3 Insurance Options You Need After Retirement
Retirement can be both an exciting and scary phase of life. Exciting in a sense that you get to do the things you never had the time to do before. You develop new hobbies, new routines, and even acquire a few properties. In all this excitement and before your funds dry up, you need to settle your insurance coverage first. Times are changing and the old policies may not be enough to meet your needs. You need to consider your circumstances at the moment and your life goals, too. Do note that there’s no one solution for all. So we’ve put together some guidelines that you can follow in choosing the best policy for you after retirement.
So the first question to ask is: What is your goal towards getting insurance? Is it to replace lost income, pay off debt, leave an inheritance, or provide for a family member in the event that pension doesn’t include any beneficiaries? Right now, there are different types of policies that will offer both living and death benefits. This would cover your needs should you be diagnosed with a terminal illness or need long-term care. As such, we give you three must-have policies for seniors today.
This is one of the must-have policies of the seniors. It’s obvious why they need to maintain their health and this is where their medical insurance comes in. The rising cost of healthcare for seniors is the main reason why you need to consider this coverage. Most seniors are eligible to get Medicare and those who are still working may receive this benefit from their employers. A lot of times, the medical coverage at your workplace has better benefits so it makes sense to use that one instead. In other cases, retirees can purchase a supplemental plan such as Medigap and Part D coverage to help offset any costs not covered by Medicare.
2.Homeowners or Renters Insurance
This type of insurance will protect you against loss of property and possessions and at the same time provide liability coverage. This is most applicable to seniors who have jewelry, art, or other valuable items. Do note that you may need to add a rider to fully insure these things. Also, it would be tempting to cancel off your policy once the mortgage loan is paid off but that could be a costly mistake according to experts. You’ll have to remember that the only place you get money if you have any type of loss is your savings. So better keep this policy active.
Aside from the two mentioned earlier, there’s also another type of insurance that may also be an option after retirement, especially now that seniors are living longer. This means a person’s savings may not be enough to cover the extended retirement. This is where annuity can be helpful. An immediate annuity can secure you from using up all of your savings by providing a guaranteed source of income. An annuity can be purchased for a lump sum amount, which in turn, will provide monthly payments based on the purchase price and the person’s age. There are policies that will help retirees sustain themselves while their living, and annuity is one of them.
Bonus: The Type of Insurance to Live Without Disability Insurance
When seniors stop working, the need for disability insurance stops. If you have set up a number of policies, the more there’s no need for this one. Even if you are unable to work due to an accident or illness, you can still receive benefits from your other plans and assets.
Based on materials from US News
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