Reassessing life insurance:
What every 40 year-old needs to know

INSURE

Most people tend to think about their life insurance needs around the time of a major life event, like getting married, buying a house, having a child or losing someone they love. But there are other times in life when you should reassess. Your 40’s are a great time to take another look because goals and priorities may have shifted from when you first got your coverage. Read on for a bit of insurance guidance and reassurance.

Taking care of today — looking out for tomorrow.

Your 40’s are an exciting time of life. Personally and professionally there’s just so much going for you. To say nothing of juggling multiple financial needs. There’s the immediate day-to-day living expenses like food, clothes, entertainment, car- and mortgage- payments. And then there’s the longer-term needs that take a bit of planning and prioritizing — saving for your child’s college and saving for your retirement.

These are all important and worthwhile pursuits, but they can at times feel a bit overwhelming. And sometimes competing.

Here’s the good news. Your 40’s are quite often a time of professional growth and advancement. And usually, increases in responsibility come with increases in salary. In fact, your 40’s are often the beginning of your peak earning years. So now’s a great time to recalculate your coverage needs to help ensure your family’s protection is up to date and in line with your current salary and future earning potential.

How much do you really need?

Many people use the classic “rule of 10” to figure out a baseline. You simply multiply your current salary by 10 to figure out how much life insurance you need. But there are other ways to get to the “right” amount. We’ve written an article What’s your number? that offers insight into new ways to think about how much insurance you might actually need.

While term insurance is typically the least expensive, it only covers you for a set period of time and only pays a death benefit to your beneficiary. Other types of policies provide lifetime protection as well as the potential cash value. But regardless of which type you choose, at John Hancock, they all come with Vitality — an innovative program that rewards you for the everyday steps you take to live a longer, healthier life. These include things like taking a walk, eating more fruits and vegetables, meditating, even getting a good night’s sleep.

Now what?

Sometimes it helps to talk with your family and friends — find out how others your age are handling the financial needs of living well today with an eye to protecting tomorrow. Or better still, talk to an insurance professional. Someone who can help you choose what works for you and your family.

John Hancock’s been helping people make the most of their financial opportunities for more than 157 years.