Whether you plan to travel, serve your community, or spend more time with your family, retirement will bring changes in the ways you spend your time. And whenever life changes, so do the risks you face- which means retirement is a good time to evaluate your insurance coverage.
You might need more, less or different coverage, and you might also qualify for new discounts.
Here are five insurance tasks you should prioritize as you enter retirement.
- Ask about car insurance discounts and coverage. There are a couple of ways you can save money on car insurance once your retire.
- Tell your car insurance agent or company you’re no longer commuting. Driving fewer miles may reduce your car insurance rates.
- Take a defensive driving course. Most states require car insurers to give discounted rates to older adults, usually age 55 and up, who complete these classes. AARP and AAA are among the groups that offer the courses, many of which are available online for less than $20.00
- Contract your homeowners insurance company. Find out if your homeowners insurance company offers discounts to retirees. Some do, reasoning that retirees are at home more often, reducing the risk of burglary, fire and other problems, according to the Insurance Information Institute. Planning a big remodel? Update your total coverage amount to include the improvements. It should cover the cost to rebuild your home. Travel plans could also impact homeowners insurance. If you’re going to live or spend time abroad, or spend the summer visiting grandkids, your home will be vacant and you will need to get an endorsement- an addition to the policy- to cover the risk. If you plan to rent your home through a service like Airbnb while you’re gone, you might also need special coverage in that case.
- Re-evaluate life insurance. If your kids are grown, your house is paid off, and you have enough retirement savings to support you and your spouse, you might not need life insurance. But there are a few reasons why getting life insurance quotes and buying a policy as you near retirement might be a smart decision, says Marvin Feldman, president and CEO of industry group life happens. Some of the factors are pretty predictable- such as the financial obligation brought on by dependents and mortgages-but your unexpected death could prove to be a huge financial burden for your spouse, reducing your social security benefits and possibly pension benefits and bringing about unplanned medical and funeral expenses.
If your death would still hurt someone financially, consider a permanent policy, such as a whole life insurance, to cover funeral and other final expenses. And if your estate will be subject to taxes, your heirs can pay them with life insurance needs.
Please call us at 817-277-6166 if you have any questions or would like to review your current policy. We are an authorized agent for Hartford AARP and would love to help you. We have offices in Mansfield and Midlothian Texas. We offer personal and commercial insurance.