Insurance for Every Phase of Life

DCM does not sell insurance. Our fiduciary duty is to serve your interests above our own in every single thing we do. You can be sure that the advice you receive has your best interest in mind.

Understanding Risks and Opportunities
As part of your financial plan, it is important to understand not only where the opportunities lie but also where the risks are. Without proper planning, unexpected expenses or loss of income can derail an otherwise solid plan. Insurance plays a pivotal role in trying to mitigate these risks. However, your insurance needs change as you progress through the various stages of life.  

Starting Out: Health and Automobile Insurance
As you enter the ‘real world’ of adulthood, your primary insurance concerns typically revolve around your health and automobile coverage. Maintaining appropriate health insurance is an essential part of every financial plan. You never know when a health situation will arise, and the unexpected expenses could be devastating. Exploring options available through your employer-based or individual marketplace plans is important to secure quality, affordable health coverage that fits your needs.

Regarding automobile insurance, we sometimes take it for granted, but by driving an automobile, we assume significant risks. The financial implications of an automobile accident can also be devastating. You always want to ensure your automobile coverage is adequate and, at a minimum, provides liability protection if you were to be at fault in an accident.

Building Your Life: Home, Marriage, and Family
As you grow older, life events such as buying a home, getting married, or starting a family bring new joys and responsibilities. These milestones also expand the scope of your insurance needs. For example, a mortgage or dependents add another layer of responsibility that relies on your ability to provide income. If you lose that ability because of death or disability, it could put your family in an untenable financial situation.

This is where life and disability insurance become integral parts of your financial plan. Life insurance can provide a death benefit, and disability insurance can provide a steady income stream that allows you or your dependents to maintain your lifestyle. At this stage of life, you will want to work with a professional who can provide a comprehensive analysis. This can help ensure you have the appropriate level of life and disability coverage to meet your needs and offer peace of mind.

Buying a home means adding homeowners insurance to your plan to protect against accidents, lawsuits, or natural disasters. As you accumulate assets like jewelry, art, or collectibles, consider adding umbrella insurance as a cost-effective way to provide additional liability coverage beyond what your automobile and homeowners policies provide. Finally, as your family grows, you will need to revisit your health and automobile insurance to provide your dependents with proper coverage. 

Approaching Retirement: Your Evolving Insurance Needs
As you near retirement, your insurance needs continue to evolve. The closer you get to retirement, the income replacement needs covered by life and disability insurance may decrease. However, you may decide to maintain some level of life insurance for legacy or estate planning purposes.

Thinking about aging and a decline in health is not something that most people enjoy. As time progresses and you approach your golden years, you may need some form of long-term care. Expenses associated with long-term care can be exorbitant, and you will want to start thinking about strategies to plan for these expenses, which could include long-term-care insurance.

Health insurance is an ongoing need throughout your life, especially at this stage. If you retire before becoming eligible for Medicare, explore individual marketplace options that will best bridge the gap. There is a lot of confusion surrounding individual health care and Medicare, making it challenging to navigate these markets. Choosing the wrong coverage can mean missing out on essential services, which could significantly affect both your health and finances. It is important to select a plan that meets your needs to avoid these potential issues.

Navigating Life’s Chapters with Confidence
Just as your life passes through various chapters, so do your financial risks and corresponding insurance needs. Determining what coverage you need and how much can be confusing and overwhelming. As part of your comprehensive financial plan, DCM is dedicated to helping you understand this important topic so you can make informed decisions based on your needs, values, and goals. If you’re interested in an insurance review, we’re here to assist you.


This article was featured in the Fall 2024 edition of the Rising Dividend Report.

Read more articles from this issue here.