After you retire, you need to make some major changes to your life, apart from the obvious ones. After you stop working for good, you’re likely to find yourself with new pastimes, new spending habits, new routines and perhaps even a new home. As a result, you need to remember that your insurance coverage is probably becoming less and less adequate, so you may need to update or change your insurance policies in order to reflect your new retired life.
Financial planner Benjamin Sullivan recommends that seniors shouldn’t rush to cancel their insurance, but should have a serious think about their future and insurability. He explains:
“There isn’t a one-size-fits-all answer. The standard wisdom might be the exact opposite of what’s best for the specific individual.”
There are lots of ways your insurance policies could change after you retire, but here are some very important ones to think about!
As retirees age, it’s obvious that they need some decent medical insurance. Older people tend to require more medical treatments and drugs, meaning that their medical bills will soon pile up if they don’t have a good health insurance plan in place. Also, according to the ACA, basically every US citizen must have health insurance or face potentially devastating fines.
Luckily, most senior citizens who are 65 or older are eligible for Medicare coverage, while those who are still employed may have similar benefits through their employer’s employee health plan. Although it’s good that Medicare exists, it can be better to stick with your private health insurance plan, so be sure to bear this in mind and draw some comparisons.
If you don’t want to apply for Medicare when you reach 65 because you have a private policy in place, be sure to inform the authorities that you will be waiving your right to Medicare. If you forget, you could face a fine for “late enrollment” despite not having plans to enroll in it at all!
Renters or homeowners insurance
Renters or homeowners insurance protects your possessions within your home and also gives you liability coverage too. If you’ve bought some new items in your retirement, such as expensive jewelry, it may be worth taking another look at your renters or homeowners insurance.
As you get older, you may find that your auto insurance premiums rise due to things such as eyesight problems or hearing problems. If this is the case, it may be wise to worth with an insurance broker who can get you a competitive deal for your age.
Need help with new insurance policies after retiring? Get in touch with our team today!