1. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    Retirement doesn’t change the nature of many risks faced by an individual. If you operate an automobile you will want sufficient insurance to meet any anticipated loss. It is important to remember that when you experience an uncovered loss and are retired the money to cover that loss will come from your retirement savings in most situations. Be sure to carry the highest possible liability limits. Consider an umbrella policy.

    If you own a home you will want sufficient insurance to protect valuable assets against loss. This is also a good time to increase the limit of liability insurance because a lawsuit could ruin your retirement plans. As people age they tend to acquire inherited property. That property needs to be reviewed and insured as appropriate.

    There are few of us that actually outgrow our need for life insurance. Our death is going to have a financial impact on those we love. To that extent consider permanent insurance. Single premium life insurance can play a particularly helpful role in paying final expenses but also can be used to establish bequests. Many retirees carefully protect their savings so they can pass something to their heirs. It might be beneficial to establish those gifts through life insurance and thus be able to spend freely the money that remains.

    Life insurance is also needed if the death of one spouse will have a serious impact on the retirement income of the survivor. Sometimes it is appropriate to select a life income option on a pension plan or annuity and then purchase life insurance to make up the loss of survivor benefit.

    Many retirees are concerned about charities and life insurance is a wonderful way to handle those interests as well.

    The most ominous issue for most retirees is long term care. Studies show that these expenses are one of the top concerns among retirees. With the increase in longevity comes an increased possibility of having a long term care need. Considering long term care insurance in a retirement budget is important. Health tends to decline, not improve with age.

    One option available is to take advantage of the Health Savings Accounts typically offered by employers who are enrolled in their companies’ high deductible plans. This tax incentive allows the individuals to contribute with pre-tax dollars and enjoy the gain on investments held in the account tax-free.

    Employers are often linking the HSA to the retirement program which helps employees understand that they can use the account to accumulate money for their medical needs in retirement. Some people will accumulate a substantial amount. Since these funds are not subject to required minimum distributions at seventy and a half they can continue to increase in value until needed.

    Because Medicare doesn’t provide complete medical coverage most retirees purchase a Medigap supplemental insurance policy from a private insurance company. State administrators are involved in the coverage that these policies provide and sometimes in their pricing.

    Another form of insurance available to seniors is longevity insurance. This is effectively a deferred income annuity which isn’t means tested until age 85.

    Traditional Long term care insurance should not be overlooked. While the cost is subject to a great deal of debate the alternative is to assume the risk personally. Hybrid life and annuity policies can provide long term care coverage under certain conditions.

    In retirement expenses continue and retirees are often called upon to select between their own needs and the wants and desires of heirs. Anything that can be done to fence off expenses can make difficult decisions easier.
    Answered on February 14, 2015
  2. 947 POINTS
    Jose S Sanchez JrPRO
    President, The Insurance Advisor, Burr Ridge, IL
    When you’re asking “what insurance do you need when you retire”, we need to know if you’re asking about Health Insurance or are you talking about protecting your family from loss. If your question pertains to your health insurance because most of us loose that when we retire then you have two options. You can look at either a Medicare Supplement, which works similar to car insurance and what I mean by that is you can buy a plan with no deductible and pay a higher premium, that will cover all of your doctor and hospital expenses or you can assume part of the risk and pay a lower monthly premium with a deductible or co-pay and it will still cover your doctor and hospital expenses. Medicare Supplement will run you anywhere from $155 to $200 per month so around 2-3 thousand dollar per year to see your doctor 4 to 5 times a year. Some people like this option because their monthly cost is set even when they have a bad health year.
    The other option you have is to look at a Medicare Advantage plan if it’s available in your area. Most plans have either low or no monthly premium and small co-pays when you see your doctor or are hospitalized. All plans have a maximum out of pocket to protect you for bad health years so if you’re like the average senior and you see your doctor the 4-5 times a year , your health insurance cost will run you under $100.
    If you were asking about insurance to protect your family from loss then the answer get more complicated because we have to look at what insurance you already have in place, if you have a pension are you looking at taking a full or partial, do you have a 401K, if married when is your spouse going to retire and if it would be better to take their social security now or wait.
    With out knowing the answers to some of those questions answering that question would just be a blind shot in the dark.
    Answered on February 16, 2015
  3. 21750 POINTS
    Jim Winkler
    CEO/Owner, Winkler Financial Group, Houston, Texas
    That is a great question! I wish you'd been a little more specific, but here's how I'll answer you:
    1.) As long as you are driving, then have auto insurance. If you are finding it difficult to drive, and near misses becoming more frequent, either consider stopping, or be sure to have a good comprehensive coverage policy.
    2.) Have a good medi-gap plan, to fill in what medicare won't. You will need it, and a dental plan also, since medicare won't cover much dental work.
    3.) If you don't have dedicated savings set aside for the cost of your funeral and the replacement of your income, then a life insurance policy is a must. If you've got a plan in place and your finances squared away, maybe this isn't such a need, but if you're in the 99%, or would like to pass on some tax free wealth to loved ones, have a policy.
    4.) if you plan on staying in your home, then homeowner's insurance is a must, if downsizing, or moving into an apartment, then a renter's policy.
    Depending upon your situation, there could be other suggestions I'd make for you, but these are the basics. I hope that answered your question, thanks for asking!
    Answered on February 16, 2015
  4. 1492 POINTS
    Jeff Davis
    Insurance Advisor, Lordship Insurance Services, California
    Your insurance needs do not disappear at retirement although the coverage amounts may change. Car Insurance, home owners insurance, health insurance and life insurance all play a part in a solid financial plan.

    You should contact an Agent and have them conduct an Insurance preview. The last thing you want in retirement is to be paying for something that you really don't need to.
    Answered on July 21, 2015
  5. 5082 POINTS
    J Paul Wilson CFP, CHFC
    Certified Financial Planner, JPW Insurance Retirement Investments, Halifax, Nova Scotia, Canada
    What insurance you need in retirement depends on your individual situation. There are a number of things to consider. With your driving habits changing reviewing your automobile insurance could result in savings in premium. What group coverage if any will continue in retirement? What gaps need to be addressed? Conserve wealth for your legacy? Money for your favourite cause? Grandchildren? Income for loved ones? An overall review is recommended.

    Retirement has quite a few moving parts. You will find the retirement checklist helpful especially if you are from Canada http://jpw.ca/retirement-planning-checklist.html

    If you have any questions please do not hesitate to contact me.
    Answered on September 1, 2015
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