How Do Your Insurance Needs Change in Retirement?

Written By Charlotte Insurance on March 5, 2019. It has 0 comments.

a sign with the word retirement on it

Any time you have a major life change, and retirement certainly counts, you should review existing coverage to make sure it’s still a good fit for you. You’ll also want to consider what kind of insurance coverage you need now that you didn’t need before.

Retirement is a new phase in your life, one you should be able to enjoy as much as possible. Don’t let a lack of insurance coverage or too-high premiums make it a burden. Here’s what you need to know about insurance after retirement.

Review Your Basic Insurance Coverage

It might not seem necessary to check your home, auto, and life insurance coverage when you retire, but it’s a good time for a quick review. You may be driving less, so your auto rates could decrease. You may want to lower or increase your deductibles based on what you can afford for out-of-pocket expenses. Life insurance limits may need to be raised or lowered, based on your current financial responsibilities.

Now that you’re retired, you want to have the most amount of insurance you can afford. You also want to be mindful of deductibles and what your policies cover and what they don’t. A lot of retirees live on a fixed income and insurance costs feel like an easy expense to get rid of. That will only cost you more in the long-run. It’s much better to find a new policy at a lower price to meet your budget needs.

Health Insurance

The biggest change you’ll experience will likely be health insurance, especially if you’ve been insured through an employer. You can continue your old coverage for up to 18 months with COBRA, but you’ll pay more than you did when you worked. If you retired early and aren’t eligible for Medicare yet, you can purchase your own individual health insurance policy. You may qualify for a subsidy based on your income which can drastically reduce your monthly premium.

If you’re retiring at the age when you can take advantage of Medicare and Social Security, here’s what you need to know about Medicare:

  • Medicare Part A has no premium and covers inpatient hospital care only.
  • Medicare Part B charges a premium and covers doctor visits, lab work, and more, but it doesn’t cover everything.
  • You can supplement your Medicare coverage with a Medigap plan, and you can purchase coverage through a local insurance agent.

Long Term Care Insurance

You may have heard of long term care insurance before you retired, but it’s likely you ignored it as something unnecessary. Now that you’re retired, it’s time to face facts. The older we get, the more likely we are to need long term care, especially over the age of 65. Don’t count on Medicare because its coverage is very limited. Long term care paid out of pocket is very expensive and time-consuming.

Relying on your family to take care of you may not be an option or you may not want to burden them with the responsibility. Long term care insurance is a great solution. Depending on the policy you choose, different services can be covered including home care, assisted living facilities, and nursing homes. Buy a policy as soon as you’re able to so that you can get the least expensive premium possible. The older you are when you purchase it, the more you’ll pay.

Are you close to retirement or newly retired? Contact Charlotte Insurance today and let us help you review your current and future insurance needs.

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