Life Insurance for the 4 Stages of Life

You can classify life based on multiple factors. But as an adult, there are four milestones in the typical adult life: 1) making your way through life as a fresh-faced young adult, 2) finding the love of your life and getting married, 3) having kids and figuring out how to plan for your family’s future, and 4) growing old together and thinking about financially securing your loved ones. Each of these milestones seem daunting, but having the right life insurance can help you sail through each of them with the comfort of having the financial aspect of them under control.

The most common types of life insurance are term and whole life insurance. Based on where you are at in life, you’ll need to have the right type of insurance to meet your personal needs at every stage. If you’re single and nailing life as a young adult, your needs and financial situation will differ from someone who has children or is about to start a family. While there may be a host of factors to consider, this list should cover the basics and put you on the right path.

Best Life Insurance for Young Singles: Term Life Insurance

As a young adult finding your way in life, the last thing on your mind is life insurance. You likely have no one depending on you financials, so death benefits seem stupid - your dog can’t do anything with your money, after all. So if you die tomorrow, no one’s going to need your money, right? Wrong. Death benefits can be used to cover funeral expenses, student debt, and any other loans that mum and dad might have been taken out for you.

Term life policies can help cover costs like these for a period of time that you choose. You can name exactly who will receive the benefits, whether it’s Rover or your girlfriend/boyfriend, or your parents. The best way to get your hands on a term life policy is through your employer, if they offer life insurance benefits.

Best Life Insurance for New Families: Whole Life Insurance

Taking care of a family and trying to plan for their future is quite a task. That’s where whole life policies come in. While more expensive than term life insurance, whole life insurance also accumulates a cash value apart from the death benefits, which can be used your whole life, as the name implies. Some insurance providers allow you to continue growing your cash value even after you finish making all your payments.

Best Life Insurance for Securing Children’s Future: Whole Life Insurance

If you just became a parent, child insurance policies can let your kid(s) tap into those benefits when they grow up. Although child insurance policies typically are meant to cover children if they die, these benefits can be used by them during their lifetime too to pay for college or buy their first home!

No one wants to think about their child dying, but taking out a policy on your child has other advantages in that it can be used as an investment in your child’s future, to help pay for their education, make down payments on their first condo, or cover financial emergencies. Plus, if tragedy strikes and the unthinkable does happen to your child, at least you won’t be left dealing with the expenses all on your own.

Best Life Insurance for Older Adults to Protect Loved Ones: Guaranteed Issue Life Insurance

So your children have left the next and your bills have reduced - a lot. So there’s no need to pay for another expensive policy, correct? True, but a small policy to help your family take care of your expenses down the line may be beneficial to them.

But you might be concerned that old age or poor health will keep you from getting coverage. In that case, look for a “guaranteed issue” life insurance policy which doesn’t require a medical exam. So, you won’t be denied from this policy because of your age or health condition. Only problem is that it’s got expensive premiums which can be a turn off for most people until absolutely required.

There are other policies to consider such as variable life insurance, universal life insurance, and variable universal life insurance, all of which provide cash value benefits apart from the death benefits. With all these options out there, it’s probably safer to chat with an advisor before committing to either one. Online insurance tools like iLifeInsurance can also help you by scouring through all of the life insurance options available in the market, comparing their quotes, and helping you decide on one - all without sales pitches or pressure.

At the end of the day, the most important thing is that you choose a plan that makes you feel financially secure.