Insurance: Fulfil your family’s dreams

Childhood : A child’s own financial concerns are likely to centre around the question ‘why don’t I get as much pocket money as everyone else in my class?’ As parents and grandparents, we can help by starting to save for those bigger things that will be important later, like school or college fees, a deposit for their first home, first car, a wedding. In these cases investment policies that will generate a lump sum in the future may be required.

First Job: As a young adult, you become more independent and self-sufficient. Hard though it is at this stage, think about what you want and start saving a little now so you’ll avoid having to save a lot later on and save on tax. Buy life insurance now, while you’re healthy and the rates are low.

Young Married: This is the time many people decide to buy their first house and take their first step into the world of financial planning by arranging a mortgage. Depending on your own situation, you should consider life insurance and protection policies. If a pension is the right way for you to save for your retirement, then the sooner you start saving the better. Also, consider investments if you plan to build up your savings for the future. Once you buy a house, the situation begins to change. Even if both spouses have well-paying jobs, the burden of a mortgage may be more than the surviving spouse can afford on a single income. Credit card and other debt can contribute to the financial strain. In order to make sure either spouse could carry on both of you should probably purchase a modest amount of life insurance. At the bare minimum, it will provide peace of mind knowing that both you and your spouse are protected.

Having young children: Before you had children you thought you were busy, you thought you had responsibilities. You want to be sure that if your income is lost your children will be provided for. So you should think about policies that provide financial support, should there be a death or should you be unable to work because of a specified critical illness. It is also important to make a will. Both spouses should carry enough life insurance to cover the expenses that would result from their death.

Mid-life Crisis or Security: It’s swings and roundabouts at this stage —your income may be higher, especially if one partner stopped work when the children were young and is back at work now. On the other hand, older children could be costing more, whether they are at home or away at University. Your aim now is probably going to be to ensure that you are making the maximum saving for your retirement, so it would be a good time to consider pensions and investments. Even if you started saving when you were young, check how your investment is growing and whether it is worth increasing the amount you are saving. By this stage your parents may be becoming less independent, and you could become involved in arranging investments to care for their financial needs. For many people, career advancement means starting a new job with a new company. At some point, you might even decide to be your own boss and start your own business. It might not be your top priority, but it is important to review your life insurance coverage any time you leave an employer.

The author is the chief executive officer of Aviva Life Insurance