In Part I we wrote about some of the early life changes that affect your insurance. Here we are going to focus on some of the stages of your adulthood and senior years.
Starting Your Family: We could probably make this a whole article on its own but here we will just look at a few considerations for your insurance when you start your family.
- Review your life insurance policy and make sure you have enough coverage for your growing family. Speak to your financial planner about why you may want to buy life insurance on your children for college planning and for protecting yourself against any college loans you may have co-signed.
- Take a look around. I bet you now possess a lot of money’s worth of kid stuff. Do you have enough personal property coverage for all those items? Do the kids have tablet/laptops/expensive smart phones etc? Those items will need special attention on your home policy.
- Are your tweens and teens on social media? Make sure you have the right liability coverage (Personal Injury Coverage) on your home policy in the event you are sued for libel because your child wrote something on a site that injured someone.
- Review your auto insurance. Look for good student discounts and advanced driver training. Remember, lower liability limits may be cheaper but consider the cost of paying out of pocket because your teen caused an expensive accident and you had low liability limits (see previous article).
Sending the Kids to College or Workforce: Well, you've survived their childhood and you have gotten them ready for college or the workforce. If your kids are away at school, check with your auto insurance company to see if there are discounts for them being out of the house. If your child is living in a dorm, see if your home policy gives them enough coverage while they are away. If they are living in an apartment, it's time for them to get their own renter's insurance policy to fully provide them with property & liability coverage of their own.
Your Midlife Insurance Review: Now the kids are on their own for good, you have some free time to spend on yourself and your partner. Make sure your auto & home liability limits are high enough to protect the assets you have been acquiring. Check to see what discounts are available on your home and auto policies. If you are 55 or older, some home insurance companies offer mature homeowner discounts. Did you put your home in the name of a trust? Be sure to have that trust listed on your home policy so it is covered for liability.
Your Senior Years: Hopefully, you have a nice retirement plan so that when you and your partner are ready to leave the workforce you can do so comfortably and maintain your standard of living. Part of your strategy should be protecting your retirement assets and reviewing your insurance needs. If you have paid off your home, don't think that you do not need to insure it anymore! If you don't have the funds or the will to pay out of pocket for a loss, keep your insurance in place. Most auto insurance companies reward mature drivers (65+) with a lower rate class and also offer discounts for low mileage. Consider looking into mature driver refresher courses. In addition to the benefits of reviewing the rules of the road, you may also be able to get a discount on your car insurance for taking and passing a course. If you are on Medicare, set up a time to meet with a Health Insurance Agent and check for gaps in coverage and fill them with a supplemental insurance policy. You should start looking into long term care insurance, it's better to do it sooner than later. This coverage will help pay for the cost of at home or nursing home care for a person who is at the point in their life where he or she can no longer care for him or herself.
At Georgetown Insurance we are committed to being your life-long insurance partner. Many of our customers have been with us throughout their whole lives because we are here to help you with your insurance plan for every stage of your life. Contact us anytime you have a question or concern with your insurance.