Are You Properly Insured? A Year-End Checklist for Your Life Stage

The end of the year is the perfect time to review your finances—especially your insurance coverage. If changes have happened during the year, like marriage, a new job, or buying a house, the types and amounts of insurance you carry should be reviewed and potentially updated. “Insurance needs shift as life changes,” says Justin Edwards, Associate Wealth Manager at Echo Wealth Management. Justin earned additional certifications in insurance and helps the Echo team by looking at client portfolios through an insurance lens. Whether an annual insurance review is warranted “depends on the age of the client,” he explains.

Young Professionals

For young professionals, insurance often begins with what’s offered through an employer. “We take the approach of reviewing their employer benefits first. What do they have available for life insurance and disability insurance? Do they have life or disability insurance outside of their employer? As things change and life happens, it never hurts to have a policy that follows you outside of your employment,” Justin explains. Balancing these factors with the client’s goals ensures the right types and levels of coverage are in place.

Mid-Career

As careers advance and financial obligations grow—like raising children or funding college—insurance protection becomes even more critical. “If something were to happen, like disability or a spouse’s death, it’s important to ensure the family can take care of debts and still live a comfortable life,” Justin emphasizes.

This perspective is deeply personal for him. In 2008, his father and two brothers passed away in an airplane accident. His family’s financial stability during that tragedy came from careful planning and life insurance recommended by a trusted professional. “It was at that moment I realized, I want to be that trusted professional,” Justin recalls. He often reflects on how different his family’s future might have been without the right protection in place.

Retired or Nearing Retirement

For those retired or approaching retirement, a year-end insurance review typically isn’t necessary. At this stage, most financial plans are set. However, Justin advises considering long-term care insurance or planning for medical insurance before Medicare. “You want to be able to live comfortably, get the care you need, and enjoy life as much as possible—for yourself, and also for your family.” He cautions that minimal coverage may fall short of expectations. “Once a long-term care event happens, the average timeframe is three to five years until death. You want adequate coverage that allows you to live comfortably and avoid putting undue burden on your family.”

Ultra-High Net Worth

Greater wealth brings greater complexity, along with the need for additional investment, insurance, and tax strategies. “We may be able to utilize different insurance vehicles to provide either a tax-free income after death, or protect or shelter some assets outside of an estate,” Justin notes. Echo Wealth considers each client’s unique goals and the broader tax landscape when tailoring solutions. “The ultimate goal is protecting your assets and protecting yourself for the long-term.”

No matter your life stage, reviewing your insurance coverage ensures peace of mind and financial security for you and your loved ones. As the year closes, take time to confirm that your protection matches your current circumstances and future goals.