The life you lead at 25 years of age is very different to the life you lead aged 55. Your lifestyle changes over time – and so do your priorities. The things you hold dear when you are young are going to be very different once you become a grandparent.
Life insurance, for example, isn’t a big concern if you have no children and enough money saved to cover your final expenses.
However, if you are married, own a house and have children, it becomes much more important to safeguard the future for you, and those you love.
Unforeseen illness, accidents, or major property damage can affect your whole family’s quality of life, and your untimely death would be even more complicated.
The last thing you want is for those closest to you to suffer financially – especially when there is nothing you can do about it. There is, of course, something you can do right now. There are a number of different insurance policies to suit the different stages of your life.
Having the right insurance at different times of life means you can prepare for the unexpected.
Here are some of the key milestones that take place throughout your life – and some of the insurance products to match.
Young free and single
Passing your driving test and owning a car means really does give you freedom to explore... or at least, do the shopping and visit friends without relying on parents and public transport! Car insurance is a legal requirement for all drivers, of all ages. Find the right policies for new drivers with pink licences.
Many people choose to go travelling while they are young and have few responsibilities to tie them down. Travel insurance is an essential, whether it’s a weekend break, a short holiday, or you’re travelling the world on the trip of a lifetime.
You’ve just tied the knot and you’re planning your life ahead with your partner. One of these plans might be buying a house together. Insuring your home is a key part of the house-buying process, as mortgage lenders require buildings insurance. Combining buildings and contents insurance can save you money and sleepless nights, knowing your home and everything inside it is covered.
Mortgage life insurance is specifically designed to protect a repayment mortgage. If you were to die, or be diagnosed with a critical illness (if this cover is included) while the policy was in force, it would pay out a capital sum that will be enough to repay the outstanding balance of the mortgage, avoiding unnecessary financial hardship for your partner during a traumatic time.
Before taking the plunge and starting a family, many people ease themselves into the idea with a pet. Cats and dogs soon become an integral part of the household and pet insurance allows you to protect Fido and Felix if they become ill.
Married with kids
Once children come along, your life and priorities understandably change forever. As your family grows, the size of your house (and unfortunately mortgage) may well increase. Always remember to update your home insurance whenever you move house.
If you don’t already have life insurance at this stage, you should absolutely take out a policy now. If you already have cover, then make sure you review it to check it is adequate and that all relevant beneficiaries are named.
If you drive, you may have clocked up a hefty no claims bonus by now. If this is the case, you might want to protect that discount when you renew your car insurance.
The children have flown the nest or gone to university, and your mortgage is nearing its end (or even finished). At this stage of life, you’ve got back some personal and financial freedom so your insurance needs will decrease. If you have enough savings you might even think about partially self-insuring.
As a retiree, your income is now a combination of your pension and savings; you will have life insurance in place to cover end-of-life costs or to leave money to charity. You may want to consider switching to permanent life insurance to act as an investment vehicle.
Of course, now you have some free time on your hands once again, you may choose to do a spot of travelling to those parts of the world on your bucket list. Make sure you have the right travel insurance, and enjoy!
Whatever your stage of life, you can make sure you always have the right insurance cover at the right time with the help of Computerquote Insurance.