How your age affects your life insurance policy needs

Different stages in life bring with themselves different challenges, obstacles, problems and benefits. We look at the world with one pair of eyes when we are twenty and with a completely different pair when we are sixty. Our needs change for basically everything and life insurance policies are not an exception.

Young people have the benefit of – being young. Youth means less responsibility – less responsibility means low premium to pay, which opens opportunities for saving the money. It is very important to keep in mind that, as you grow old, your premium will rise, and your saving opportunities wonít be that good.

The first big change happens when you get married. Married life brings many joys, but it also brings a lot of new responsibilities and more expense – you are most likely to buy a new house, a new car or invest in some business in order to provide for your future family. Term life insurance comes up as a likely candidate for your policy of choice, since the monthly cost of this type of policy is usually low.

By the time you set up your home and make some big investments, it is to be expected that children will start to come. Also, as you age, your parents age too and soon there will be a need for you to take care of them in one way or another. In this stage of your life, you are still best off with term life insurance which enables you to receive periodical payments and renew it when necessary without too much effort from your part. One more policy worth giving a try at this stage is whole life security. This type of policy is good because it is portable and offers you mobility while you still need it – policy goes with you even if you change your job.

Whole life insurance policies are also great for people thinking about retirement, for the reason that they allow the customer to own the policy and carry it over into their retirement. However, the best idea at this stage of life is to purchase an endowment policy which is designed to provide you with a lump sum of money on its maturity, which can be in ten, fifteen, twenty years, on death and sometimes even on critical illness. The benefit of this type of policy is that it offers you an opportunity to receive a big sum of money around the time of your retirement, which is a good way of securing your final stage of life.

As you approach the end of your life you need to start asking yourself if anyone will suffer financially from your death. If this is not the case, then you donít have to think about life insurance anymore. However, if someone is dependent on you, you will have to consider other options, such as a term life or a universal policy which costs more but provides your family with income


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