Retirement Insurance and Changing Needs

Your retirement insurance needs could be different from your insurance needs while you were working. Some coverage needs will be less, some will be much, much more.

In addition to the insurance for health care, life insurance, etc, there is another type of insurance product called annuities - see this topic below, too.

Here are some considerations as you plan for your retirement insurance needs.

Retirement Income Insurance: Annuities

Annuities are insurance products that convert savings into a lifetime income and are commonly used as part of a retirement portfolio.

Recently these products have come to be known as individual pensions because they are similar to traditional pensions which are typically setup with annuities or using formulas similar to those used for describing annuities.

Most annuities provide a guaranteed benefit or return on investment that makes them attractive to risk averse people who don't feel comfortable with the ups and downs of stock market investing.

Medical and Health Insurance

If you retire before age 65 when Medicare coverage begins, health care insurance is the most important coverage you can have. As we get older, our health needs increase too. Arthritis, high blood pressure, and other diseases can sneak up on us before we know it.

Preventive care is especially important, and can be expensive without health insurance. Also, without health insurance to help with the costs, preventive care is often sacrificed. Illnesses that might have been detected early and dealt with are often neglected until they become full-blown health problems.

When you are covered by Medicare, you may need a supplemental health care policy to help keep expenses down.

For more on this topic visit this page on individual health care plans.

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Dental and Vision Insurance

Along with health insurance, dental and vision coverage may be needed, especially for preventive care. Vision coverage is helpful if you already wear corrective eyewear.

And since vision is one of those things that declines with age, it makes sense to pay attention to regular eye exams. Glaucoma is another disease associated with aging, and can be detected early by regular exams.

Long Term Care Insurance Coverage

This one is a must-have for everyone's retirement insurance package.

Long Term Care Coverage pays for any care you may need for recovering from or due to a debilitating illness. It may cover nursing home stays, or home care when assistance with basic daily living tasks such as bathing, dressing, toileting, etc.

Typical illnesses requiring long term care would include strokes, Alzheimer’s disease, multiple sclerosis, for example. Accidents can also cause situations where nursing care is needed.

Life Insurance

Once you are retired, you may not need as much life insurance as you did before your mortgage was paid off, and while your kids were young.

You should at least have enough coverage to make sure your spouse will be able to maintain the same standard of living as when you were alive.

This could mean providing enough to pay off any loans, or make up for your lost income from whatever sources won’t continue after your death.

Disability Insurance

If you plan to work to bring in part of your living expenses during your retirement or semi-retirement, you may need to continue keeping coverage against loss of that income due to disability.

If you don’t need to work to produce an income, you should not need this type of insurance coverage.

Home and Auto Insurance

You definitely need to keep coverage for your home and car, but you may be eligible for lower auto rates if you don’t drive as much as you did when you worked.

You should discuss this with the agent where you have your car insurance.

Be sure to ask if there is any way to lower your home insurance premiums, too.

If your home and auto coverages are with different companies, find out if either company offers a multi-policy discount for moving one of the policies to that company.

Compare the total costs for the combined package before you decide which to move.

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