Managing Life Changes Through Insurance

Accidents, illnesses and mishaps cannot be totally ruled out even if you take the best of preventions. They can occur in all stages of life and unless you seek coverage under suitable insurance policies, you run the risk of ruining yourself and your dependents financially.

These days you have access to adequate insurances to protect self and family (in case you have any) against probable financial risks in different stages of life. All you need to do is buy policies judiciously and then you will face no problems in managing life changes.

Let us start with the insurance requirements of a person who has just started his/her independent adult life - it is a stage when you will no longer enjoy coverage under your parents' policy. Select policies will better enable you manage life's changes:

Health Insurance will be your primary requirement. If your employer sponsors your health policy, fine; however, if your job does not offer you any medical benefits (or you are jobless and hence do not have any health coverage) you should look for a temporary short-term (say, 1-12 months) health policy. Else, go for a high-deductible permanent major medical policy. If you are between jobs, you can continue the group coverage provided by your previous employer for the next 18 months under the federal program COBRA. Each policy requires you to qualify medically. You will not be covered for pre-existing conditions.

The other must-have policy for this stage of your life is the Disability Insurance policy. Disability insurance, also known as income-replacement insurance, replaces a percentage (typically around 60 to 80 percent) of your current monthly income should you be unable to continue with your occupation on account of an accident or illness. Employer sponsored disability plans provide coverage for 6 to 12 months. State-sponsored policies provide ample compensation, but only if your job is responsible for the disability. The best way to manage this adverse change in life is to supplement the employer's policy with a private policy.

With no dependents (spouse, children or dependent parents), Life Insurance may not be very important, but buying a LI policy at this stage ensures you relatively low premiums.

You will need Auto Insurance if you own a vehicle.

Renter's policy is the other policy that young adults can opt for to protect their valuables: clothes, jewelry and other personal property.

Once you get married, you enter a new phase of life. Your priorities change and so changes in the insurance policies / coverages you had selected in your single status become inevitable. Now that another life is financially tied to you, Life Insurance becomes all the more important. It is quite likely that you will be planning a family a year or two after getting married, hence purchase of a house will feature topmost in your priorities. Once you buy a house, purchasing a Homeowner's Insurance policy will be must. You will also need to buy extra coverage for the homeowner's policy exclusions.

As regards other changes, you may find it economical to have a joint Medical / Health Insurance policy. Similarly, insuring your vehicles with a single carrier will be reasonable. Prudence lies in discontinuing the disability coverage of the spouse should he/she opt not to work.

Another important policy for this stage of life is the Umbrella policy or Liability Insurance. The policy provides additional protection to Insurance-holders by promising coverage in excess to the limit offered by basic Personal Insurance policies.

The birth of a child brings fulfillment to your family life but it also requires you to shoulder larger responsibilities. And indeed, insurance policies have made managing life changes like these very easy. So, have your baby's name included in your Health Policy (of course, within first 30 days). You will also need to increase Life Insurance coverage to take care of your future expenses, chiefly for the child's upbringing.

As your children grow-up and start a life on their own, you enter another phase of your life. Arriving at this stage of life, the most important change you need to bring about is get yourself a Long-term Care Insurance. This Insurance Policy is meant to pay for custodial care in a nursing home or assisted-living facility, which generally involves heavy expenses. You are also entitled to getting professional at-home care under this policy. Your other Insurance requirements remain more or less the same.

It is when you retire from your job that you will need major changes in your Insurance coverage / policies. With no job, you will not have any need left for a disability coverage.

In this stage, your (as well as your partner's) health is your major problem; so, the most important Insurance policy for you will be Health Insurance. The benefits of Medicare are not available unless you attain 65 years of age; hence, you will need to seek coverage under some state-run or private policy if you retire before 65. Medicare generally takes care of about 55 percent of a retired person's medical expenses, so you will need supplemental policy like the Medigap Insurance.

The other policy, which you need to continue in this stage, is the Long-term care policy. You may also continue your Life Insurance to cover your debts or if you want to pass the death benefits to your adult children. -------------------------------------------------------------------------------------------------------- If you are a business owner get listed at Best Insurance Site, part of Localwin Network.---------------------------------------------------------------------------------------------------------