Broker Check

Empty Nesters and Retirees: A Comprehensive Insurance Needs Assessment

May 09, 2023

As you prepare for retirement, it is important to create a comprehensive insurance strategy to protect your assets, health, and legacy. Home, health, disability, life, and extended care insurance are all important considerations that will help you prepare for the future.

Home: Even if you have paid off your mortgage, it’s important to review and update your homeowners insurance policy. This is especially important if the cost of replacing your home and its contents has increased since you purchased the policy. Additionally, an umbrella policy can help protect against the financial risk of personal liability.

Health: If you are retiring before age 65 when Medicare coverage begins, you will need coverage to bridge that gap. You may be able to get yourself added to your spouse’s plan, or you may purchase coverage through a private insurer or through HealthCare.gov. Once you enroll in Medicare, you should consider buying Part D of Medicare and Medigap insurance to pay for medical expenses not covered by Medicare.

Disability: If you are no longer working, you should consider canceling your disability insurance as it is no longer necessary.

Life: Your life insurance needs may have changed since you have stopped raising a family. Now is the time to consider your estate and legacy objectives and whether life insurance is necessary to meet those goals. When purchasing a policy, there are several factors to consider, including age, health, amount of coverage, and the policy’s expenses.

Extended Care: Extended care insurance is important for covering chronic or long-lasting illnesses and regular care, which are not covered by Medicare. This coverage can help protect you from the most significant health care expenses you are likely to face in retirement.

The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation.