Life Insurance for Different Life Stages | Money Saving Advisors
Find suitable life insurance coverage for every stage of life—from young families to retirees.
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Life changes - and so should your cover
Life insurance isn't one-size-fits-all. Your family life - and financial obligations - might look very different at 55 than they did at 25. Whether you're just starting out, raising a family, or thinking about retirement, the right financial protection shouldn't be overlooked.
Early adulthood to starting a family
In the early days, it's all about setting foundations. You may not think you need life insurance yet - but it can be surprisingly useful even now.
- If you're single with no dependents
Life insurance might not feel urgent yet, but if you've got financial commitments (like student loans or a mortgage), having cover means your loved ones won't be left to deal with the costs. Plus, it's cheaper when you're young and healthy - you could lock in a low premium for the long-term. - If you're starting a family
Once kids come into the picture, life insurance becomes a must. You want to make sure your partner and children could manage if something happened to you. Your options include a joint life insurance policy or critical illness cover for sudden changes in your ability to earn.
Mid-life and later years
As your life evolves, so do your responsibilities - and that's just where your cover needs a second look.
- When children fly the nest
Once the kids are financially independent, you might not need as much cover - but it's still worth having something in place to help your partner, clear debts, or leave a legacy. You could also use a trust to make sure the money goes directly to them, tax-free. - Approaching retirement
Now it's time to put your feet up, but it's still a good idea to consider inheritance tax planning or funeral costs. For a modest monthly premium, whole-of-life insurance could help - it guarantees a payout whenever you die.
Summing up
Your life insurance should grow and change with your life. From single adulthood to raising a family, and into retirement, there's a type of cover that fits every financial future. The key is talking to advisors and reviewing your policy regularly to make sure it always reflects your priorities.
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Frequently Asked Questions
What's the best age to get life insurance?
The best time to get life insurance coverage is usually in your 20s or 30s, when premiums are lower and you're more likely to be in good health. Getting approved at this age can be simpler and you could lock in a cheaper rate for the whole term. Even if you don't have kids or a mortgage yet, you can still benefit by covering any debts or helping your family with medical bills or funeral costs.
Do I still need life insurance if I've paid off my mortgage?
Paying off your mortgage could reduce how much cover you need - and if no one depends on your income and your living expenses are covered, you may even be able to reduce or cancel your policy. But if people are still financially dependent on you, or you want to leave a financial gift behind, some level of cover could be useful. You may also want to leave a small lump sum to help with final expenses.
Can I increase or change my life cover later?
Yes, most policies can be reviewed and adjusted over time. Many insurers let you increase your cover without further medical checks after major life events like getting married, having children, or taking out a bigger mortgage. Alternatively, you can cancel an old policy and take out a new one if your needs change dramatically - just be aware that your age or health could affect the cost or availability of cover.
Should I get joint or individual cover with my partner?
Joint life insurance is often cheaper and pays out once, typically on the first partner's death. It's convenient for covering shared expenses like a mortgage. But having your own life cover can mean more flexibility and two potential payouts - one for each partner - which can be helpful if you want to leave separate amounts to children or other heirs. It's worth comparing both options to see what gives you the best long-term value and flexibility for your family's future.
What happens to my life insurance after retirement?
It depends on the type of cover. If you have term life insurance, your policy may end when you reach a certain age, like 65 or 70. If you outlive the policy, it simply expires with no payout. Permanent life insurance works differently - it lasts until you die, no matter when that is, and guarantees a payout. Many people nearing retirement consider switching to or adding a whole-of-life policy for funeral costs, or for that extra financial security for loved ones.
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