Insurance essentials for each stage of life

By Brian Mauck

Just as our investment strategies change as we get older, so should our approach to insurance. Regardless of our stage of life, insurance should be flexible — changing with us as we start and end chapters in our lives.

As we move through the different stages of life, our insurance needs to change, too. That’s why it’s important to review and adjust our policies as time goes on.

Insurance during college and early adulthood

For those heading to college, trade school, the military or right into the workforce, this may be the first time you’ll be independent — slowly transitioning away from your parents. Throughout your early adulthood, having health insurance is crucial. Whether it’s a university-provided plan, a parent’s policy or one you get on your own, health insurance can help provide peace of mind, reducing stress and anxiety about potential medical costs and access to care.

If you're living in a rental, renters’ insurance is also a must-have. This coverage protects your things against theft, damage or loss, whether due to fire, vandalism or other covered incidents. It also includes liability protection, which can be vital if someone is injured in your space.

Although it’s not always fun, adulthood means taking charge of your insurance choices. So be sure to stay on top of things as your responsibilities grow!

Entering the workforce

When you get your first full-time job, you’ll want to carefully review any employer-sponsored insurance coverage options. Many employers offer a range of insurance benefits, including health, dental, vision, life and disability coverage. Look at things such as coverage limits, premiums, deductibles and network providers to see which plan aligns best with your needs and finances for the upcoming year.

If you’re an independent contractor, entrepreneur or small business owner, you’ll have to find insurance coverage on your own, but the good news is you have options. You can explore coverage through your state or federal marketplace, a local association, or work with a licensed insurance agent to find an option that fits your specific needs.

Whether you get insurance through your employer or on your own, it’s important to take an active role in managing your insurance needs. Every year, during open enrollment, you should take the time to evaluate how well your current coverage has worked, compare new plans that have come on the market and make any changes if needed.

Don’t forget about disability insurance here as well, aka income protection. Disability insurance is an essential safeguard to consider, especially when you're young and starting your career. It provides a financial safety net in case illness or injury prevents you from working and earning an income. By securing coverage early, you lock in lower premiums while helping protect your future earnings.

Starting a family

When you’re starting a family, ensuring your dependents have the coverage they need becomes a top priority. Health insurance, accident insurance and life insurance are key tools that can help protect your family as it grows.

Health insurance helps cover medical expenses, from routine checkups to unexpected health issues, helping ensure your family members get the care they need. Accident insurance provides an additional layer of protection, helping cover costs related to accidental injuries, which can be especially valuable with young children in the house. Life insurance is another critical consideration, as it helps ensure your family is financially supported if anything happens to you.

The best part – you don’t have to wait for the annual open enrollment period to make these changes in coverage. Qualifying life events, such as getting married or having a child, allow you to adjust or obtain new coverage, but it's important to act quickly. Typically, you have a limited window — often 30 to 60 days — to secure or modify coverage under these circumstances.

Recently become a homeowner? Comprehensive homeowners’ insurance is essential to help protect your property and things against unforeseen events such as fire, theft or natural disasters. Review your policy on a regular basis, and at least annually, to ensure it covers replacement costs and consider additional coverage for valuables and liability protection.

Midlife adjustments to insurance

As you reach your middle years, it becomes even more important to review and adjust your coverage as needed. It’s also important to make updates as life events happen. For example, after a divorce, you may want to update your beneficiary.

If you’ve purchased any new property or renovated your home, your homeowner's insurance may also need to be adjusted. Consider additional coverage options for high-value items or liability protection, especially as your assets grow.

Life insurance is important here, helping to provide financial protection for loved ones and being prepared to cover final expenses. See whether your current coverage still works for you and make adjustments based on your finances, your personal needs and your estate planning goals.

Of course, as you age, so will your parents. That’s why it’s important to encourage them to explore their Medicare options early or investigate supplemental insurance plans. Consider long-term care insurance or other options as well to prepare for potential future needs, such as nursing home care or in-home assistance.

Preretirement and retirement

It’s finally here — retirement is on the horizon! That means it’s time to plan for long-term care (even if it feels too early) so you can find premiums that fit your budget and help ensure coverage meets your future needs.

If you've been covered under employer group plans throughout your career, understanding their convertibility options is crucial. Some group plans may be portable, allowing you to continue coverage after retirement (although typically at a higher cost). Others may end altogether, meaning you need to find a new plan.

Medicare is also something to keep an eye on, as different options will cover different things. Check out each option and make sure you won’t pay too much out of pocket.

Golden years and beyond

Later in life, an estate plan takes center stage. A comprehensive plan will give you the confidence of knowing your wishes will be carried out after you’re gone. Review and update your will, establish trusts, designate power of attorney for health care and finances, and confirm beneficiaries are on your insurance policies and retirement accounts. Carefully organize your documents and make sure a loved one knows where to find everything.

Proper insurance planning throughout your life means you’ve taken care of your loved ones, making it easier on them when you’re gone. Consider purchasing a pre-need funeral insurance policy or setting aside money specifically for these costs. Then, be sure to chat about your preferences with family members so they know what to expect.

Regularly reviewing your insurance policies with an experienced agent is the best way to prepare for every stage of life. They’ll help you find any gaps in coverage and see if there are ways you can save money. By being proactive, you not only set yourself up for success but gain confidence, knowing you’re better prepared for any curveballs life throws your way!

Brian Mauck is director of revenue and product development at Woligo. Contact him at [email protected].