+3

Insurance Considerations in Retirement

By bhushanpandye

 

If you're staying put in retirement, your homeowner's or renter's insurance will be unaffected. However, if you're moving, you'll need to transfer this policy to your new home. In all likelihood, your current insurer will be able to simply transfer your policy, once you provide exact dates of your move, although if you continue to own your old home, you'll still need to keep it covered. And don't forget about insuring your personal belongings during the move itself. The moving company should provide some coverage, but estimate the value of your belongings and purchase a separate policy if the mover's coverage is insufficient. If you have any particularly valuable pieces -- antique furniture, jewelry, artwork, oriental carpets -- then consider a personal articles floater policy, which insures these items separately and ensures that you will get full value back in case of loss.

 

Health insurance is a complex issue that deserves careful attention. If your company provides health insurance to retirees and their families, then you're in luck; consult with your company's human resources department to make any adjustments as necessary. In the United States, Medicare -- federally managed health insurance coverage for the elderly -- does not kick in until you turn 65. If you retire earlier than that and your company does not offer retiree health benefits, you'll need to fill in the gap with additional health insurance. COBRA is a special program that allows newly retired persons to continue coverage under their former employer's group health plan, usually for 18 months, although this can be extended for an additional period of time under certain circumstances. Under COBRA, beneficiaries are responsible for paying full premiums -- your former employer is not obligated to continue contributing. And if your COBRA coverage expires before you turn 65, you'll need to find interim health insurance on the private market.

One special kind of policy you might consider is long-term care insurance, which will cover nursing home and home health care expenses. These policies are complex, and they can be expensive if you purchase a policy later in life. (If you purchase a policy when you're still in your fifties, it will be cheaper, but of course you'll be paying premiums for a longer period of time.) One of the most important considerations in purchasing a long-term care policy is the stability of the insurer. These policies are relatively new in the market, and some insurance companies are finding it difficult making them financially feasible as payouts increase over the years. Some companies have stopped selling long-term care policies altogether. Do your research.

Life insurance is another broad area that you'll need to consider. There are two basic kinds of life insurance: if you purchase "term insurance," you will pay premiums and, in the event of your death, the company will make a single payout to your beneficiary. "Permanent life insurance" policies (which include "whole life," "universal life," and other variations) maintain a cash value as well as a death benefit component. These latter policies are primarily investment vehicles with high fees and complex structures; be sure you understand exactly what you're buying. Most financial advisers suggest that there are more effective ways to invest your money rather than through a whole life or universal life policy, and that to obtain life insurance coverage, purchasing a term policy is a better choice.

Life insurance is another broad area that you'll need to consider. There are two basic kinds of life insurance: if you purchase "term insurance," you will pay premiums and, in the event of your death, the company will make a single payout to your beneficiary. "Permanent life insurance" policies (which include "whole life," "universal life," and other variations) maintain a cash value as well as a death benefit component. These latter policies are primarily investment vehicles with high fees and complex structures; be sure you understand exactly what you're buying. Most financial advisers suggest that there are more effective ways to invest your money rather than through a whole life or universal life policy, and that to obtain life insurance coverage, purchasing a term policy is a better choice.

Retirement Plans is intended to replace lost income in the event of death. If you work and your spouse or partner does not, then you need life insurance coverage to ensure income for your spouse in the event of your death, but your spouse most likely does not need life insurance. Once you retire, you may or may not need to keep your policy active. If you and your spouse will be living on investments that you jointly own, these investments will continue to generate income for your spouse if you die, and your term policy may not be necessary. However, if you earn a pension and the payout amounts to your surviving spouse will be reduced if you die, then a term policy can help your spouse cope with the reduced income. And if you anticipate any large expenses on your death -- such as estate taxes on any property or business that you own that will pass on to heirs -- than a term policy can be designed to pay off those expenses.is intended to replace lost income in the event of death. If you work and your spouse or partner does not, then you need life insurance coverage to ensure income for your spouse in the event of your death, but your spouse most likely does not need life insurance. Once you retire, you may or may not need to keep your policy active. If you and your spouse will be living on investments that you jointly own, these investments will continue to generate income for your spouse if you die, and your term policy may not be necessary. However, if you earn a pension and the payout amounts to your surviving spouse will be reduced if you die, then a term policy can help your spouse cope with the reduced income. And if you anticipate any large expenses on your death -- such as estate taxes on any property or business that you own that will pass on to heirs -- than a term policy can be designed to pay off those expenses.

If your situation is complex, it may be worth it to consult with a financial advisor to determine the best course of action. But don't put off making decisions about your insurance policies.

 

Source:- http://bit.ly/2t1LiQ7

+3
Author's Score 0.2
Up Votes
1
Down Votes
0
Articles
0
Voted on
1 articles
For everything fun and local, you can find it on Fonolive
Tags:
, ,

Recent Articles

Cryptocurrency Guides How does Bitcoin work? What is Ethereum about? What makes EOS protocol special? How can you...
Mirae Asset Mutual Fund was established in 1997 in Korea. With an applausable performance by providing the...
Contract for Difference or well-known as CFD is a derivative product that allows people to trade based on the...
Cryptocurrency presents an opportunity to earn significantly more. If you are thinking about investing and have...
  Warren Buffet's annual letter to Berkshire Hathaway shareholders is eagerly awaited and very carefully...


Copyrights © 2016 Voticle. All Rights Reserved.