Life Stage Analysis

Life Stage Analysis

It is important to understand that insurance does not come in a ‘one-size fits all.’ Depending on your stage of life, your insurance needs and thus plan will change. So it is vital that you evaluate your financial commitments and long term financial needs before choosing a product.
Below, you will find some of the most common life stages and their respective insurance needs. While this may or may not be completely accurate for you, it will provide a general idea of the products that’ll suit you.
Additionally, our Financial Advisors will always be happy to meet with you to assess your specific requirements.

Ages: 16 to 25 (Unmarried, young professionals)

Your Stage Overview

  • Might still be in higher education
  • First job
  • May or may not have a spouse
  • May or may not own a home
  • May or may not have dependants

Your Financial needs

  • May still have some support from parents
  • May be saving towards future family needs - say buying a home
  • May be paying off education loans
  • Likes to spend money

Your Insurance needs

Since there are likely to be no dependants, your life insurance needs are probably zero. However, there is a need for savings.
Examples:

  • Go on a holiday.
  • Buy a new car.
  • Buy furniture, curtains, carpets etc., for their home.
  • Buy a house.
  • Buy jewelry.

Suggested Insurance Products

Shorter term Endowment Assurance products

Ages 25-35 (Married, with or without kids)

Your Stage Overview

  • May be married with or without kids
  • Probably in debts - (for e.g. home loan)
  • Earns a moderate income
  • Has a high expenditure
  • Does not have much accumulated wealth
  • Needs tax planning

Your Financial status

  • High expenditure due to installment payments for house, car, etc.
  • Worried about protecting dependants in case of death, prolonged illness or disability
  • Need to save for children for their education, marriage etc.
  • Need to support elderly parents
  • Need to start planning for retirement

Your Insurance needs

This stage calls for maximum insurance protection because of the following reasons:

  • High debt, high expenditure phase
  • Family’s dependency on your income
  • Low accumulated wealth
  • Need for retirement planning

Suggested Insurance Products

If you are in this stage of life, there is a vital need for temporary (Term) or whole life insurance products, critical illness products and long-term disability products. The policy duration should be at least as long as the expected period of dependency or up to the normal age of retirement.
If you’re in this stage, Term Insurance products such as MetLife Mortgage could benefit you. With MetLife Mortgage, you can be sure that your loved ones won’t be put under financial stress of paying back loans in case something unfortunate happens to you.
You could also invest in endowment products that promise periodic returns for life’s milestone moments - your child’s education, marriage etc. Endowment assurance products and deferred annuity products can be considered for retirement savings. Profit and unit-linked versions can protect you from future inflation.
Including Critical Illness, Disability Income and Term Insurance products as riders with Permanent or Endowment Assurance products will form the cheapest way of getting income, death benefit protection and savings.

Ages 35-60 (Family)

Your Stage Overview

  • Older, financially independent children
  • Reduced debts or loans
  • Decreased expenditure
  • Probable period of redundancy

Your Financial needs

  • Save for retirement
  • Enjoy a lifetime holiday on retirement
  • Protect dependants financially against your death, prolonged illness or disability
  • Save for children

Your Insurance needs

Retirement planning, wealth transfer or other savings vehicles could be used for this stage of life. Your emphasis should be on return on investment, so with-profit or unit-linked products would be ideal. If you are close to retirement, you could also opt for guaranteed products.

Suggested Insurance Products

Provide for your retirement with either with-profit or unit-linked endowment assurance or deferred annuities. If you are risk-averse, choose deferred annuities.
With-profit or unit-linked whole life insurance products would be most useful for accumulating wealth to be transferred to the next generation. Moreover, with the higher disposable income at this stage, single premium products could also be attractive, providing a lump sum benefit for the future.
If you are in this stage of life you can opt for 'MetLife Monthly Income Plan' a participating plan which guarantees you a monthly regular income for you and your family when you are there and even if you are not there for 15 years or till end of the policy term. Moreover you choose the monthly income that you want and we guarantee you that amount.

Ages over 60 (Post retirement)

Your Stage Overview

  • Need to move from employment to retirement
  • Debts are either paid off or very minimal
  • Reduced income
  • More accumulated wealth / savings
  • Risk of running out of money, in case of long life spans
  • Imminent need for long term care

Your Financial needs

  • Need for considerable savings if you live a long time
  • Need to save for spouse
  • Save for medical expenditures - for both self and spouse
  • Need to save for children

Your Insurance needs

  • Protection for remaining years
  • Protection for spouse in case of death
  • Wealth accumulation for children

Suggested Insurance Products

  • Single premium immediate annuities (with certain annuity option)
  • Long - term care products
  • Whole life products for wealth transfer