As a senior, you're either heading toward or deeply entrenched in retirement. You might think that, since retirement changes so many parts of your life, it will also change how you handle insurance—and you may be right since insurance can be even more precious as you age.
Home and Renters Insurance
Many seniors no longer have the luxury of earning income for decades as they did when they were young. That means that the assets a senior has acquired are even more important to protect since replacing them might be impossible with just their retirement savings. Home and renters insurance offer great ways to affordably protect the value of your assets and help replace them after an insurable incident. Just keep in mind that, since many seniors decide to downsize after retirement, you may need to adjust your limits.
Long-Term Care Insurance
According to the American Association for long-term care insurance, 42 percent of people age 65 and over reported having a limitation in their functional abilities and 18 percent of them had difficulty with at least one of the activities of daily living (ADLs). The chances that you will need long-term care insurance benefits as you age are great. This coverage will help ensure that your family doesn’t need to access savings or sell assets in order to provide you with the care that you’ll likely need when physical limitations prevent you from caring for yourself.
Once you retire, your retirement savings offers a limited pool of funds to help support you through an unknown number of years. Depending on how these funds are invested you may gain some or you may lose some but, unless you continue working through retirement, you will probably not add anything significant to them. A permanent life insurance policy can become an additional source of funds if you choose to take tax-free loans from the cash values. In addition, the death benefit ensures that you’ll leave a legacy to your heirs even if you deplete your retirement savings.*
Our agency is here to help you navigate through challenges associated with insurance planning for seniors. If you have questions about your insurance portfolio or need to add additional coverage, give us a call at Magill Agency or stop by.
*It's important to note that any unpaid loans taken from a life insurance policies cash values will reduce the death benefit.