As far as insurance coverage goes, we all agree on one thing. Premiums certainly cost big dollar bills! Certainly, there’s a reason for it. We are paying for a pool of protection. Our collective contributions are there for risk exposure that each of us faces. If I suffer losses and damages and submit a legitimate claim, that pool of premium payments is what pays me. If you suffer losses and damages and submit a claim, that pool of premiums is what pays you.
Of course, every form of insurance coverage is not applicable for every stage in life. The following will give you a good guide as to when it is smart to acquire specific coverage and when it is not.
Timeline of Health, Auto, Home, Business Coverage
• Teenage Years
Though teenagers put a big grimace on auto insurance premiums, it’s absolutely essential that you cover your teen driver. Trying to skimp on teen auto coverage will only backfire if he or she is involved in an accident. Chances are it will happen. When it does, you want the full protective liability coverage!
• Twenty to Thirty
The general consensus among this age group is that ‘we are all-powerful’. Unfortunately, no human being can lay claim to that nonsense. Accidents, sickness and liability can happen to everyone. Number one tip of the day: get health insurance even if you are healthy!
• Thirty to Forty
This age group is personified by being more settled as far as assets, and family. Typically, this group has children, a home and more than one car. Balanced coverage in the form of auto insurance, homeowners or renters insurance, health coverage and life insurance is a must. It is also wise to consider an encompassing umbrella policy at this point. If you are a professional, it’s a professional liability policy is a must and if you own a business, a general liability policy is the way to go.
• Forty to Fifty
This age group usually is at the summit of profit-making, with a spike in personal assets and net worth. Auto, homeowners, health, life and umbrella coverages are things you cannot do without. It’s about time to look into adding disability insurance as well.
• Fifty to Sixty
At this stage, children begin to go out on their own. It’s important to discuss their responsibility to take care of their own insurance needs. Equally as vital is the need to evaluate your mature status and elevated needs of coverage. Contemplate nursing home insurance and a living trust fund for your heirs.
• Sixty Plus
For those who at this point have not thought about nursing home insurance, now’s prime time! It’s a good idea as well to go over all your different forms of coverage and see if you need to add anything to it.
To life! Responsible living means getting adequate insurance coverage. Once you’ve taken care of your needs, you can surely rest assured with undisputed peace of mind!
