything can happen in a blink of an eye. There are various life insurance policies you could consider such as; life insurance, Total and Permanent Disability insurance (TDP) for when you are terminally or critically injured and unable to work, and income protection which can help you and your partner financially when you are unable to work due to sickness and injury.

3. Young working parents

At this stage, most people have a steady career and either has a home or working their way towards owning a home. This could also be the time where you have just started a family and you would like to do everything to provide for and protect them. But this is also the time when a lot can happen. You could get injured at work or contract an illness like cancer that 1 in 4 females or 1 in 3 males in Australians suffer from. For a peace of mind and adequate cover you might want to consider:

  • Life insurance which will pay out a lump sum of money to help your loved ones continue the lifestyle that they know.
  • Income protection which will compensate for 75% of your salary while you on the road to recovery from an injury or sickness.
  • Trauma Insurance for when you have been diagnosed with illnesses such as cancer, heart attack or stroke.

4. Old working parents

This is the time when your children have grown and left the nest and you are looking towards building a solid retirement nest that sees you paying off your mortgage and having a sizeable saving tucked away. When it comes to life insurance policies it pays to slowly build your protection cover to a stage where you can comfortably afford most covers such as TDP, income protection, Life Insurance, and trauma cover. This will ensure that no matter the outcomes that you might face financially, you will be adequately covered to take care of them.

It pays to compare your options. Speaking to a financial advisor, an insurer or broker can also help you find your way to a policy that understands your needs and can provide adequate cover so that you and your loved ones will never be left financially exposed.