Planning for Retirement Insurance Needs

Published on Mar 23, 2015 11:30 am

For many of us, retirement seems like a far-off wonderful vacation that we’ll eventually embark on. But it’s not just a few weeks to think about or plan for, it’s a major life era where we’ll sit on porch swings, travel to those places we haven’t yet seen, and savor the rest and relaxation we deserve. Enjoying the achievements that your golden years allow you to celebrate is an amazing reward. But it’s only one part of your life after you leave the workforce. As Americans are living longer than ever before, there are more years to plan for and other complications to evaluate as you prepare to eventually enjoy your life away from the office.

For instance, will you still need insurance at that stage in your life? Many insurance pros say “yes.”

Especially for those of advanced age, health insurance is critical. Senior medical expenses can quickly escalate to breathtaking heights at rack rates with no (or insufficient) medical insurance coverage. Medicare often cannot cover all comprehensive health care expenses, and just one unpaid medical bill can trigger an avalanche of financial issues to address. Resultantly, it’s increasingly true that seniors require supplemental health insurance coverage to fill gaps between Medicare coverage and total remaining medical expenses. According to CNN Money, rising health insurance costs have prompted more big companies to stop offering retiree health benefits – the percentage has shrunk from 66 percent to about 35 in the past 20 years.

If you’re a senior who still gets behind the wheel, auto insurance will remain essential. However, strong credit can benefit you: auto insurance rates are sometimes determined by your credit, so if you have good credit, it may help lessen the cost of auto insurance premiums. Unfortunately for more aged drivers, the rate of serious accident incident is statistically elevated, so insurance providers adjust rates accordingly even if your driving record remains spotless and without specific incident.

Another type of insurance you´ll need in retirement is long-term care insurance. The possibility of needing nursing home care is a sobering reality of growing older, especially for the medically infirm. Long-term care insurance can help cover nursing home costs for you and a spouse, which are not otherwise covered by all medical policies.

Finally, don´t cancel or cash in your life insurance coverage just because you´ve retired. You may think your life insurance needs are less since you´re no longer raising a family or paying a mortgage. If, however, you were the primary breadwinner for your family and your monthly Social Security check is greater than your spouse´s allotment, you may want to continue life insurance coverage. Life insurance can help take care of a dependent spouse who outlives you, provide an inheritance for beneficiary survivors, and even help defray the costs of your funeral – most often an unnecessarily significant expense of its own.

Leaving the work force doesn´t mean leaving behind all your financial cares. Fortunately, insurance can help you and your loved ones remain financially secure and add peace of mind throughout your retirement, even as conditions change.

This article is provided for general guidance and information. It is not intended as, nor should it be construed to be, legal, financial or other professional advice. Please consult with your attorney or financial advisor to discuss any legal or financial issues involved with credit decisions.

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