Life insurance cover for different life stages

Posted on: 28th March 2022 in Insurance

“Fun is like life insurance; the older you get, the more it costs” is a popular quote you might find when looking for life insurance cover on the internet. This is one of Kin Hubbard’s quotes, a famous cartoonist and journalist, and we couldn’t agree more with him. Life insurance cover does get more expensive as we grow older, so there is no reason to neglect to buy it.

Life insurance coverage should be part of your broader financial planning process as it could help you achieve your future goals in every stage of life. In our blog, you can read the 5 different life stages that bring about the need for taking out life insurance policies.

Should I have life insurance?

The answer is straightforward and does not need much thinking; yes. Taking out a life insurance policy is key to making sure that your loved ones are covered when something unfortunate happens to you. So, a life insurance plan ensures that the people you leave behind won’t experience any unexpected change in their lives.

Giving financial protection to your loved ones is a selfless act that many people neglect to plan. Ignoring this need could lead to your partner or your children having to deal with your financial obligations when you are no longer there to support them. Taking care of your financial commitments could become a significant burden, especially if you had been the family’s breadwinner.

Life insurance for different life stages

We have split an adult’s life into different stages to help you understand the value of having life insurance cover as you grow up. Sex does not play a role as both women and men should be insured to mitigate risks we pass from one stage in life to another. Life insurance products are numerous, and you can choose the best for your needs. However, since you might not know the right type of life insurance, we would recommend seeking advice from experienced and fully qualified advisers such as the ones you can contact when working with Holborn.

Insurance cover for young adults

The question that comes up is, “why should a young man or woman have life insurance?”. The truth is that when we are young we don’t think that anything wrong would happen to us, and the feeling of being invincible is strong.

Despite a young adult’s mindset, dangers are real even at that age. The way of life has changed in the last few years, and health problems increasingly affect the lives of younger people. Adding to that, young adults are prone to risky actions which could lead to hazardous situations.

You may want to consider life insurance even if no one else financially relies on you. If someone else financially relies on you, even in your 20s, you should think about it. When it comes to life insurance, because your premiums likely remain steady throughout the duration of your policy, it may be more prudent to purchase life insurance when you are younger rather than risk delaying the decision. This is because any future illnesses will increase the insurance cost or may prevent you from being eligible for coverage altogether.

Life insurance for married couples

Life cover becomes more critical when you tie the knot with your partner. You are no longer alone in life. Your life as a married couple means more obligations, financial or not when you are pushing to achieve your life goals. Partners should consider having sufficient cover in case things turn for the worse.

This is the time period during which a life insurance policy becomes necessary. If something unexpected were to happen, you would want to make certain that you didn’t jeopardise your partner’s wellbeing. While you can choose the amount of coverage that best suits your needs and financial situation, make sure that it is sufficient to pay off any debts or an outstanding loan that may be due as well as to provide a reliable source of income for your household.

Life insurance for married with children

Some say that you don’t really experience married life until children come into your life. Becoming a parent means that there are more family members that you should look after whilst the number of expenses increase exponentially. As the family budget gets stretched, financial security is of utmost importance. Any unfortunate event related to your health could cause significant problems for your family as family income could be slashed. Less money brings more uncertainty, especially if you have taken a loan to buy your home or any similar expensive purchase.

You may also want to review your life insurance to ensure that it is adequate for covering your children’s school fees, university education and providing overall more considerable income protection. Another important aspect to consider at this stage of life is retirement. It is now time to invest in some retirement plans in order to have an independent and stress-free retirement.

Insurance for the elderly

It is possible for older people who are approaching retirement or who have already retired to believe that they do not require insurance at this point in their lives. Most of your financial obligations, such as raising your children, covering mortgage payments or paying for your children’s university education, may be behind you.

Suppose you have no debt, enough savings for you and your partner to live comfortably for many years into the future, and money set aside to cover funeral expenses and other unexpected expenses. In that case, you may not need life insurance in your 60s or 70s. So, why do senior citizens require life insurance coverage? For many older persons, life insurance can serve as a critical safety net when their families are most in need of assistance.

Holborn Assets advice on life insurance

Life insurance is essential because it can help preserve a family’s lifestyle and cover its needs in the case of an unexpected event. A life insurance policy mitigates the financial consequences while serving as a long-term financial planning tool.

If you believe you lack the necessary knowledge to determine which solution is best for you, our qualified and experienced independent financial advisers at Holborn are here to assist you. Contact us today to secure the future of your loved ones.