WE have all heard it: life is a journey.

Have you wondered whether they meant that journey was by car, train or bullock cart?

We put some thought to it, and decided they meant car journey (given that we spend half our lives commuting in it!).

Here's a situation to consider: what if, in the middle of your drive, you face a puncture. And you discover, to your consternation, that the spare tyre (endearingly called stepney!), in your car is a leftover from the last puncture, not a new one!

Insurance is a lot like that. It ought to go into overdrive when calamity strikes. Calamities could come in the form of a health risk, death or financial loss. And what else but insurance to provide relief to you and your family members after you?

But then again, insurance is not like that famous bike commercial, 'fill it, shut it, forget it'! You need to let your insurance evolve with you at every stage of life.

We chalked out a plan just for you through four life stages.

Stage I: Single and ready to mingle
You have youth on your side, and your life is in no danger.

If, unfortunately, something does go wrong, it may not mean financial hardship for anyone, since you don't have dependents yet.

Technically, you don't need life insurance. But we recommend it because the rates are low.

Surely, as you grow older and more mired in responsibility, it only makes sense to start early. A little financial support for your parents also never hurts.

Stage II: The DINKs!
The Double Income No Kids (DINKs) couples have taken over the metros today.

Are you one of the DINKs? Then you may need little or no life insurance, especially if both of you contribute to the household income.

But death or financial loss of one could change your lifestyle. The survivor may not be able to afford the rent, which earlier would have been paid off without batting an eyelid. There maybe debts to be repaid as well.

That is why it makes sense for each of you to buy a substantial amount of life insurance to protect one other.

Stage III: Here come the kids!
The birth of a child could mean your wife staying at home to take care of the baby.

This could make you a single income family with young children: the classic high-need situation.

Your responsibilities at this stage are only increasing, with your ageing parents. Your new best friend is (who else?) insurance!

Insure your wife and your child's life heavily. A non-earning spouse plays an important role in caring for your child who could be in daycare under any unfortunate circumstance. Daycare is expensive.

This high-need situation applies for dual-income households with children; for single parents; and for anyone caring for elderly parents who have limited resources of their own.

Stage IV: The empty nest
The kids have grown and have flown the coop. You want to live life independently and with dignity.

You now need a pension plan and assets that can generate good income. With suitable retirement planning (which, hopefully, you will start early in life), you will be able provide for the remainder of your life, just the way you want it.

Now, here is one small, but significant, difference between that stepney and your insurance. If you forget to change your stepney, you can hitch a free ride in someone else's car.

But if you don't update your insurance, there are no free car rides in the journey of life. So, hmm, oil it, for a smooth ride!

Photograph: Vladimir Rys/Getty Images 

Disclaimer: While we have made efforts to ensure the accuracy of our content (consisting of articles and information), neither this website nor the author shall be held responsible for any losses/ incidents suffered by people accessing, using or is supplied with the content.