Life has too many uncertainties to meet it unprepared. One area that you should always plan carefully for is retirement. With reduced income flowing in, rising healthcare costs, and longer life expectancies, you need to be certain that you are ready to retire.
Careful insurance planning now can help you find that security you need in retirement.
Extra Income
Some types of insurance can provide an extra source of income when you retire. One example of this is whole life insurance. Whole life insurance is different from term life insurance in that it will insure you for your entire life, rather than for a set amount of time. While whole life insurance premiums tend to be higher than term life insurance, your policy offers several additional advantages.
Cash value whole life insurance policies allow you to defer tax payments on your earnings. They also provide additional income during retirement. Some whole life insurance policies could even earn you additional dividends.
Long-Term Care
It is also important to plan for your healthcare costs during retirement. While no one wants to think about it, you might require long-term care at some point. Be sure to apply for Medicare as soon as you turn 65. You might even be eligible for Medicaid. Medicare and Medicaid both cover some portion of hospice care costs.
Without the help of these programs, your healthcare costs could quickly grow far beyond your ability to cover. There are several Medicare packages available, so be sure to get the ones that will fully protect you financially if the unthinkable happens and you require long-term medical care.
Protect You From Loss
Many retirees have paid off their homes and are no longer required to pay homeowners insurance. However, it is a mistake to let those policies go. Damage to your home can happen at any time, and repair costs can be truly catastrophic for people without insurance. A simple hailstorm alone could end up costing you tens of thousands of dollars in repairs.
Imagine what a flood, tornado, or fire could do! During retirement, you can’t be depleting your savings like that. Having insurance policies on your home as well as your vehicles can save you from devastating losses.
As you prepare for retirement don’t forget about insurance. Careful insurance planning is an important part of your overall financial strategy. Don’t simply react to the curve balls that life throws at you. Instead, be proactive with wise insurance choices.
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