If you’re retired, your house is paid off, and your children are self-sufficient, is there any reason to continue carrying life insurance later in life? Perhaps not.
Generally speaking, life insurance is intended to replace lost income if you die prematurely; if you’re no longer working, there’s no income to replace.
But before you let your policy lapse, it may be wise to consider a few exceptions.
You’re still working. If you continue to work part time during retirement, you may want to protect your spouse from the loss of that part-time income if you die. However, this depends on how much you earn, and how much your spouse needs that income.
You’re in debt. If you’re still paying off large loans (from mortgages, failed business ventures, and such), you may want to consider a term life insurance policy that will cover the period until the loans are paid off. To minimize premiums, however, ensure you have just enough coverage to eliminate your debt, and that the policy expires at the same time the debt is scheduled to be paid off.
You’re still caring for a child. Some children have greater needs than others, even into adulthood. If your child needs ongoing support (such as assisted living or special medical care) you should have sufficient coverage to continue to pay those expenses after you die.
You’re leaving a charitable legacy. Some people buy life insurance for the purpose of leaving a charitable legacy. For example, instead of making small annual donations to your college, you might buy a significant life insurance policy equal to the sum of those annual donations, and make the charity the beneficiary.
You’re estate planning. Proceeds from a life insurance policy can be an immediate source of cash for your heirs, allowing them to pay funeral expenses and estate taxes without having to sell illiquid assets, such as property.
It’s Vital to Supplement Medicare as You Age
According to studies, 10,000 new participants enroll in Medicare each day. And as baby boomers age into retirement, this groundswell will continue.
It’s likely that as we age, we’ll eventually need care for chronic and costly medical conditions. If you’re approaching Medicare eligibility, you should start thinking about it now. There’s information out there, but it can get confusing. So where do you turn to get the facts you need?
Supplemental plans: Because Medicare, which includes Part A (hospital) and Part B (medical insurance), leaves seniors with copays, coinsurance, and deductibles, always consider a supplemental medical insurance policy. A supplemental plan will help defray costs, and most provide prescription drug coverage (Part D). You have many choices of supplemental plans, such as Preferred Provider Options (PPOs), Private Fee-for-Service Plans, and Health Maintenance Organizations (HMOs).
Seniors usually have long-standing relationships with primary care physicians and specialists. To continue to see your current providers, you must choose a Medicare supplement plan that covers your physicians. That’s why you should turn to your insurance agent, who can help you choose appropriate coverage levels for a plan that covers these providers…and meets your other needs.
Changing needs: If after a time you find your supplemental plan isn’t right for you, you can change plans. For example, if your physician retires or stops accepting Medicare, you may have to choose another physician.
Generally you can make changes only during Medicare’s open enrollment period (for 2017, the open enrollment period is from November 1, 2016, to January 31, 2017).
Your agent can help: If you’ve chosen your supplemental medical insurance plan with your agent’s help, he or she will be up to speed on your personal situation and provide options should you have to change plans.
But ensure you start planning soon. November is just a few months away, and things get busy in the fall.
Lightship Insurance Provides Auto/Car Insurance, Home Insurance, Business/Commercial Insurance, Life/Health Insurance to All of Colorado, Including Denver, Aurora, Colorado Springs, Lonetree, and Vail.