Retirement is supposed to be one of the most carefree parts of life. You’ve worked hard, and now you should be allowed to enjoy the fruits of your labors. While ideally that is the case, you still need to make sure you’re protected. Insurance plays an important role in protecting yourself, your loved ones, and your assets. So how do you make sure you have enough?
Consider Your Finances
Your financial situation will play a significant role in the insurance you carry. Many retirees operate on a fixed income, so it’s important to make sure that your insurance premiums don’t break your budget. Aside from the actual cost of the insurance, consider other aspects of your finances. If you were to die soon, what financial situation would you be leaving your spouse in? Weigh the pros and cons of carrying life insurance into your retirement and decide if that’s a good option for you.
Consider Health Needs
Retirement often coincides with becoming eligible for enrolling in Medicare. Medicare health insurance isn’t a one size fits all sort of coverage, so consider your health needs when deciding what you want your insurance plan to cover. Different parts of Medicare cover different expenses, so it’s important to understand them when making your decisions. If you use prescription drugs, you’ll want to make sure you have the right coverage to help cover those costs. One way to ensure you get prescription drug coverage in retirement is with a MAPD plan.
Protecting Your Belongings
Once you’ve paid off your mortgage, it can be tempting to drop the homeowners insurance to save some money. That may not be the best idea though. Homeowners insurance is still important, considering that your best earning years are behind you. If something happens, a good homeowners insurance policy can protect you from financial disaster. If you have more expensive belongings, such as jewelry, art, or other valuables, you may need to look into additional coverage. Adding an insurance rider or floater will cost you more in monthly premiums, but the extra coverage can be invaluable, should you need to use it.
Having enough insurance is at least as important in retirement as it is at any other time of your life. When deciding how much insurance you need and what types, consider your financial situation and health needs, and take steps to protect your belongings. If you end up needing to take advantage of the coverage offered by your policies, you’ll be glad you have them.
If you are planning for your retirement, let us help you!
