As the years go by, your life and career will naturally evolve, and your priorities will shift accordingly. How you plan for the future will change, and you’ll think differently about protecting yourself and your loved ones.
We’ll share the stories of three families at different life stages. These personas will highlight how each family’s protection needs have evolved and which financial products could help them feel secure. Maybe you will relate to one of these stories, and the tips here can help you when thinking about your protection needs.
Henry and Henrietta are HENRYs (High-earners, not rich yet). They’re in their early 30s and have yet to hit their peak earning years in their high-paying careers. Henry is an employment attorney, and Henrietta is an obstetrician.
Henry and Henrietta have managed their money well. They have more cash in savings and investment accounts than others in their age group. They have also purchased a beautiful yet affordable home.
Currently, Henry and Henrietta aren’t too concerned about the years ahead. However, they do want to protect their physical health. They know one major medical emergency could wipe out their savings and bury them under a seemingly insurmountable mountain of debt. That debt could prevent them from pursuing other life goals such as starting a family or upgrading their home, which would be devastating.
Their financial professional recommended they purchase supplemental health insurance1 to help bridge any gaps in their employer-provided coverage. While several policies are available, they each enrolled in a cancer plan because the disease runs in both of their families.
Henry and Henrietta also purchased individual disability insurance policies. That way, if one of them became unable to work, the household’s essential expenses could still be covered without overburdening the other spouse.
Finally, Henry and Henrietta each purchased whole life insurance to supplement their financial strategy to increase their death benefits needs and provide another source of income in retirement. They also purchased additional term life insurance for added protection and to lock in their insurability in case there is a health issue in the future. The term insurance can be upgraded to a permanent policy, like more whole life, later on as their protection needs evolve. While their employers pay for some coverage by way of group plans on their behalf, the policies are relatively small. By purchasing additional protection, either spouse can comfortably cover the final expenses of the other, pay off the mortgage, and have as much time as they need to regroup from the loss without worrying about money.
Note: Henry and Henrietta each have significant student loan debt. However, they checked with a debt attorney, and neither would be responsible for the other’s balance if one of them should pass away.
Mark and Ben are in their mid-40s and are adoptive parents to two school-aged children. Mark is a senior software engineer, and Ben is the director of sales for a mid-size firm. While Mark earns slightly less than Ben, the couple still does quite well. Combined, they make close to $300,000 per year.
They have a sizable emergency fund and are on pace to comfortably retire as planned. Mark and Ben bought their dream family home a few years ago complete with a large, fenced-in yard for the kids to play in.
Since adopting their children, Mark and Ben’s protective instincts have kicked into overdrive. They can provide a wonderful life for their kids today, but they worry about the family’s finances should something happen to one of them.
Their financial professional advised them each to buy disability insurance and term life insurance policies. While their employers provide coverage as part of their benefits packages, it’s not enough to make the couple feel secure. By purchasing this additional coverage, Mark and Ben can be confident their children will have everything they need no matter what happens to them2 .
Disability insurance can keep the bills paid if Mark or Ben cannot work, which is especially critical as the cost-of-living increases yearly. Life insurance can cover funeral costs, a mortgage, college tuition, and other essential family expenses should one parent die.
Plus, term life insurance is affordable for healthy males in their mid-40s (roughly $344 a year for a 10-year term policy with $1 million in coverage with a guarantee that premiums will not increase for 10 years.3 This means Mark and Ben won’t have to sacrifice anything the family enjoys now to protect their future. When the term ends, the kids will likely be out of the house, so the couple can reevaluate their insurance needs at that time.
Brenda and Dan are affluent empty nesters in their late 50s. Their three grown children have moved into homes of their own.
They’ll pay off the mortgage on the family residence in less than five years. They’ve amassed an ample nest egg that will comfortably fund their golden years when they retire in the next decade.
They're looking further ahead since their finances are on track for retirement. They want to protect the wealth they’ve grown so they can leave an inheritance to their children. They also want to avoid leaving their kids with a heavy tax burden when they pass along their estate.
Brenda and Dan recently met with their financial professional for estate planning guidance. They suggested the couple purchase whole life insurance and long-term care insurance policies.
Whole life insurance offers permanent coverage, which means the named beneficiaries will receive a guaranteed death benefit1 as long as Brenda and Dan pay their premiums. Plus, whole life insurance can have tax benefits2 while Brenda and Dan are still living and benefit surviving children later.
The couple can borrow from the cash value in case of emergencies. The policy builds tax free to help supplement retirement income.3 It can also be in place to cover asset losses if one passes away early in retirement, and, for example, the other decides to move closer to adult children.
After Brenda and Dan have both passed, their children won’t have to pay any taxes on the death benefit and may use any proceeds to help cover probate costs or taxes from the sale of real estate.
Protection can mean different things depending on where you are in your life. As you consider your own financial situation, you may find that you align with one of these three personas or one.
unique to you. No matter your findings, you can take steps to protect what’s most important to you today and in the future by creating a comprehensive financial plan. A New York Life financial professional can help you evaluate your own needs and put the coverage in place that can give you the peace of mind you deserve today and well into the future.
1Individual health insurance is not offered by New York Life Insurance Company or its agents.
1Any guarantees are based on the claims paying ability of the issuer. The benefits of a whole life policy are dependent on making a long-term commitment to keeping the policy in force through the payment of premiums.
2Disability insurance involves qualifications and limitations. The reader should consult his or her Agent about the details of disability insurance
2Certain tax advantages are no longer applicable to a life insurance policy if too much money is put into the policy during its first seven years, or during the seven-year period after a “material change” to the policy. If the cumulative premiums paid during the applicable seven-year period at any time exceed the limits imposed under the Internal Revenue Code, the policy becomes a “Modified Endowment Contract” or MEC. An MEC is still a life insurance policy, and death benefits continue to be tax free, but anytime you take a withdrawal from an MEC (including a policy loan), the withdrawal is treated as taxable income to the extent there is gain in the policy. In addition, if you are under 59½, a penalty tax of 10% could be assessed on those amounts and upon surrender of the policy.
3Any guarantees are based on the claims paying ability of the issuer. The benefits of a whole life policy are dependent on making a long-term commitment to keeping the policy in force through the payment of premiums.
4Certain tax advantages are no longer applicable to a life insurance policy if too much money is put into the policy during its first seven years, or during the seven-year period after a “material change” to the policy. If the cumulative premiums paid during the applicable seven-year period at any time exceed the limits imposed under the Internal Revenue Code, the policy becomes a “Modified Endowment Contract” or MEC. An MEC is still a life insurance policy, and death benefits continue to be tax free, but anytime you take a withdrawal from an MEC (including a policy loan), the withdrawal is treated as taxable income to the extent there is gain in the policy. In addition, if you are under 59½, a penalty tax of 10% could be assessed on those amounts and upon surrender of the policy.
This article is provided for general informational purposes only. Neither New York Life Insurance Company, nor its agents, provides tax, legal, or accounting advice. Please consult your own tax, legal, or accounting professional before making any decisions.
SMRU #5870467 exp. 8/28/2025