Given that September is National Life Insurance Month, we've compiled highlights of some of the stages of life and insurance needs that may coincide. While most people don’t want to talk about insurance, around our office, we face the hard conversations together (estate planning, divorce, life transitions). The hard truth is that more people need insurance or need more insurance than they have, but put off addressing it. We would encourage you to take a few minutes this month to check in on your insurance policies and needs. And remember, we’re here to help you.
20’s-30’s
Be sure to look at employer benefits for disability insurance (short and long-term) as well as life insurance. Keep in mind, this is the age and stage where purchasing individual insurance is the least costly to lock in longer-term policies that may be convertible in later years. Don’t forget if you are renting, to consider rental insurance.
Did you know that according to the “Disability and Death Probability Tables” published in 2024 by the SSA , for someone age 20, their likelihood of becoming disabled between 20 and normal retirement age is 23% and their probability of dying during the same time period is 13%. So while life insurance is the first thing most people think of, disability insurance really needs to be addressed first.
30’s-40’s
If you haven’t already secured personal policies to cover what your employer doesn’t, or to be able to take with you wherever your career leads, now is the time! It is also important to consider umbrella policies as well as the limits on your insurance for your home and cars.
Did you know that some carriers offer the option to purchase retirement disability insurance as an add-on to traditional policies? It will save for your retirement while you are disabled since most disability policies stop at retirement age.
40’s-50’s
If you started your own business, ensuring there is sufficient disability coverage to cover operating expenses short-term or loan coverage in addition to personal insurance is a good idea to consider. Don’t forget to regularly review your coverage for homeowners and auto insurance on a regular basis.
50’s-60’s
If you want to purchase long-term care insurance, ideally this is something to address by now. Each year you wait, the cost increases, so whether you choose to have insurance or not, you should know your options. You may also want to look at insuring your income through the use of an annuity. Like all strategies, it may or may not be right for your unique situation, but asking questions never hurts.
A lot of clients are considering identity theft insurance these days. Here are some resources from Janus Henderson related to fraud and elder abuse. (insert link: https://www.olderadultnestegg.com/for-older-adults/help-for-older-adults-at-risk-of-financial-exploitation/)
60’s-70’s
During this decade, Medicare insurance is the hot topic. We recommend getting a qualified agent to assist with understanding your options to help wade through all the marketing materials you’ll likely see. As financial planners, we can also help review the impact of the various costs on your budget.
70’s-90’s
A lot of clients will purchase an insurance policy through a funeral home to pre-pay your final expenses. Not a fun topic, but if you look at the cost of inflation, quite often this results in a significant savings over a normal life expectancy. It is also your last chance to consider long-term care.
Older life insurance policies may have increasing cash value or premiums that are increasing. Be sure to review those policies from time to time with your agent or financial planner. Your long-term care insurance premiums may also increase, and necessitate consideration of changes of benefits to reduce premium. Or, you may need to go on claim during this phase of life. Medicare does not pay for long-term care. However, they do have a list of what is and isn’t covered, as well as resources HERE.
Janus Henderson has also compiled a list of resources for caregivers HERE.
As always, please contact our offices with any questions at all, regarding insurance, financial planning, investment strategies and your financial goals. (423) 648-2733
- NorthShore Financial Strategies, Chattanooga Financial Advisors