Are you looking forward to the day when you no longer have to work? Even if you plan on working a bit in retirement, the full-time grind will be in the past. You now have the time to focus on things that are more important to you, such as your family and traveling.
Regardless of your age, retirement planning is something you should always have in the back of your mind. If you ignore this, there is a good chance you won’t be happy with where you end up. Remember, it only takes one mistake to cause you trouble in retirement.
Having the right insurance in place is a big part of retirement. It is easy to believe that you can begin to back off your insurance needs as you age, but this is not typically the case. If you do this, you may be putting yourself in a challenging position. Furthermore, it could put a lot of stress on your family in the future, such as if you become incapacitated or pass on.
Types of Insurance to Consider
You are not required to purchase the following types of insurance. Even so, most people in retirement find that it would be in their best interest. Not only does it give them peace of mind during this stage of their life, but it does the same for their loved ones.
Life Insurance
Most people are familiar with the benefits of life insurance. As long as you have an active policy when you pass away, your beneficiary will receive the death benefit.
Life insurance is not something you should wait to purchase. There is a reason for this: the older you are the more expensive it will be. On the same token, if you have any health concerns, which are more common in retirement, your premium will also be higher.
There are many types of life insurance to consider, with whole life, term life, and universal among the most popular.
If you want to guarantee your beneficiary of a death benefit payment, whole life insurance is the way to go.
Long Term Care Insurance
It goes without saying that you never want to be in a position to receive home care or spend time in a nursing facility. Unfortunately, this could happen at some point during your retirement.
If you don’t have long term care insurance, you must rely on your personal savings and other assets to pay for care. If this doesn’t work for you, it is your hopes that your family will come through.
Rather than risk your money and put your family in a difficult position, you should consider the benefits of long term care insurance. With this type of policy, some or all of your care will be covered. Subsequently, you don’t have to worry about burning through all the money you worked so hard to save.
Disability Insurance
Are you interested in working in retirement? This is something that a growing number of people are doing. If this sounds intriguing, you may want to purchase a disability insurance policy.
If you are injured on the job, your policy will pay out a percentage of your salary until you are able to return to work.
Note: check with your employer to see if they provide group disability insurance. If they do, you may be able to receive coverage for free. Even if it costs, it could be less than what you would spend on your own.
These are three types of insurance you may want to have as you reach retirement age.
Do you have more questions about retirement planning and the types of insurance you need? If so, don’t hesitate to meet with an estate planning attorney. Along with this, don’t wait to download our free report entitled “Fifteen Common Reasons To Do Estate Planning.”
With this report guiding you, it is easier to understand why you need to create an estate plan and how to focus on your retirement and insurance options when doing so.
There is a lot that goes into retirement planning, and insurance matters should be at the top of your list. Don’t wait to give these details the attention they deserve.
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