Do You Need Insurance Changes In Retirement

Insurance Changes

Who doesn’t look forward to retirement and the greater freedom to choose your own schedule? Sounds great to someone who has worked for years. But with any change in life circumstances, you may need to make some insurance changes in retirement as well.

But with the tremendous changes that come with retirement come the need for changes in your spending and don’t forget – insurance. You may need more or less coverage than what you have now.

Barbara Marquand of NerdWallet suggests evaluating your needs in the following areas:

1. Ask about car insurance discounts. The fact that you are no longer commuting to work may allow for a decrease in your car insurance. Many states require companies to give discounts to drivers age 55+. Other organizations such as AARP and AAA provide discount opportunities as do completing drivers ed courses. But, if you’re planning to travel in rental cars, you may want to evaluate the amount and type of insurance you will require.
2. Contact your homeowners insurance. Because retirees are often home more, the likelihood of burglary is reduced which makes for a good reason to offer a reduction in homeowner insurance. However, if you’re planning to do a great deal of traveling, you may want to increase your spending in this area.
3. Revisit life insurance and long term care. Seems obvious, but health changes come with age. Your personal health may allow for decreases or require increases to maintain financial health.
4. Sign up for Medicare. There is a 7 month window where you are eligible to sign up for Medicare. It begins 3 months before your 65th birthday. Follow current regulations at medicare.gov.  Late enrollment may mean having to pay higher prices.

Everyone’s retirement will look different with the many factors in play. If you need assistance, please look for a reputable financial adviser in your area.

You can read the full article here.