Timehop: Take a Virtual Trip Down the Insurance Timeline

By theadmin

Young and single, insurance may be the last thing on your mind. But as the dots of your life start connecting — marriage, a home, kids — you start to see the value of policies that protect you and your family. Taking time to guard against financial ruin will turn out to be a task you’ll make a pretty high priority. Here’s a look at the stages of life and the kind of insurance you may need during each one.

Fact: The Insurance Information Institute (III) reports that at least 32 million U.S. households own insurance policies that aren’t right for them, according to a survey by the Independent Insurance Agents & Brokers of America Inc.

Newlyweds

There are so many things to take care of when getting married: the ceremony. The honeymoon. The merger of two households. Who wants to think about insurance policies? They may seem like one more technicality amid the marriage license, thank-you notes, and name-change paperwork. You’ll get around to it eventually, right? But policies that protect the one you love can serve as a strong financial foundation. They should be as secure at the start of your marriage as the vows you make to one another.

Homeowners or renters insurance. Even if you’re renting, insurance can protect your mutual belongings. Once you own your first home, it can’t really feel like a safe haven unless it’s protected with the right coverage. Getting a mortgage loan can also be potentially slowed down without homeowners coverage.
Life insurance. If both spouses work, compare employee plan options and look for and handle beneficiary designations accurately. Maybe it feels a little morbid amid the joys of a wedding, but it is crucial to learn the difference between term policies (provide coverage for a set number of years) and whole-life policies (provide coverage for life and offer the chance to build cash value) so you can decide what’s right for you. You’ll also want to be sure you have adequate coverage.
Auto insurance. The III says married couples may qualify for a discount as you combine coverage for two vehicles.
Health insurance. Compare policies through both workplaces but also consider options such as a health savings account, which allows you to set aside funds to cover what employer policies don’t and save for future medical expenses tax-free.

Birth of first child

Once a little one joins the family, life gets more interesting — and requires more responsibility.

Life insurance. You may need to apply for more life insurance — and at least add your new bundle of joy as a beneficiary.
Health insurance. Add your child to your health insurance policies at work and on private health insurance policies.

Home renovation or move

Adding on a bedroom or sun-room? Redoing the kitchen? Moving to a larger home?

Homeowners insurance. Be sure to talk to your Agent before you begin construction to discuss your new upgrades and to ensure you’re sufficiently covered for all the extra people (and liabilities!) coming to your front door. In case of a move, be sure to discuss your plans, such as off-site storage units, and moving truck liabilities, before you pack your first box.

Birth of second child

Same drill as the first time around. Think about all the financial matters your growing family will face in the event of your passing including debt, mortgage, and even college tuition.

Life insurance. Review life insurance policies to make sure you have enough coverage, and update your beneficiaries.
Health insurance. More people in your family means more medical expenses. Review coverages and adjust as needed.
Auto coverage. Did you buy the minivan or an SUV now that you have a growing family? Make sure your auto policy coverages grow with your family.

Increase in net worth

Over time, you’re likely progressing in your career and growing your net worth. Maybe you inherit more land or buy a second home.

Umbrella policy. As you acquire more assets, your liability risk goes up. You may want to consider an umbrella insurance policy, which protects against legitimate or frivolous lawsuits, should someone get injured on your property.

First child gets a car

Yes, it’s hard to believe baby No. 1 is taking a selfie with a new license.

Auto insurance. Whether this new driver has his own car or will be driving yours, this milestone merits a call to your insurance Agent to let them know you have a new driver ready to hit the streets.

Job change

Whether you get laid off or take on a new role, mid-career job changes require scrutiny of your benefits, including healthcare plans and life insurance options. Make sure you understand employee-related coverages and adjust private insurance policies to maintain secure coverage. If your job requires a move, you’ll need to ensure new homeowners insurance coverage, too.

Ready for retirement

You may feel ready, but are your finances? As you examine your retirement savings, consider your insurance coverage as part of the big picture. By now you’re an expert at keeping those auto policies up to date, but a 360 Review can make sure you have all the bases covered.

Health insurance. If you qualify for Medicare at age 65, that federal program will help defray your medical expenses. But if you’re retiring earlier, you’ll need to consider private health insurance to find out how your employer’s health plan can be extended.
Homeowners insurance. Are you planning to downsize? Your homeowners coverages might be able to downsize, too.
Life insurance. Kids are grown. House is yours free and clear. But life insurance can still have a key place as part of some financial plans. Whole-life insurance can build cash value. And the death benefit can help a surviving spouse in addition to other income streams.

Whether you’re heading for the altar or preparing for retirement, keep these things in mind: the more assets you have, the more life insurance you might consider; acquiring insurance earlier in life is most often easier (and less expensive too!); and you’re not alone — there’s a Texas Farm Bureau Insurance Agent in your neighborhood who’s just a phone call away. Find yours using our simple Agent locator tool.

Coverage and discounts are subject to qualifications and policy terms and may vary by situation. Life insurance products are offered through Southern Farm Bureau Life Insurance Company. © Texas Farm Bureau Insurance 2017