By Bill Taber
We all understand the importance of insurance, from homeowner and auto to health and life coverage. But did you know that the amount of coverage you need changes as you go through different stages of life? Here’s a guide to help you navigate your insurance choices and so you can have confidence you’re protected against the risks and uncertainties life can throw your way.
College Students
Many students are still eligible for health and auto insurance through their parents’ plans and they don’t typically have dependents or property. This may lead you to think that students don’t need to be part of the insurance conversation, but there is one type of policy that could make a difference to your finances: a hospitalization policy. Hospitalization policies cover unexpected medical costs students accrue from surgery or hospitalization, essentially shielding them and their parents from going into debt to pay for medical expenses.
Young, Single, Working, and On Your Own
The most important types of insurance that those in this stage of life should consider include health, renters, and auto insurance. Most likely your employer will provide health insurance for you, but if they don’t, it is important to research your options to find the best rates available. Renters insurance is very affordable and often required by landlords. It helps protect you in the case of stolen or destroyed property (think jewelry, laptops, or other big-ticket items). And when it comes to auto insurance, it is important to shop around and find the most competitive coverage.
Newly Married Homeowners
As a newly married couple with a house, it’s time to turn your attention to life, homeowners, and liability insurance. The last thing you want to do is get married, buy a new home with your spouse, and unexpectedly pass away. In this extreme case, you would be leaving your spouse with the responsibility for paying off the entire mortgage with one income. If you have life insurance for yourself, you could alleviate such a risk.
Speaking of your home, homeowner insurance policies vary in what they cover, so it is important to make sure you understand the terms. Consider purchasing a “Replacement Cost” policy that pays for the full cost of rebuilding your home and for replacing your possessions versus a policy that just pays for your home’s market value.
Finally, you should also consider liability insurance, also known as umbrella coverage, which essentially protects you beyond what homeowners and auto insurance covers. Because your net worth is growing, this type of insurance is important.
Proud Parents
The most critical type of insurance to have at this stage is health insurance for your children. In the bustle of adding a child to your family, it’s easy to forget about paperwork and logistical details, so make a note to add your new little one to your existing medical policy within a month of their birth so you don’t run into any coverage issues.
If you don’t already have a life insurance policy, now is the time to get one. If you do have a policy, be sure to boost your coverage to include the future cost of raising a child, college costs, and maybe even coverage for a stay-at-home parent. Either way, make sure that your children and spouse are taken care of should anything happen to you.
Empty Nesters and Pre-Retirees
This is a pivotal life stage (by age 50) where making decisions for the future comes into play. You may still need many of the above-mentioned policies, but you should also look into long-term care insurance. This type of insurance covers the future costs of long-term care, which may include in-home care or the costs of living at a nursing home to assist with the basic personal tasks of everyday life. There could come a time when you cannot take care of yourself independently, and you don’t want to drain your savings to get the care you need. There are different types of policies, including traditional LTC policies or hybrid LTC policies, so do some research to find the best choice for your situation.
Retirees
Once you retire, your insurance priorities change. For the most part, you will not need to protect your ability to earn income since you are no longer working. However, as you get older, insurance can significantly lessen the impact of medical expenses and long-term care costs.
When you officially retire and lose your employee healthcare coverage, you either have to reassess or obtain new coverage on the following: health insurance, Medigap, Medicare prescription drug plans, and long-term care insurance. If you retire early, you may need an additional short-term health insurance policy since Medicare does not kick in until you reach age 65. It is also important to consider Medigap policies since Medicare will most likely not cover all of your medical expense needs. Also, because Medicare Part A and Part B do not cover most prescription drugs, you need to shop around for Medicare Prescription Drug Plans (Part D). Finally, as discussed in an earlier stage, it is very important to explore having LTC insurance. The longer you wait beyond age 50, the more expensive this type of coverage will be.
And remember to take the time to review all of your in-force policies to make sure you aren’t over-insured, and update beneficiaries of your life insurance policy as needed.
Here to Support Through Every Stage
At TABER Asset Management, we know that navigating insurance options can feel overwhelming. As life evolves, so do your insurance needs, and our team is here to guide you towards finding the right coverage for your unique situation.
We take the time to truly understand our clients—their goals, interests, and risk tolerance—so we can build personalized, long-term strategies. As a fiduciary firm, we are legally and ethically committed to putting your best interests first, providing tailored guidance.
If you’d like to explore how we can assist you, get started today by scheduling a 15-minute intro phone call online or reaching out to us at 515-557-1860 or invest@taberasset.com. We look forward to helping you set up the protection you need at every stage of life.
About Bill
Bill Taber is President and Founder of TABER Asset Management, an independent, fiduciary wealth management firm, in Des Moines, Iowa, that strives to do one thing well: manage their clients’ money by creating wealth, building wealth, growing income, and preserving capital so they can experience financial freedom. With more than four decades of experience, Bill is dedicated to building relationships with his clients and their families and walking alongside them as they navigate financial decisions. His favorite days are the ones when he gets to witness the joy and relief on his clients’ faces when they realize they can pursue their dreams and live their ideal lifestyles. Bill is known for going the extra mile, getting things done with integrity, and working with a stewardship mentality.
Bill graduated from the University of Iowa with a bachelor’s degree in business administration and fell in love with the profession when he got to help one of his first clients—his father—turn his lifetime of hard work into a dream retirement. He got his start in the industry as a corporate services representative for Bankers Trust Company and spent decades working as Assistant Vice President of E.F. Hutton & Co. and First Vice President of Principal Financial Securities. He is also a graduate of the E-Myth Worldwide Mastery Business Development Program and is Series 65 registered.
In his spare time, Bill enjoys giving back to his community and spending time with his family. His hobbies include traveling, gardening, reading, and practicing yoga, Pilates, and meditation. He also loves the simple joys of listening to music, going for walks or bike rides, and being in nature. To learn more about Bill, connect with him on LinkedIn.
Komentarze