How does my retirement affect my insurance? Probably more than you think. Here are a couple things to consider before retiring:
Health Insurance: This is something many people don’t think about until it’s potentially too late.
If you retire before you are eligible for Medicare, your options for coverage will either be COBRA (which an be costly) or going on a plan through the Affordable Care Act. The issue with the ACA is that depending on your income (and they look at your YTD), it might cost you up to $2000 per month for just yourself.
If you are retiring at or after the age of 65, then Medicare will be your best bet. We are here to help you review all aspects of Medicare options and help you choose the best one for you. We recommend you start planning at least 3-4 months in advance, that way your insurance is set up when you retire, and you can relax without stressing about insurance.
Long Term Care Insurance: It’s not everyone’s favorite topic, but do you have a plan in place if you need extended care? You worked hard to be able to retire and you don’t want all of your money going towards costly long term care expenses. The best time to purchase long term care is before you turn 65 to get the lowest rates and best plan options. The longer you wait, the more expensive it is, and you could become ineligible.
Life Insurance: Do you have your life insurance from work? Can you carry it with you? When you retire you should ask yourself if you still have a need for life insurance. If the answer is yes, you should check with your employer to see if your plan is portable. If not, speak with an insurance agent to help you secure a new life policy before you reach the age of 67-70. After that you may not be eligible to purchase a plan.
Auto Insurance: Lastly, you can also lower your car insurance by removing coverage that you no longer need - like income loss coverage. Also, you should update your specific vehicle usage - if you are no longer commuting, changing to "pleasure use" can likely save you a bunch.
If you are planning your retirement in the next couple of months or years, give us a call to discuss all your options!