What insurance policies do you need?
As we reach certain life milestones, it can be easy to assume that we can save a few dollars by eliminating certain insurance policies that are no longer needed. This is rarely the case.
What people are most likely to believe they do not need certain insurance policies? Let’s take a look.
People without dependents
When it comes to certain insurance policies, those holding them do so not for themselves, but for their dependents. This is especially true of life insurance policies.
However, life insurance policies do more than just provide for dependents; they can cover debt and funeral expenses, and even allow you to provide for charitable causes. As for other policies, if you need them with dependents, you need them without.
Those who are retired
In general, the same policies you need as a working adult will be needed after retirement. The only exception is long-term disability insurance.
These policies are designed to replace your income in the event of a debilitating incident. If you have no income, there is nothing to replace and no need for such a policy. All other policies should continue until you are no longer eligible for them, as is the case with certain types of life insurance.
Those who stay at home
It is not uncommon for stay-at-home spouses to think that the only insurance policy they need is health insurance, which is often provided through their partner’s job. Policies meant to replace wages, such as life insurance and disability insurance are rarely considered.
Life insurance, as noted above, can cover debt and funeral expenses. In the event of a long-term disability, a paid worker may be required to handle the daily chores being performed by the stay-at-home spouse. Disability insurance can cover such an expense and is especially important if childcare duties are on the table.
To learn more about the insurance policies that you and your family should have in place, speak with an experienced insurance broker.
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