Life is all about change. We age, of course, but every year also brings other changes — in our working and personal life; in our family and its dependency on us; in our financial status, goals and expectations for the future.  And as these things change, so does our need for insurance.  To help you make the right choices at the right times, here is a brief look at the types of insurance that make the most sense for each of your life’s three main stages.

Under 40: You’re beginning to build a life.  Insurance should be a simple and economical solution to your current and emerging needs.  You’ll want to protect your family, establish a source of cash that will pay off the mortgage and other debts should you become unable to do so, and perhaps provide funds for the education of your children.

Life insurance pays a lump sum to your beneficiaries in the event of your death.  Term insurance is often the most affordable kind of life insurance, so it’s usually a good buy for young families that need a lot of coverage.  A term plan pays a specified amount should you die, but premiums increase with each policy renewal and can get very expensive over time.

Disability insurance is vital at this stage. It provides a regular stream of income should you become disabled and unable to work.  If you already have some disability insurance as part of a benefits package through your employer, you might want to consider backing it up with your own personal plan. Your employer-sponsored plan likely includes exclusions or restrictions that can severely restrict the amount or length of your benefits.

40 – 60: Your personal and financial lives are becoming more mature and much more complex.  You may wish to increase life insurance protection for both you and your spouse to keep pace with your income and lifestyle. Or you may recognize a need to change the type of coverage in order to fulfil your estate plan. Permanent life insurance — Whole Life and Universal Life — renews automatically for your entire lifetime, as long as you continue to pay the premiums. Whole Life offers a guaranteed amount of insurance coverage for life and unlike term insurance, the price never goes up.  Universal Life provides insurance for life and an investment savings program you direct that delivers tax-deferred growth (subject to certain limits), and the accumulated value of the policy is tax-free when paid out to your beneficiary at death.

Disability insurance is an even more important consideration at this life stage.  Now is also the time to check out Critical Illness insurance which provides you with a lump sum payment when you are diagnosed with any of the medical conditions covered by the policy — such as heart attack, stroke or cancer — and you can usually use the payout any way you wish.

Over 60: As you age, you will have different reasons for increasing or expanding your insurance protection.  You may want life insurance to pay estate liabilities, such as tax on registered savings plans and capital gains on your real estate and other investments so your beneficiaries can inherit the entire value of your estate free of tax consequences.  Universal Life is a good choice as a means of estate creation and preservation.  You can also use the investment component as a source of non-registered retirement savings.  Generally, term insurance is not a good option for you.  Most term policies do not allow you to renew after age 75 or 80, by which time the premiums would be prohibitively expensive.

Unfortunately, your chances of encountering a disability rise with age.  Check your disability coverage and consider adding Long-Term Care insurance to protect you and your loved ones from the financial burden of a lengthy illness requiring home care or nursing home care.

A professional financial advisor can tailor-make an insurance program that protects your income, assets, family and future during every stage of your changing life.

This column, written and published by Investors Group Financial Services Inc., is presented as a general source of information only and is not intended as a solicitation to buy or sell investments, nor is it intended to provide professional advice including, without limitation, investment, financial, legal, accounting or tax advice. For more information on this topic or on any other investment or financial matters, please contact your Investors Group Consultant.  Insurance products and services are distributed in Quebec by Les Services Investors Limitée (Financial Services Firm), and elsewhere in Canada by I.G. Insurance Services Inc. (insurance license sponsored by The Great-West Life Assurance Company).