Understanding ‘Life Stages’ for insurance purposes

Wednesday, July 21, 2010

When you consider the key events which take place in the average person’s life, a number of significant milestones spring to mind. Birth, university, engagement, marriage, pregnancy, childbirth and retirement are all common key events in life that most of us can look forward to with some confidence that they will take place.

Within the insurance industry, these milestones are known as ‘Life Stages’, as they constitute the biggest and most high impact events which change the course of our lives forever. From the perspective of the insurer, it is important that these Life Stages are communicated as and when they happen, to make sure that any changes don’t have an effect on your life insurance policy.

Life Stages can also include any other significant event which has an impact upon your day to day life, whether positive or negative. The diagnosis of an illness, the birth of a child, bereavement of a spouse or close family member, divorce or even the acquisition of a new job all have a bearing on the type and level of life insurance which you need. Life insurance policies tend to be tailored for the individual, so it makes sense to keep your insurer closely informed of anything which takes place in your life, which may impact the type of cover required, the duration of the policy which is needed, or the requirements of family who may be left behind.

One of the great benefits of life insurance policies is that they tend to be very flexible. Should your requirements or circumstances change, to the extent that your existing policy doesn’t cover your needs any more, it’s very straightforward to cash in your policy. You can then take out comprehensive cover with an alternative insurance provider whose policy is more suited to your requirements, at that time.