Retirement planning articles dole out cost-of-living calculators, investment vehicle analyses and discussions of appropriate asset allocation and tax considerations. But they rarely seem to talk about the role of insurance beyond Medicare supplemental plans and long-term care insurance. After all, it’s not as if retirees suddenly stop needing insurance. And once you leave your job, you might need to replace coverage from your former employer with policies you obtain on your own.
Your insurance needs can change across many facets of your life when you retire. Here are some areas of risk you may need to reevaluate when it comes to your insurance after you’ve left the workforce.
Downsizing to a smaller home, condo or retirement community means reconsidering insurance value. But a renovation or addition to your current space might raise the total amount you need to insure. Or perhaps you’ll purchase or rent a summer home and become a snow bird. Any of these changes will require a thorough reevaluation of your insurance coverage.
New Driving Habits
Will your household’s fleet drop to a single vehicle now that you won’t need to commute to work anymore? Or maybe you’re moving to a golf-cart community? Even if you keep two cars, you may be able to lower your premiums if you’re not putting as much mileage on them. Additionally, the state you live in may offer a discount to older drivers who complete a defensive driving course. Your local We Insure agent can help you determine any changes you need to make on your auto coverage in retirement.
The Retirement Lifestyle
Will you become an RV road warrior traversing the country in search of fun and sun? Is it time to get that boat you always wanted? Then it’s also time to reevaluate your insurance needs. Even leaving your home unoccupied for many months during the year could impact your insurance, so be sure to have a wide-ranging discussion with your knowledgeable We Insure agent today.
If you’re just entering retirement, you hopefully have a sizeable nest egg. But what could happen if you’re the target of a lawsuit? If your prime earning years are in the rearview mirror, it becomes all the more important to protect the assets you need to live off for the rest of your life. And that’s where an affordable umbrella policy comes in. This type of insurance often picks up where your auto and homeowners policies leave off, adding an extra layer of protection when you might need it most.
The Good Life
The need for life insurance could go either way in retirement. If your home mortgage is paid off and your spouse and dependents are financially secure without you, you may not need as much coverage. On the other hand, if family members who depend on you would struggle to support themselves or to pay for final expenses, then life insurance can provide much-needed assistance during a difficult time. Insurance can also help with estate taxes. And with more and more blended families and multiple marriages, many seniors still have younger children or grandchildren they need to provide for — all potentially good reasons to keep or add life insurance coverage.
A Well-planned Third Act
As your look forward to a well-earned retirement, consider your insurance needs and the impact they can have on your overall budget. Contact a friendly and knowledgeable We Insure agent to protect what matters most during your golden years.
The information contained in this page is provided for general informational purposes only and may not be applicable to all situations. We Insure makes no guarantees of results from the use of this information.