Identify Your Retirement-Insurance Options

Our retirement-insurance needs are generally the same after retirement as they were before we retired. Any differences will be driven by changes in income, housing, healthcare etc. How we are perceived by our many publics such as family, potential employers, the government and ourselves (to name a few) will affect how we meet our retirement-insurance needs.

A review of your insurance coverage should be a part of your planning. Do you have enough health and life insurance? If you plan to retire prior to 65 years of age health coverage may be an issue. It is advisable to find out before retiring. Will the state of your health be an obstacle in obtaining health insurance coverage? You will need a risk assessment on your home, healthcare, automobile and other needed coverage. This is where the services of a qualified professional should be used

Our retirement insurance program should include at a minimum the six primary areas of risk. Those would be: 

  1. Health
  2. Life
  3. Home
  4. Automobile
  5. Disability
  6. Eternal Life Insurance

Life Insurance 

We will, in my view, always need life insurance. When we were young and working, our concern was the financial needs of our dependents in the event something happened to us. Many turned to relatively inexpensive (initially) term life insurance and that was fine at the time.  But as we get older, we become more of a risk for insurance companies. Increased risk leads to big increases in term insurance premiums. What we end up with is unaffordable insurance that has no equity and no cash value. Whether we terminate the term insurance or the insurance company does, it will eventually be gone just when we need it most. 

While term life serves a need and has a place in our retirement-insurance portfolio, permanent life insurance should be included because it builds equity and has level cost. Also the life insurance coverage never ends as long as you continue paying the premium. Permanent life insurance is also a great way to build a tax free nest egg for retirement. My advice is to discuss with your financial or insurance consultant and buy and read Patrick Kelly’s book “Tax-Free Retirement.”

Health Insurance 

If you plan to retire prior to 65 years of age, check cost and availability of health coverage with your insurance consultant. Medicare Part A (Hospital Insurance) health coverage is currently available for retirees 65 years old or older who have paid Medicare taxes while working. You are automatically enrolled in Medicare A when you reach 65. You elect to participate in Medicare Part B and pay a premium each month for Medicare Part B (Medical Insurance). Most people pay the standard premium amount. However, if your modified adjusted gross income as reported on your IRS tax return from 2 years ago is above a floor amount you may pay more.

Home and Automobile 

We have found that buying both home and automobile insurance from the same company provides the best rates. Choosing a higher deductible will also result in a better rate. If you live in a condominium or rent an apartment, you should consider renter’s insurance on contents as part of your retirement-insurance plan. Some states require renter’s insurance. Florida requires it on condominiums.

Disability Insurance

Disability insurance can help replace some of our lost income in the event of a disabling illness or accident. We all consider life insurance to be necessary because we will all die. But not many of us consider disability insurance that important even though there is a real possibility of a disabling accident at some point during our lifetime. If you are under the age of 65, you should discuss disability insurance with your insurance consultant.  

Eternal Life Insurance

Eternal life insurance can’t be purchased. It is a free gift. GOD’s only provision to bridge the gap between Himself and people is JESUS CHRIST. JESUS CHRIST died on the cross to pay the penalty for our sin. A personal relationship with JESUS begins with hearing the Word of GOD and acknowledging that what you heard is the truth, then making an intellectual decision to establish a personal relationship with Him. The intellectual decision is then followed by an act of your will, based on faith in GOD's Word.

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