Changing Needs

Out on your own

It's an exciting time in everyone's life when they finish their education and embark on their own. If this describes you, maybe insurance is the last thing on your mind—but it shouldn't be. If your employer offers health insurance, this will be a good way to cover your costs associated with medical expenses. While you're just beginning your career, you may want to consider protecting your paycheck with disability insurance in the event of an unforeseen accident or sickness. You may also consider life insurance while young to get good rates and be prepared for the future. If you are extremely active, you may want to learn more about accident insurance.

Just married

Congratulations! A key part of a couple's new life together is planning for the future, including plans for a family and for your future retirement. You will need to determine who will carry the health insurance to take care of expenses associated with routine medical care. This is also a good time to think about how you would pay your monthly bills if either of you could not work for a period of time because of an accident or sickness. You may also want to think about offsetting medical costs should either of you be hospitalized.

Buying a home

Buying a home is certainly a big commitment, and it is a good time to review your disability insurance coverage to ensure you can maintain your current lifestyle in case of an accident or sickness. You may also want to review your life insurance coverage to ensure final expenses and commitments can be covered.

Starting a family

Congratulations! Starting a family or blending a family can create short- and long-term insurance needs. Protecting your paycheck becomes increasingly important, as well as ensuring your loved ones are taken care of in the event of an untimely death. This is also a good time to ensure your entire family is financially protected in the event of a serious medical condition or an accident.

Divorce/separation

This is a difficult time in your life. It is important to review all of your insurance coverage because you may have relied on your spouse's benefits and now have gaps in coverage.

Planning for retirement

You can never start too early planning for your retirement. Be aware of your company match policy and learn how to maximize your 401(k). The money you set aside grows tax-free!

If college is in the future for the kids, look into 529 plans as soon as possible. In some states, the money you place into an account will grow tax-free and can be withdrawn tax-free when used for tuition.

Ask an expert. If your company offers a 401(k) option, then it most likely offers access to financial counselors. These people can help you make better financial decisions with your goals in sight.

Diversify your investments depending on your life stage. Take risks only when appropriate for your financial picture. If you don't know how much you should invest, ask an expert.

Families also use life insurance to save for retirement and future needs.