Retirement brings about many changes. Changes to your daily routine and finances. As a senior, you may end up with new schedules, hobbies, and even new homes. But did you know that retirement could also change your insurance needs? Continue reading to know how retirement will affect your insurance.
Health Insurance in Retirement
Health insurance is the most affected insurance after retirement. Most employer health insurance plans do not cover retirees, and if they do, the level of coverage may be very different during their working years. While Medicare is the primary source of health insurance for most retire, it won’t cover all your health care costs.
To fill gaps not covered by Medicare, you can secure Medicare supplement insurance or Medigap. The best time to buy a Medicare supplement or Medigap plan and get the best coverage is during the open enrollment period.
Life Insurance in Retirement
Your life insurance needs may change after retirement. A life insurance policy aims to protect your dependents from the loss of income if you pass away. If your dependents are now self-sufficient and don’t depend on your earnings, you may not need much life insurance. However, before you change your life insurance policy, you should remember that life insurance is not just for income replacement. It can help in estate planning.
If you find you need more coverage after retirement, it is not too late. Contact your insurance agent to review your insurance coverage and help you decide the right level of coverage for your retirement needs.