Insuring a Better Retirement: Insurance Needs of Senior Citizens

The topic of insurance is a familiar one to most adults.  As you near the age of retirement, however, you will find that your insurance needs start to change.  Some insurance products that were a necessity during your working years, such as long term disability insurance, are no longer needed once you have retired from your career.  On the other hand, other insurance products become much more important to your financial future. Being properly insured is vital to a comfortable living and taking care of loved ones. In addition, knowing what financially base welfare benefits are available to you should you not qualify for certain insurances are also important.

  • Long Term Care Insurance – Even if you’ve amassed a large amount of savings in preparation of your retirement years, a stay at an assisted living facility or nursing home can quickly eat up your entire nest egg.  What will you do if your savings is spent caring for a spouse?

Having a long term care insurance policy in place can protect you from those high costs.  You’ll be able to keep your savings while making sure that you or your spouse can get the care needed.  Be aware, however, that premiums for long term care insurance become more costly as you age so you may want to look into purchasing this insurance early in your retirement years.

  • Supplemental Health, Dental and Vision Insurance – While many retirees are able to utilize Medicare to cover many of their health insurance needs, they often find that there is a big difference between Medicare coverage and the benefits they enjoyed with their traditional employer-provided group policies.  Medicare doesn’t cover all types of medical expenses including prescription medications.  Can you imagine shouldering all of the costs of medication on your own?

Additionally, Medicare doesn’t often any vision or dental benefits.  If you need glasses or wear contacts, a vision plan might be more cost effective than paying for your annual exams and glasses yourself.  An individual dental plan can also be relatively inexpensive when compared with the cost of root canals or dentures.

  • Homeowner’s or Renter’s Insurance – Some senior citizens decide to streamline their responsibilities by purchasing smaller homes that are easier to care for.  Others opt to relinquish the responsibility of homeownership altogether by moving into a rental property.  Whatever your housing situation might be, you should make sure that your property and home are protected from catastrophic events like fire or tornado.
  • Life Insurance – Do you have a spouse or loved one that you need to provide for after your passing?  Maybe you need to ensure that there is enough money to cover your final expenses.  Life insurance can be a good way to meet either of those needs.  If you have a policy in place now, be sure to pay the premiums as they are due.  A policy purchased now will be much more expensive than one you purchased several years ago.
  • Auto Insurance – Like all motorists, senior citizens must carry the minimum coverage required by their states.  This typically means liability coverage that will protect any innocent parties who might be in an accident with you.  You might decide, however, that you want a slightly beefier insurance policy.  Full coverage would protect you and your car if you were in an accident with an uninsured motorist.

This article was brought to you by Pensioner Loans Assistance. A personal finance blog which helps assist seniors on personal finance issues. Providing articles and tips on how to stretch their dollar, avoid scams and access new government/non-profit initiatives for seniors. 

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