Life Insurance for Seniors – How Important is It?

There are all sorts of expenses to consider as you enter retirement. After having a steady paycheck for decades, you will have to live on a fixed – and reduced – income when you finally separate from the workplace. For many, understanding which expenses are necessary and which ones can be set aside is a tough decision. Whether it’s cable TV or retirement insurance for seniors, “How important is it, really?” will get asked a lot as your final day on the job nears. Some retirees will come to the end of term or whole life policies right before or just after leaving work behind. Though coming up with the answers can be a challenge, there are a few things to consider in order to make your final determination:

What is paid off?

The security provided by your life insurance policy is generally tied to those assets which will put the greatest burden on your family in the event of your passing. In most cases, this means a mortgage or car payments – do you have balances on loans like those? If so, having some coverage lined up is probably a good idea. Otherwise, you might be able to get by without it.

Who is counting on me?

To many, the idea of setting up a monetary protection for loved ones remains an attractive proposition. This goes far beyond paying off any debts you and your spouse might have, it allows you to put loved ones on solid ground for years or ensure your grandchildren will be able to attend college – both of which are admirable goals. Though it will require necessary notation in your will, having family or a favorite charity as beneficiaries will give you a tangible legacy beyond the affect you have on their lives as a person.

Are there financial incentives?

It may sound like an odd question, but some whole life insurance plans are structured to act as an annuity. This cash value, which accrues over time, can be drawn on or borrowed against in the event of medical emergencies or unforeseen home repairs. Some couples use these as an additional form of retirement planning beyond the stock market. If you are looking for a more stable investment as part of your portfolio, this might be one way to achieve that.

Can I afford it?

Ultimately, this may be the most important question you have to answer, but it’s last for a reason. As you consider cutting costs in order to fit your new, career-free lifestyle, the amount of money you have on hand from month-to-month can be a powerful motivator to just slash what seems unnecessary. With life insurance, however, you lose track of how crucial it is until you actually have to use it. This is why it’s important to look at cost last. Sit down with your accountant or financial planner and go over your options. A trusted professional will have insights into your goals, as well as how to make everything mesh together to the greatest benefit of you and your family.

4 Types of Retirement Insurance You Want to Have

As you near your last of work , you will face a ton of questions about what is important for the future. With a fixed income, prioritizing your spending and cutting unnecessary expenses is a natural part of the transition into your golden years. It’s relatively easy to decide on fewer cable channels or go out for dinner less, but what about something like insurance policies? Having coverage for your health and assets is important, which creates a dilemma surrounding what absolutely must be protected and what can do without. Selling a car so there’s only one to insure will result in savings, of course, but what else? Regardless of what’s on your table, here are four types of retirement insurance you want to have:
1. Health Insurance
Medicare is the primary source of healthcare coverage for retirees, obviously, but there are significant differences between the services included in your employer health plan and what is offered by the federal government. Things like prescription drugs and outpatient services can leave the individual paying a hefty portion of the fees, so scout out the best plan to fill in the gaps and help you avoid a big hit.
2. Home Insurance
If you’re like most people, your home is your primary asset. Even in the most volatile markets, property is among the safest investments a person can make. Being robbed of treasured memories due to a catastrophe would be hard enough, but it can be financially devastating, too. Before you move into retirement, be certain your policy offers the protection you need at an affordable rate.
3. Life Insurance
Chances are good you already have a policy to ensure your family is provided for, so you won’t need to purchase a new plan. What you might consider, if you decide to keep coverage in place, is the amount of protection you have. If your outgoing expenses are relatively minimal – the mortgage and cars are paid off, for example – you might be able to decrease the pay out and still take care of your loved ones.
4. Travel Insurance
With all your newfound free time, you might be planning to drive around the country or fly all over the world. There’s a lot you might encounter along the way, so it’s smart to make sure you are prepared in case of an emergency. What happens if you have a serious accident while driving around Italy? How will you pay for an extended hospital stay? Secure a traveler’s policy before you leave and cover all the angles.
So, retirement planning is must for you, if you have not yet started its still not late.