Insurance policies help protect your livelihood, loved ones, property, and those around you. As you approach retirement, buying insurance can seem like an extra expense, but they don’t need to. Some insurance remains a necessity while you’re retiring. Here are insurance policies you need to consider as you approach your retirement.
Homeowners insurance: There is no reason to drop homeowners insurance even though you have paid off your mortgage before retirement. “In fact, having homeowners insurance is essential in retirement when you’re not receiving an income from a job anymore as it helps cover the cost of repair and replacement.
Auto insurance: If you’re not driving your car to work anymore, you may get a lower rate for putting on fewer annual miles. If your car is old, you may consider dropping physical damage coverage’s of comprehensive and collision.
Umbrella insurance: An umbrella policy is worth considering if you have more assets than your standard insurance policies cover. If you’re responsible for a car accident, own a pool in your house, or have stairs, umbrella insurance coverage could help protect you against a lawsuit.
Life insurance: The primary purpose of a life insurance policy is to provide income to dependents in the event of one’s death. It pays off major debts for dependents, such as mortgages, student loans, and car loans. Whole life insurance is the best for retirees because it helps with estate planning.
Health insurance: Medicare covers some health costs for eligible retirees, but many costs aren’t covered. Please talk with your insurance agent about Medicare coverage gaps and get a policy covering additional benefits. With health insurance, you will have a few more minor things to worry about in retirement.