Insurance for the Next Chapter
Retirement is a major life milestone — and it often marks a significant shift in your financial priorities and risks. One area that deserves a thorough review during this transition is your insurance coverage. As your daily routine, income, and health care options change, so do your insurance needs. Whether you’re newly retired or planning ahead, understanding how to adjust your coverage can help protect your financial well-being and give you peace of mind.
Why Insurance Needs Shift in Retirement
Simply put: Your insurance changes because your needs change. Typically, there are four key factors that influence this shift:
- Lifestyle changes, including downsizing, moving, or even traveling more
- Loss of employer-sponsored benefits, which can also include life and long-term care insurance
- A fixed income with a limited budget, likely consisting of Social Security and savings
- Health care costs associated with aging
Health Insurance
By far, health insurance coverage changes the most in retirement. Medicare becomes the primary foundation of health care for most American retirees who are 65 and older. If you’re retiring before age 65 or you don’t qualify for Medicare, these are the more prominent options:
- Your former employer’s health plan, extended through COBRA
- An individual health insurance policy purchased from the federal health insurance marketplace or through a company, such as a Texas Farm Bureau Health Plan
But Medicare doesn’t cover everything, leading some retirees to consider Medicare supplement insurance plans (also called Medigap). Texas Farm Bureau Insurance offers plans such as this for Medicare-eligible members that can help cover many costs Medicare doesn’t cover.
Long-Term Care Insurance
Long-term care expenses can be one of the most significant expenses retirees face as they age. Long-term care insurance covers a variety of services that don’t include medical care (e.g., assistance with daily, routine tasks, such as bathing and dressing). But Medicare and Medicare supplement insurance don’t pay for most of these needs, making long-term care insurance an important consideration in retirement planning.
People usually buy long-term care insurance to protect their assets and give them access to more choices for care. Before buying a policy, consider the following:
- Overall health
- Assets
- Income
- Potential care needs
Rates for long-term health insurance rely on a variety of factors, such as age, health, location, benefit amounts, and duration. This suitability worksheet from the Texas Department of Insurance can help you determine whether or not you need a long-term care policy. But if you’re still stumped, give your Texas Farm Bureau Insurance Agent a call.
Property Insurance
While it may look a little different in retirement, property insurance is still important. You’ll need it to protect your space, whether that’s a paid-off home or a new, smaller condo after downsizing. Make sure your policy reflects your current living situation.
Auto Insurance
There are a couple of ways to save on auto insurance as you ride into retirement. These are some of the most common discounts:
- Combine your home and auto policy for maximum savings.
- Vehicle safety. Some factory-installed vehicle safety features can lead to a discount.
- Safe driving. No claims in the past three years? Claim your discount.
Retiring Soon? A 360 Review Can Help
Give your Texas Farm Bureau Insurance Agent a call and schedule a 360 Review. This way, you’ll get a comprehensive, systematic look at all of your insurance policies before you step into your life’s next — and arguably most exciting — chapter. You’ll also be alerted to any coverage gaps and get an analysis of any life changes or circumstances (such as retirement) that might impact your insurance policies.
If you’re a few years out from retirement, you should still opt for this free annual review. A 360 Review can help catch a few things, ranging from coverage gaps to liability risk to potential discounts.
It’s never too soon to think about this phase of life. Learn how to start saving for retirement.
Coverage and discounts are subject to qualifications and policy terms and may vary by situation.
