Health ? Medicare
doesn?t start until age 65, so if you retire before then, you?ll need to bridge
the gap with alternative coverage. You
may have a retiree medical plan available through your former employer, buy
many employers are dropping these plans because of costs. If 18 months of COBRA doesn?t get you to age
65, you will need to convert your group coverage to individual coverage or
venture out into the private coverage market.
When
Medicare starts, you also may need to buy a Medicare supplement policy,
commonly called Medigap insurance, and a Medicare Plan D drug plan.
Medigap
policies come in 10 standardized versions, A through J, with each version
offering different degrees of benefits.
While the plan benefits are standardized among insurers, prices are not,
so shop around carefully. Prescription
drug plans also can vary widely. Trisperity
Wealth Advisory Group can help you determine your need for these plans and
choose the most appropriate coverage.
Disability
? Once you retire, you don?t need disability coverage. Besides, most disability policies won?t cover
you beyond normal retirement age.
Long-term
care (LTC) ? If you haven?t evaluated your need for LTC insurance, do it
now. The cost of coverage climbs rapidly
with age. Your risk of not qualifying
because of health reasons also accelerates.
Life ? You
may need minimal or no life insurance at this stage ? perhaps just enough to
cover any debts you have and to be certain your spouse will be OK financially.
Larger
amounts might still be appropriate if you want to pass the insurance proceeds
to your adult children, use the proceeds to pay potential estate taxes or leave
a bequest to a charity. With large
amounts, it?s often wise to shift ownership of the policy out of your estate in
order to reduce any potential tax bite.
Other ? Retirees
often can get a discount for homeowner?s coverage, and they may get a discount
for auto insurance until they turn 75.
Examine your policies periodically to make sure they adequately cover
the current value of your property and that you aren?t paying premiums for
items you no longer own.
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