Insurance as you head into retirement

When we think about retirement, we think about travel and leisure, grandkids and outings.

We do not think much about insurance but it’s still something to consider. There are some policies that you won’t need anymore, but what should you keep?

Medical insurance

Medical insurance is a must-have regardless of your age or situation. If you are over the age of 65 you should be able to get on Medicare. If you retire before the age of 65, but close to it, you may want to pay to stay on the policy you had through your job if possible. However, even if you are eligible for Medicare, you need to make certain it is the right choice for your circumstances.

Homeowner’s or renter’s insurance

The difficulty of replacing your home and/or possessions as a retiree makes this policy particularly important. The price of replacing a lifetime’s worth of possessions or property on a fixed income will be enough to force most people out of retirement.

Car insurance

If you drive, you will need at least a minimal car insurance policy. As your reflexes dull with age, you are at a greater risk of getting into an accident, so you may want to carry more than the minimum amount of coverage to protect yourself.

Annuity

As lifespans increase, many seniors are living long enough that their retirement savings run out well before the end of their lives but long after they can feasibly go back to work. An annuity policy ensures that there will be a source of income even if your retirement savings run out, allowing you to provide for yourself.

Life insurance

Because life insurance is meant to replace your income, it may seem unnecessary after retirement. However, everyone should have a policy that is at least enough to cover funeral costs. Many people also use their life insurance payout as a way to help their family when they are gone. If you want to leave something extra to your loved ones, keep your life insurance policy.

These policies will cover most individuals during retirement. Speak with an experienced insurance broker to learn more about the specific options available to you.