In the midst of all these exciting changes, you now have to make some important decisions regarding your insurance coverage. Previously, your employer made sure you had the coverage you needed but now it is falling in your lap.
I have had some clients say they were overwhelmed by the amount of information they received. They felt like the most important person on the planet. At first, they just let the mail pile up and ignored the phone calls because they didn’t want to deal with it or make the wrong choice.
Is preparing for your retirement feeling like another job?
With a new season of life at hand, old policies may no longer meet your needs. Most seniors age 65 and older are eligible for Medicare. Some retiring may have benefits offered through their job, and it can make sense to use your employer plan instead of Medicare if those benefits are better.
Medicare doesn't cover 100% of medical costs. For example, it won't pay for ongoing custodial care in a nursing home or assisted living facility, and Medicaid coverage will only kick in once someone has depleted almost all their assets. However, there are long-term care insurance options that may pay for care either in a facility or in a person's home.
For those who worry about purchasing insurance they may never need, there are hybrid life insurance/long-term care policies that will pay out a death benefit to beneficiaries if a person doesn't exhaust their coverage limits before passing away. Which will cover another need you have to fill... Life Insurance.
Homeowners and renters policies insure against the loss of property and possessions and also provide liability coverage. When is the last time you had that policy reviewed? Many people I talk to have not looked at their policy since they got it. Seniors who have valuable jewelry, art or other items may need to add a rider to their policy to fully insure these things. Mortgage lenders require homeowners to maintain coverage, but once the loan is paid off, it can be tempting to save money by canceling the policy. That could be a costly mistake since your earning years are in your past. If you have a (loss), the only other place to get money is your savings.