Ageing gracefully: How to tailor your life insurance as you age
As we journey through life, our needs, priorities, and responsibilities evolve, and so should our insurance cover. Whether you're just starting out in your career, settling down with a family, or enjoying your golden years, having the right life insurance is crucial for protecting yourself and your loved ones. But with so many options available, how do you know which one suits you best at each stage of life? Let's explore how to tailor your life insurance as you age, ensuring you're always covered for whatever life throws your way.
Leading underlying causes of death in Australia, by age group, 2019–2021
Young, wild, and insured: Singles and couples, 20s
Hey, you vibrant souls in your 20s! Life's a rollercoaster, isn't it? Career hustle, social adventures, and maybe a bit of debt thrown in the mix. Sure, you might not have a mortgage or kiddos yet, but those student loans or that shiny new car aren't gonna pay themselves off. Life insurance is important in making sure your loved ones aren't stuck with your bills if something unexpected happens.
Income protection insurance can be a safety net for your bills if you're out of commission and paid until you return to work or for an agreed timeframe. And then there's total and permanent disability (TPD) insurance, ready to lend a hand if a serious injury or illness knocks you out of the workforce for good. Because hey, life's unpredictable, but your insurance cover doesn't have to be.
Adulting 101: First home-buyers, 30s
You're climbing the career ladder and maybe even dipping your toes into the property market. Yep, it's exciting stuff, but with great adulting comes great financial responsibility, right? Like let's say mortgage and living expenses.
Now, let's talk about the nitty-gritty. Income protection insurance steps up to bat if you're temporarily unable to work, ensuring those bills keep getting paid. Then there's total and permanent disability (TPD) insurance, there to catch you if a serious injury or illness puts you out of the workforce permanently. And last but not least, critical illness or trauma insurance has your back if you're hit with a major health setback. Because let's be real, adulting comes with its fair share of surprises.
Parenthood unplugged: New parents, 30s-40s
Alright, new parents in your 30s and 40s! You're in the thick of it now—juggling work, caring for your little ones, and trying to keep the household ship afloat. Phew, it's a lot, right? That's where life insurance comes in to ease the financial load.
Picture this: Your mini-me's are growing up fast, and they've got a laundry list of needs—from housing to education and everything in between. Your life insurance policy becomes your safety net, covering not just the mortgage but also those mid- to long-term living expenses. Plus, let's not forget about the future fund for their education—because hey, those uni fees aren't getting any cheaper.
Now, let's talk upgrades. With the kiddos in the picture, you might want to beef up your income protection and TPD cover. After all, with greater financial demands comes the need for extra backup. So, take a breather, sip that coffee (while it's still hot), and know that you've got your family's future secured.
Navigating your 50s and 60s, singles and couples
Now it's time for a life insurance reality check! You've weathered some storms, celebrated victories, and now it's all about making sure your insurance game is still on point for what's ahead.
Your mortgage might be a distant memory by now, and the kids might be off living their best lives. That means your life insurance might not need to cover as many bases as it once did. But hey, there are still grandkids to spoil, right?
Now, if you're putting in fewer hours at work or have a solid stash of savings, you might opt to dial down your income protection. But if you're flying solo, keeping that safety net intact could still be a smart move.
And let's talk health. We get it—getting older comes with its fair share of challenges. That's where total and permanent disability (TPD) and critical illness insurance step in. Because when it comes to your peace of mind and your family's financial security, you want to be ready for whatever comes your way.
Whether you're popping champagne for a new baby, cracking open the bubbly for that dream home, or toasting to that sweet promotion, your insurance should grow with you.
So, here's the plan: Have a chat with your financial adviser about what's new in your world. They'll help you tweak your insurance so it's tailor-made for your life, no matter what stage you're strutting through. When it comes to protecting the ones you love, you want a plan as unique as you are.