As a parent, I’m routinely looking for the best ways to protect my kids and my family at every stage of life. Sometimes, especially when we’re young, it’s easy to convince ourselves that nothing bad will ever happen to us or the people we love.
But as we grow older and reach significant life milestones — like starting a retirement fund, getting married, becoming homeowners, or having children — the need to plan ahead and have tough conversations about the future begins to feel more urgent. And often, by the time you start thinking about things like life insurance, you’ve put it off too long.
I asked Denise M. McCauley, President & CEO of WoodmenLife, to give me a breakdown of life insurance, when should you get it, what kind do you need, and what are some basic things to consider at each life stage? Read on for some of her tips.
Here’s the thing: there are actually a lot of good reasons to think about life insurance while you’re young. For one thing, life with kids costs a lot, and everything from childcare to education to groceries to clothing goes up in price each year.
Life insurance can offer security for your family in the event of income loss, help keep you and your kiddos in your home, and cover the cost of providing care, schooling, and necessities for them no matter what happens to you.
Secondly, life insurance policies tend to be cheaper the younger you are. Denise says, “The price of life insurance starts to go up the more advanced in age you become so it’s best to get policies while you are young and in good health.”
And thirdly, certain life insurance policies (like whole life and universal) can build cash value so, in the event you don’t need to cash in your policy early on, you can use this money as an additional income stream in retirement.
Life insurance is not one size fits all, but there are some factors to think about at each life phase:
Getting married: When you’re combining your life with another person’s, you may also be combining your finances — or at least sharing expenses. Make sure you’re aligned on big-picture financial goals (e.g., retirement, homeownership, having kids) and ensure both partners are protected with a life insurance policy that can cover the unexpected (like a large medical expense, loss of income, or — worst-case scenario — death).
Buying a home: For a lot of us, our home is our biggest asset. That’s why it’s so important to protect it. Mortgage life or term life insurance are two ways to make sure your mortgage is covered, even if a breadwinner’s income is lost.
Having kids: Parents will do anything to protect their children, and life insurance can be a great safeguard. Denise notes that life insurance can help protect a family’s financial resiliency if a parent passes away, securing living expenses and education funds for your children. This is an especially good idea in the tragic event that both parents pass — your children will still have money set aside for their guardians to raise them the way you would have. And for young families, term life is a great option because it’s the most affordable way to purchase a policy.
Midlife and beyond: You can adjust your coverage as you pay down debts and as your kids grow up, go to college, and leave home. This is a good time to reassess your policies and adjust them to fit your current financial goals — like your dreams for retirement.
Life is not predictable and life with kids is full of even more surprises. Your life insurance needs will change as your life does, and it’s important to periodically reevaluate and adjust your coverage to fit the stage you’re in.
No matter what your goals are or where you’re at right now, there’s a policy that can work for your budget and your family’s needs. It’s really nice to have that coverage in place so you can be in the moment with your littles now and know they’ll always be protected.
To learn more about WoodmenLife’s life insurance and retirement planning solutions, or to learn more about how they support communities through local initiatives, donations and volunteering, please visit https://www.woodmenlife.org/.
Marissa is a Pediatric Occupational Therapist turned stay-at-home mom who loves sharing her tips, tricks, and ideas for navigating motherhood. Her days are filled starting tickle wars and dance parties with three energetic toddlers and wondering how long she can leave the house a mess until her husband notices. When she doesn’t have her hands full of children, she enjoys a glass (or 3) of wine, reality tv, and country music. In addition to blogging about all things motherhood, she sells printables on Etsy and has another website, teachinglittles.com, for kid’s activity ideas.
