Most people agree that life insurance is important, but it’s one of those topics that often gets pushed aside. Many think it’s something only older adults or parents with young children need. In reality, life insurance is a form of financial protection that can make sense at nearly every stage of life.
The amount and type of coverage you need will change as your responsibilities grow. Early in life, you may only need a small policy to cover debts or final expenses. Later, you might need more coverage to protect a spouse, children, or your home. As you approach retirement, you may scale back again.
Here’s how to think about life insurance through each phase of your life - and how the credit union can help you find the right coverage for your needs.
Starting Out: Life Insurance for Young Adults
If you’re just beginning your career, life insurance might not feel like a top priority. But there are good reasons to consider a policy early.
When you’re young and healthy, premiums are at their lowest. Locking in a policy now can secure a rate that stays with you, even as you age or your health changes. Even a modest policy can make a significant difference. It can cover outstanding student loans or other debts, help with funeral expenses, and provide some financial support for loved ones who might rely on you.
At this stage, a term life policy is often the best fit. It’s affordable, straightforward, and can be adjusted later as your responsibilities increase.
Building Your Career: Growing Your Coverage
As your income rises and your financial picture becomes more complex, it’s a good time to review your coverage. Many members choose to increase their protection and consider the benefits of term life versus whole life insurance.
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Term life insurance provides coverage for a specified period, typically at a lower cost. It’s designed to cover major financial responsibilities, such as a mortgage or dependent care.
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Whole life insurance lasts for your entire lifetime and builds cash value that you can borrow against or use later. While it may cost more, it can also become part of your long-term financial strategy.
If you have life insurance through your employer, remember that those benefits often end if you change jobs. Having a personal policy ensures continuous protection no matter where your career takes you.
Getting Married: Protecting Your Partner
Marriage is one of life’s biggest milestones - and it changes your financial priorities. Life insurance becomes a way to protect your partner’s future and preserve your shared goals.
Start by reviewing your beneficiary designations to ensure your spouse is listed as your primary beneficiary. If they don’t already have their own policy, now may be the time for both of you to get coverage. You might also want to increase your coverage to ensure there’s enough to cover outstanding debts, mortgage payments, and living expenses if something unexpected happens.
The goal is simple: peace of mind for both of you. With the right coverage in place, your spouse won’t be left struggling with bills or financial uncertainty during an already difficult time.
Raising a Family: Providing for the Future
When children arrive, life insurance becomes essential. It’s no longer about protecting just one person - it’s about safeguarding your family’s stability and future.
Your policy should provide enough coverage for your spouse or partner to manage household expenses, childcare costs, and your home’s mortgage. It can also help fund your children’s education and replace your income for several years while your family adjusts.
For many families, term life insurance provides the most value at this stage. It offers high coverage for an affordable cost, ensuring that your loved ones are financially protected no matter what life brings. Some parents also set up a trust to ensure funds are used specifically for their children’s long-term care or education.
Other Major Life Events: Updating Your Policy
Life is full of change, and it’s important to review your policy whenever a significant event occurs. These moments can affect both who you want to protect and the amount of coverage you need.
For example, divorce may mean it’s time to remove an ex-spouse as beneficiary and instead name your children or another family member. In some cases, parents may place funds in a trust to ensure they’re managed responsibly on behalf of their children.
On the other hand, some milestones may allow you to reduce your coverage. Paying off your mortgage or reaching financial independence might mean you no longer need the same level of protection you once did. A quick policy review ensures your coverage matches your life today - not the life you had years ago.
The key is to keep your policy aligned with your goals. Whenever life changes, your coverage should change too.
Nearing Retirement: Simplifying Your Coverage
By the time you reach retirement, your children may be financially independent, and many of your major debts could be paid off. At this stage, you can often simplify your coverage to match your lifestyle.
Many retirees keep a smaller policy to cover final expenses, medical bills, or outstanding debts. Others maintain a modest amount of coverage to leave a financial gift or legacy for their loved ones. Even a small policy can relieve stress for family members later in life.
Life insurance during retirement is about comfort and closure - knowing that everything is taken care of and that your family won’t face financial hardship during an already emotional time.
We’re Here to Help!
Life insurance isn’t just for one stage of life - it’s a tool that evolves alongside your needs. Whether you’re starting your career, raising a family, or planning for retirement, the right policy can give you lasting peace of mind. The Credit Union’s financial advisor, Aaron Welch, can help you review your current coverage, compare policy types, and find the right fit for your goals and budget. Contact Aaron at 667-308-2724 or Awelch@moneyconcepts.com
If you want to learn more about our Trustage life insurance products please click here.