Today is National Insurance Day! This unique holiday is a reminder of how insurance plays an important role in offering a person peace of mind – knowing that you are financially protected in case of a loss, damage, illness or death. This couldn’t be more apt when approaching retirement. So what kinds of insurance are best for retirees?
As workers approach the retirement phase of their lives, it’s easy to think of all the exciting new opportunities that awaits, but they must consider their new insurance needs too. Here’s how to decide which policies you need after age 65.
Medicare
The increasing cost of health care that comes with advanced age is a major reason to buy medical insurance. And since the implantation of the Affordable Care Act in 2014, the law requires virtually everyone to maintain coverage.
You can sign up during a seven-month window, starting three months before your 65th birthday. Stay on top of the enrollment period. You’ll usually pay a higher price for Medicare if you enroll late.
Understanding Medicare costs can help you make a more realistic retirement budget. Learn more about Medicare in the government’s official handbook. The Medicare office is also on YouTube if you prefer to get your information that way.
Homeowners/Renters Insurance
Find out if your homeowners insurance company offers discounts to retirees. Some do, reasoning that retirees are at home more often, reducing their risk of burglary, fire and other problems, according to the Insurance Information Institute.
Planning a big remodel? Update your total coverage amount to include the improvements. It should cover the cost to rebuild your home.
If your retirement plans are focused around travel you’ll need to get an addition to the policy (endorsement) to cover the risk. Tell your insurer, too, if you plan to rent out your home through a service like Airbnb while you’re gone. You might also need special coverage in that case.
Finally, seniors who have valuable jewelry, art or other items may need to add a rider to their policy to fully insure these things.
Car Insurance
Like health insurance, car insurance is legally mandated in almost every state. Any senior who is still driving and owns a vehicle should insure it properly. There are a couple of ways you can save money on car insurance once you retire:
● Tell your car insurance agent or company you’re no longer commuting. Driving fewer miles may reduce your car insurance rates.
● Take a defensive driving course. Most states and the District of Columbia require car insurers to give discounted rates to older adults, usually ages 55 and up, who complete these classes. AARP and AAA are among the groups that offer the courses, many of which are available online for less than $20.
Life Insurance
If your kids are grown up, your house is paid off, and you have enough retirement savings to support you and your spouse, you might not need life insurance. But there are a few reasons why getting life insurance quotes and buying a policy as you near retirement might be a smart decision.
Although the main purpose of life insurance is to replace lost income, retirees may want to keep their coverage 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.
Umbrella Insurance
If you carry umbrella insurance in your home state, the policy will extend to cover the underlying policies, no matter where you are. However, it will not apply for homes and cars purchased, registered, and insured out of state. You don’t need to be affluent to find these policies beneficial. They’re for anyone who feels that roughly $250 a year will help you sleep better.
Final Thoughts
Retiring is certainly one of the bigger milestones in life, but your need for insurance typically doesn’t go away in retirement; You still need to protect your health, home, vehicles, liability and life.
In today′s world, the importance of a well-executed retirement plan cannot be underestimated. To create your own personalized Retirement Income Plan, contact us at CKS Summit Group by calling 586-286-5820 or click here to set up your complimentary strategy session today. We look forward to working with you to bring you fresh new ideas for your retirement income.