Article by ric dalberri
We all know that we could during our lifetime, become cash poor and insurance rich. So, now, during the ‘golden years’ of retirement,do I still need insurance in retirement? The answer is basically, yes and no. What I mean is, which type of insurance do I still needin retirement. Here are different types of insurances that you usually have in your personal (not mentioning if you are self employed for business insurances) portfolio:
2) Health, dental, vision
3) Automobile, R.V., motorcycle, boat, etc.
4) Homeowners, flood
6) Long term care
So, you should now understand why I said yes and no to needing insurance. Let’s start and go through the list.
1) Life insurance. The purpose of life insurance is to fill the gap of financial loss, hardship, pay some debt and burial funds for those left behind. If the answer is no to the purpose listed here then, you don’t need life insurance. You may, however, want a charity to benefit or help a family member in need. The amount of life insurance depends upon the amount of money the individuals you leave behind will need not to experience a financial loss. You have to calculate your liabilities. Consult with an insurance specialist as to the various insurance policies available to you. If you now own an insurance policy, you may consider having the cash value pay your premiums or sell the policy (called viaticles) and set aside some for burial and blow the rest.
2) Health, dental, vision insurance. Do I still need insurance in retirement? For this, yes. If you leave your employee, there may be an option to continue your health insurance. Many municipalities and unions will allow this. You may consider to continue with Cobra for 18 months until you decide what you will do until you go for Medicare. Remember, even if you don’t want Medicare at 65 yrs of age, you still need to inform them that you decline because of other coverage. If you don’t and at a later date, apply for Medicare, you will be penalized and pay a higher premium. You may also need a supplement to this.
3) Do I still need insurance in retirement for auto, R.V., motorcycle, boat? Only you can decide this. For the most part, if you own any of these in this category, the answer is yes. You decide how much.
4) Homeowners insurance is a must. Some policies will cover you away from the home. Even if you don’t live in a flood zone, you may want to consider flood insurance these days. Just watch the news and weather channel.
5) Disability insurance. You probably have had this at your work, even if you did clerical duties and not being a laborer. You probably don’t need his in retirement, unless you are very active. Only you can decide.
6) Do I still need insurance in retirement? Long term care should be a definite. The earlier you start (age wise) the less expensive your premium will be. Check out the cost of medical care in and away from the home. It could be a very expensive premium. Can you afford not to have this?
7) Pet insurance is a personal choice. If you own a pet, you know how expensive vet bills can be. Can you afford this in retirement?
8) Travel insurance. When you decide to travel, you can take travel insurance for the trip you are considering. It can be covered for different reasons from cancellation, weather, medical. Some foreign countries will not accept our (U.S.) medical coverage. This probably is a yes when traveling.
About the Author
Ric Dalberri is a graduate of Columbia State University & has been involved in his own business (sold) employing over 100 people. As well as being a top producer as a Financial Specialist for over a decade with one of the largest financial institutions in the U.S., Ric has many years experience in sales and management. Ric was also a mentor in the financial arena as well as a volunteer teacher for Junior Achievement.