What are the insurance basics I need to consider during the various decades of my life?
Assuming that you’ve taken care of insurance for your car, house and medical needs, the No. 1 priority in your 30s is disability income insurance. You depend on your income for everything, so it’s important that you protect it. You then want to look at your life insurance needs. In your 30s, life insurance probably means a small base of permanent insurance and more term insurance. In your 40s, you continue to need disability income insurance, but you may want to re-address your life insurance needs—converting some term insurance to permanent. Your need for life insurance coverage doesn’t go away, but it could change as you get older. When you get into your 50s and the first half of your 60s, with your children on their own, it’s time for you to look at long-term care. Also, if you’ve protected your income effectively, it’s time to start looking at ways to efficiently transfer your wealth someday and not leave a tax burden to your spouse and children. Then, at 65-plus, you start looking
