Tailoring life insurance as you age

Life insurance comes in many forms, and it’s important to consider tailoring your cover to suit your needs as you move from one life stage to the next. But how do you know which cover is right for you now?

Singles and couples, 20s

You’re young, active, and busy starting your career and enjoying life. You may not have kids or a mortgage yet, but you might have other debts like credit cards, university, or a car loan. Life insurance can help cover your debts so the costs aren’t left to your family or partner. Injuries and accidents can be a risk factor for your age group.

Income protection insurance can help cover your bills if you can’t work temporarily, while total and permanent disability (TPD) insurance can help with your care if you suffer a serious injury or illness and are unable to work again. Critical illness insurance (also called trauma) can help if you suffer from a specified serious illness.

First home-buyers, 30s

You’re forging ahead in your career and you may be considering or have bought your first place. For many people, this new level of financial responsibility is the trigger to invest in life insurance so if anything happens to you, it provides your beneficiary with a lump sum to help cover the mortgage and living expenses. Income protection (IP), TPD and critical illness insurance can help with costs if you’re unable to work temporarily (IP) or permanently (TPD), or if you’re diagnosed with a critical illness.

New parents, 30s-40s

This is the life stage where the financial juggle of work, caring responsibilities and housing is at its most intense, and your kids will need support for many years to come. Your life insurance policy may need to cover your mortgage, your family’s mid- or long-term living expenses, and you may want to include a lump sum for future needs, such as education. You may also want to increase your income protection and TPD cover to help with these greater financial demands.

Singles and couples, 50s-60s

This is a good time to revisit your policies to make sure they’re still meeting your current and future needs.

Your mortgage may be smaller, and you may be downsizing as children become independent, so your life insurance may not need to cover as many costs – but you may want to provide for your kids or grandkids. If you’re working less or have built up savings, you may decide to reduce your income protection – but for single people it may continue providing the back-up you need. For many people, health challenges increase in this life stage, so TPD and critical illness insurance could be beneficial.

Many life insurance policies may include benefits to let you increase your cover when you reach a major milestone, such as having a baby, buying a home or getting a promotion. Whatever life stage you’re in, I can help you with life insurance tailored to your individual circumstances and changing needs, so you can be confident you and your family are protected.

Any advice is general in nature only and has been prepared without considering your needs, objectives or financial situation. Before acting on it, you should consider its appropriateness for you, having regard to those factors. Before making any decision about whether to acquire a financial product, you should obtain the Product Disclosure Statement.