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Posted on: February 5, 2014 at 2:07 PM
Categorized in: Consumer Education, Services

Life Stages Trigger New Insurance Needs

Whether you are in early adulthood or retirement, it is important to provide continuous financial protection for you and your family.

If you think insurance dominates dialogue in the United States, consider insurance-obsessed Japan. With the world’s 10th-largest population, Japan is second only to the U.S. in individual policy sales.

To give an idea of the insurance market in Japan, consider the popularity of hole-in-one insurance. For about 2,000 yen ($20) per year, it protects golfers who make an “albatross” (the Japanese term for a hole-in-one) from huge celebratory costs, since custom dictates that the lucky golfer throws a lavish party for his companions.

Fortunately, in the United States, we typically only need insurance for the more routine parts of life, as detailed below.

Young Adults

Those newly out of high school, college or the military and on their own should at least have health, disability, renter’s (or homeowner’s) and auto insurance coverage. In fact, all but three states (Florida, New Hampshire and Wisconsin) require auto liability coverage.

Health and disability coverage are particularly important now, since your health and ability to earn an income at this age are paramount. You’re fortunate if your employer provides these policies. If not, consider buying individuals policies for health care and disability coverage. If you’re relatively healthy, the costs should be modest.

Renter’s (or homeowner’s) insurance will protect you if your personal property is destroyed, damaged or stolen. Even if your property assets seem minimal, it’s smart protection.

Midlife Working Years

Added responsibilities – marriage and children especially – mean ensuring that those you care for are protected. Continue not only with the insurance policies of your youth, but also consider adding life and liability coverage.

Life insurance is designed to provide income for those whose financial security is tied to you – your spouse, children or other dependent relatives. Life insurance comes in many types; generally, term insurance enables you to purchase more coverage for each premium dollar. What’s most important is calculating the exact amount of coverage you’ll need.

Liability insurance (also called umbrella coverage) protects you beyond the limits of your homeowner’s and automobile liability coverage.

Empty Nesters and Retired

At this stage, you’ll want to consider long-term care insurance (designed to pay for custodial care, if you someday need it), health care and prescription coverage, and potentially Medigap coverage (Medicare supplemental insurance).

The costs and terms of these policies vary widely, so it pays to shop around. Consult with a trusted insurance advisor who can help you properly assess your needs.

A Lifetime of Coverage

No matter the type of insurance you buy, think of it as a “security blanket” for your life, providing you with continuous financial protection. With luck, you’ll rarely need to collect on your insurance, but you’ll rest better knowing it’s there. Contact an insurance professional at MIDFLORIDA Insurance Services at (888) 861-6160 or request a quote online.

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