The Insurance You Need in Every Stage of Life
From starting your career to planning for retirement, here’s what insurance to prioritize in your 20s, 60s, and everywhere in between
Insurance isn’t one-size-fits-all—and it shouldn’t be. The coverage that makes sense in your 20s can look completely different from what you’ll need in your 60s and beyond. As your life evolves, so do your financial responsibilities, health considerations, and risk factors. Your insurance coverage needs to keep pace.
So, what kind of coverage should you prioritize as a young adult? And how does your insurance strategy shift as you age and enter retirement?
We’ll break it all down to help you feel informed, empowered, and confident in your coverage at every stage of life.
Understanding insurance for young adults
For many young adults, managing your own insurance is a new and important milestone. At its core, it’s about protecting your health, income, and belongings while keeping costs manageable. A few key types of insurance every young adult should discuss with their insurance agent include the following:
- Auto insurance: If you drive, auto insurance is nonnegotiable. In fact, full coverage (comprehensive and collision) is typically required for financed vehicles. However, if you have an older vehicle that you own, liability insurance may be enough. Shop around to compare premiums, and take advantage of safe driving and other discounts you may be eligible for. Always talk to your insurance agent to learn what may be required in your state and best for your situation.
- Renter’s insurance: If you rent, you may think your landlord’s policy has you covered; however, in most cases, it doesn’t. Renter's insurance protects your stuff and covers you if someone gets hurt in your apartment. It may even be required by your landlord or apartment complex. The good news is it’s typically an affordable monthly cost.
- Health insurance: Even though you may feel invincible in your young age, a surprise medical bill can knock you off your financial feet. If you’re younger than 26, you may be on your parent’s plan. Otherwise, shop for coverage through your employer or HealthCare.gov, the official US government website where individuals can compare and enroll in health insurance plans under the Affordable Care Act. Look for a plan with a manageable deductible and out-of-pocket maximum as well as solid preventive care and a large network of doctors.
- Life insurance: This may not seem like an urgent need, but buying life insurance young means locking in lower premiums. And, if you have student loans or someone who depends on you financially, this can provide peace of mind for your loved ones if something unexpected were to happen to you.
Understanding insurance for retirement age
When assessing insurance for retirement, your focus often shifts to healthcare, protecting your home, and preserving financial stability for the future. A few key types of insurance to review with your agent include the following:
- Health insurance: This becomes even more important in retirement. When you turn 65, Medicare kicks in; however, it’s not a one-size-fits-all plan. Most retirees choose between Original Medicare or a Medicare Advantage plan. Make sure your plan includes your current doctors as well as coverage for prescriptions and any other care you may need.
- Auto insurance: You may drive less in retirement, and some companies offer low-mileage discounts to help with costs. However, it’s still important to maintain at least the minimum required coverage if you’re on the road. Consider shopping around again to compare rates or bundling with a spouse’s policy for added savings.
- Home insurance: Even if you own your home outright, don’t assume you can skimp on home insurance. You still need protection from weather, theft, liability, and major repairs. Review your policy annually to ensure it’s up to date with your home’s value and contents.
- Life insurance: Whether or not you need life insurance depends on your personal situation. If you no longer have dependents or major debts, it may not be necessary. However, some retirees keep policies to help cover final expenses, leave a legacy, or assist with estate planning. For those who don’t need a full policy, a smaller “final expense” plan can help cover funeral or burial costs.
- Long-term care insurance: This type of insurance helps with the cost of assisted living, home health care, or nursing home care—expenses that Medicare doesn’t fully cover. The earlier you buy it (typically in your 50s or early 60s), the more affordable it is. Not everyone needs this coverage, but it’s worth considering.
How to choose the right coverage for you
No matter your age, choosing the right insurance starts with knowing your needs, goals, budget, and opportunities to save.
- Assess your current lifestyle and future goals. Young adults may want to prioritize affordability and basic protection, while retirees should focus on managing healthcare costs and preserving their financial legacy.
- Compare insurance quotes from multiple companies, and bundle insurance where you can. Many insurers offer discounts for combining auto, renter’s/homeowner’s, and even life insurance. Also, ask about other discounts you may qualify for.
- Mind your credit score. Insurers often use a credit-based insurance score to determine premiums, especially for auto and home insurance. Maintaining good credit can help keep costs down.
- Review your policies annually. Life changes quickly—getting married, having kids, downsizing, or retiring can all affect which type of coverage you need.
- Don’t be afraid to ask questions. Insurance can be confusing, but your insurance agent can help you make the smartest, most personalized choices for you.
Whether you’re securing your first insurance policy as a young adult or fine-tuning insurance for retirement, having the right coverage is all about protecting what matters most. A little planning now can go a long way toward peace of mind at every stage of life.