Adequate Life Insurance Coverage Oakland CA

5 Common Sense Approaches to Adequate Life Insurance Coverage

Simple Steps to Insure Adequate Coverage During the Stages Of Life

Life Insurance for recently married couples: This is usually a time when two adults should consider your life insurance needs. At this stage of life newlyweds are typically starting working careers and acquiring joint liabilities such as a home and other debts. This can be completed by analyzing any coverage you may have with your employer and then supplementing that with either an inexpensive term life policy or mortgage protection insurance policy which may include additional mortgage payment riders for short term disability typically covering your mortgage payment for up to 24 months. Disabilities account for a larger percentage of hardships than death. If you do not yet have children then simply enough to cover your biggest obligations should be sufficient. Term and mortgage life provide the most affordable options for young and healthy individuals.

Employment, Career and or Spousal Changes and Life Insurance: Your employer sponsored plans may be canceled when you leave that job. Just like employer health insurance you may need to review your policy and either obtain group coverage at the new employer or increase your current supplemental coverage. Other reasons to review your coverage may include starting your own business, divorce, new marriages, hazardous occupation changes, quitting smoking or when one of the spouses stops working to care for children. All of these could affect the amounts of coverage needed, the cost incurred or the beneficiaries.

Life Insurance and the Golden Years: This is time to evaluate perceived needs. If seniors have already adequately planned for retirement they may need little if any insurance since their children are grown. Whole life policies can be a good choice for small amounts of coverage for seniors who may feel the need for some additional protection to cover special circumstances such as final expenses, burial, assisted living, long term care needs and provide income to the living spouse if the two were on a fixed income. Whole life can be purchased in small amounts without a medical exam for seniors who may have health conditions or are too old to qualify for term coverage. If policies are purchased early enough in the retirement stage the money can potentially accumulate cash value that could be borrowed in an emergency situation or simply serve as a living benefit income stream.

The 5 stages are simply a guide ,most importantly remember to take a look at your coverage to survey the risk of loss and if you have dependents and liabilities and the impact of death or disability would cause a great hardship then you need life insurance. Pick a coverage amount that is reasonably within your budget even if it is less than ideal.

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