Gen X: How Insurance Has Changed Since Your First Policy header image

Gen X: How Insurance Has Changed Since Your First Policy

One thing you can be sure of: Your life never stays still for long. With all those changes, chances are good that your insurance needs have changed, too. How drastically? Let’s take a look!

Auto Insurance

Then: Back when you were just starting out, you may have just had the basics. Collision, liability — the bare minimum for what you needed to comply with state laws.

Now: You have more coverage options than ever before, and you know the basics may not be quite enough. With auto replacement cost coverage, you have more coverage in the event your new vehicle is totaled. Technology has also grown by leaps and bounds since your early days as a car owner. Usage-based technology is everywhere, and allows you to pay for how you drive, not just based on an average. Programs like Driveology® combine the science of telematics with safety. The bonus? The chance for savings!

Homeowners Insurance

Then: Homeowners? Try renters. Back in the day, you had an apartment, roommates and (hopefully) coverage for your personal property. Renters insurance is important for protecting your stuff in the event of theft or a fire.

Now: Homeowners is the name of the game! Instead of a la carte insurance, consider bundling your homeowners and auto policies for simplicity and potential savings.

In addition, you have hopefully considered umbrella coverage. Umbrella provides an extra layer of protection, and can step in where your homeowners and liability limits leave off. Not sure you need it? Here are five reasons why you should consider this valuable coverage!

Life Insurance

Then: Hopefully you weren’t among the 30 percent of people that didn’t have a life insurance policy. If you did have life insurance (it’s important! Here’s why!), you probably had a term policy. Term life insurance policies provide coverage for a specific period of time (10 years, 20 years and so on). They can be renewed once those terms are up. Permanent life insurance (such as Whole Life and Universal Life policies) can provide lifelong financial protection, as long as the policy is in force.

Now: You might have more people to depend on you now … or maybe you’re just looking for an insurance policy that can provide extra security when you’re retired. A popular move is to convert your old term life insurance policy into a permanent life insurance policy, in order to take advantage of the additional benefits a permanent life insurance policy can offer, like lifelong protection for you and your family, a policy that can build cash value, or the opportunity to purchase additional riders.

What You Need to Know About Life Insurance

Have kids? Many parents also open a small whole life policy on children that, once they reach adulthood, can be added on to, converted to a permanent policy (if purchased as a term policy), or cashed out for use on a future investment like a down payment on their first home.

Retirement Planning

Then: Hopefully, you were thinking ahead to the future! By starting in your 20s, you’re able to save that much more than if you didn’t start funding your retirement until a decade or two later. When you started looking into retirement, you probably started small, with an IRA or an employer-funded 401(k). And starting small counts! With time and the power of compound interest, even a little bit in your 20s can have a big impact in your 60s.

Now: One big advantage to having a 401(k): You can take them with you. You’ve probably switched jobs at least once; what do you do with the 401(k) from your former employer? You might want to consider rolling it over into an IRA or similarly qualified retirement account.

There are lots of choices out there. As you get closer to retirement, it’s a good idea to check in on your investment strategy from time to time. What are your goals? You’ll want to consult with your financial planner to find options that are best for your situation.

Business Insurance

Then: Maybe you were just starting out with a crazy idea for your own business, or began freelancing as a way to earn extra cash. If you had a business when you were younger, it was probably small, and you had to work twice as hard to ensure its success.

When Is It Time to Get Business Insurance?

Now: You’re still working hard, but are starting to consider next steps! If you have a thriving business, business succession — how it will be managed when you decide to retire — might be on your to-do list. You want to ensure that your business goes into the right hands and continues to grow and thrive.

Protection for All Stages of Life

Whether you’re a baby boomer, gen-Xer, millennial or generation yet to come, you can find coverage that fits your needs. Your local Farm Bureau agent can help you find a policy that will protect the things and people that matter most to you, so that whatever your generation, your world is protected.

How can I help you?