As we move forward with the journey of life, our financial needs, requirements and obligations keep on changing. For instance, your financial obligations tend to increase once you get married and continue to do so as you have kids and your family grows. Similarly, the importance of insurance varies at different stages of life. Proper planning of your insurance portfolio is necessary at each stage of life to ensure your dependents are protected financially.
Here is a list of different stages of life and their corresponding insurance plans that you must consider buying.
At this stage of life, you have limited responsibilities as you don't have any dependents. So the most important policy that you must invest in at this point of your life is the disability insurance. You need to protect yourself in the eventuality of you getting disabled during this phase and are rendered unable to earn. Another major insurance that you must consider buying at this stage is Medical Insurance as the cost of healthcare in case of hospitalization is very high.
This is the period where life insurance becomes a necessity. If an unforeseen mishap were to happen, you would want to ensure that your spouse remains financially secure. While you can choose the amount of coverage as per your requirements and financial conditions, make sure that it is enough to pay off any debts or loans that may be outstanding and provide a steady income for your family.
This is that stage of life where life insurance, disability insurance and critical illness insurance, all three are necessary for complete protection. You may also want to review your life coverage to ensure that it is adequate for covering the education of your children, their weddings, and for providing an overall larger income protection. Another major aspect that you must focus on during this stage of life is your retirement. In order to have an independent and stress-free retirement, it is the right time to invest in some retirement fund plans.
This is the time period when the major source of income is pensions and savings. Medical costs at this stage of life can be huge and therefore, investing in long-term care insurance is an option to be considered at this stage.
Whatever phase of life you might be going through; planning is the key to having a good life in all of them. So plan well, evaluate options in the market and ensure that you always stay covered and protected.