This Friday (June 28) is Insurance Awareness Day. Consider finding out more about what types of insurance will help protect your health and wealth as you head into retirement.
Everything changes in retirement; from your hobbies to your daily routine, and even your insurance coverage options. Here’s how to decide which policies you need after age 65.
Medical Insurance
The increasing cost of health care that comes with advanced age is a major reason to buy medical insurance. Health insurance premiums can chew up a considerable chunk of post-retirement income. Most seniors age 65 and older are eligible for Medicare but if you retire before you’re 65 and lose your job-based health plan when you do, you can use the Health Insurance Marketplace to buy a plan.
When you fill out a Marketplace application, you’ll find out if you qualify for a private plan with premium tax credits and lower out-of-pocket costs. This will depend on your income and household size. You’ll also find out if you qualify for free or low-cost coverage through the Medicaid program in your state.
Car Insurance
Car insurance rates increase in your senior citizens years. Data from the National Transportation and Safety Bureau (NTSB) and National Automotive Sampling System (NASS) show that drivers 70 and up experience much higher rates of intersection-related accidents and fatalities than younger drivers.
The cheapest auto insurance for seniors depends on the driver, vehicle and location. There are plenty of discounts available to older drivers, and you should pursue all that apply to you.
It’s also worth noting that some state motor vehicle departments treat you differently once you meet their definition of “older driver.” You may no longer be allowed to renew your license by phone or online for example.
Here is information from the Governors Highway Safety Association about the differences by state.
Home Insurance
As you approach retirement, home insurance may not be something you often think about, but not having enough coverage could have devastating consequences. Whether you’re a homeowner, condo owner, or renter, home insurance is an essential way to protect you and your belongings from fire, theft, or other damage.
There are many advantages for seniors who belong to the American Association of Retired Persons, or AARP. Among those advantages are things such as guaranteed acceptance life and health insurance, discounts on many different lines of coverage, and the availability of group insurance through membership in AARP. Find out more here.
Life Insurance
Now you’re at retirement age, your employer isn’t paying for life insurance anymore, and you have to decide whether to take out a new policy or enter your later years without one. What’s the right choice? Although the main purpose of life insurance is to replace lost income, retirees may want to keep their coverage, especially to protect family members from the loss of income if you or another primary wage earner were to pass away.
Life insurance can be used to pay off debt, leave an inheritance or provide for a spouse in the event a pension doesn’t include survivors benefits. What’s more, policies may offer living benefits that can be used in the event of a terminal illness or the need for long-term care.
Your Retirement Plan
With so much to consider while making the transition to your golden years, it can be overwhelming on where to start.
CKS Summit Group is a retirement income planning firm with a strong focus on bringing you cutting edge tactical portfolios that help our clients achieve safe, healthy growth of their savings and preservation of their principal balance.
We design plans which are specifically structured to limit downside stock market risk. This allows us to protect our client’s assets while providing them with strategies for achieving effective tax reduction and inflation protection. Come and experience the new evolution of retirement planning this National Insurance Day with CKS Summit Group. Set up your complimentary strategy sessions with us here today.
