As you journey through retirement, you may be wondering if you have enough and the right insurance coverage for your stage in life. Here are some top considerations as you think about what protection you may need for you and your family:
Long-Term Care Insurance
Personal assets that have taken years to accumulate could be quickly depleted should an individual require long-term care in a skilled nursing home facility. Most people are unaware of the actual costs associated with long-term care. According to the American Association of Retired Persons (AARP), the national average for private nursing home care is $74,000 per year. Other long term health care statistics: $206 per day for a private room in a nursing home; $185 per day for a semi-private room; $3,185 per month for a one-bedroom unit in an assisted living facility; and $60 per day for care in an adult day health care center.
Long-term care insurance (LTCI), if previously purchased, may help cover extended care expenses, including at-home, assisted living facility or nursing home care. LTCI may also help preserve assets while easing the financial and caregiving burden on family members.
Medical Insurance
Although Medicare generally begins at age 65, it does not cover extended long-term care services. It also doesn’t typically cover medical costs entirely. There are supplemental plans, Medigap and Part D coverage, that are worth considering to help fill any gaps in coverage. Keep in mind that there might be a late penalty if you decline enrollment when you first turn 65 and then decide later to enroll. Another option is to buy a Medicare Advantage Plan from a private insurer.
Homeowners or Rental Insurance
It’s important to continue your homeowner’s insurance even when you’ve paid off your mortgage. The temptation to stop coverage once mortgage lenders are no longer involved and requiring it can be costly because if you have a loss, you’ll be reaching into your savings.
Also, if you’re renting then the same rule applies that payment for a loss will be coming out of your savings rather than incoming money that you would have during your earning years.[1]
An appropriate insurance protection plan can help you and your family. By understanding the concerns that are common in retirement, you may be in a better position to anticipate future needs. You don’t have to go about this alone. Contact us for a complimentary evaluation.
