Are you one of the thousands of “snowbirds” who flock to Arizona every winter? Or perhaps you’re a retiree who has decided to make the Grand Canyon State your permanent home? Either way, like many retirees, you probably have a financial plan in place to see you through your retirement.
Many retirees and “snowbirds” could benefit from new or revised insurance plans to avoid financial hardships and provide help for their families. Getting the wrong kind of insurance, or worse, skipping out on insurance entirely could put you and your family’s well-being at risk. So, let’s take a look at a few ways to reevaluate your insurance options:
Life Insurance
In recent years, the common misbelief that life insurance is only for young people has been slowly changing, giving a chance to those reaching the third age who grew up without life insurance to enjoy its benefits.
If you live in a household with limited income, you may worry about what you’ll leave behind for your loved ones after you’re gone. For married couples, it can be beneficial to get two individual life insurance plans or a joint life insurance plan. There are many different policies with pros and cons, which is why you should research for offer the best life insurance policy that suits your needs and means.
Medicare, Medicare Advantage, or Additional Coverage?
If you have access to Medicare, it’s probably in your best interest to enroll once you turn 65. If you’re like one of the millions of Americans who qualify for automatic enrollment through Social Security, you don’t even need to worry about signing up. Everything is taken care of for you.
That said, many retirees wonder if Original Medicare (Part A and B) is sufficient. The answer will vary for everyone, as it will largely depend on your health needs and budget. Fortunately, no matter what your situation looks like, there’s a Medicare option for you:
Original Medicare
Original Medicare (Part A and B) provides general coverage for inpatient care, outpatient care, ambulance services, and Durable Medical Equipment (DME).
Original Medicare + Part D
Part D provides prescription drug coverage, in addition to the coverage of Part A and Part B.
Original Medicare + Medicare Supplemental Insurance
Supplemental Medicare coverage helps pay for some or all deductibles, copayments, and coinsurances; you can also combine this coverage with a Part D prescription drug plan.
Medicare Advantage
Medicare Advantage is a private health plan that provides the same coverage as Original Medicare. Additionally, most Medicare Advantage plans include coverage for dental, vision, hearing, and prescription drugs. However, you cannot combine a Medicare Advantage plan with any form of supplemental insurance.
You can learn more about your health insurance options as a retiree on the Social Security Administration website. Additionally, feel free to check out our 5 tips for choosing a Medicare plan!
Insurance for Tangible Assets
While health and life insurance will help protect you from high medical bills and ensure that your family is taken care of, they won’t help guard against other large expenses. For example, if a flood causes irreparable damage to your home, you may have no way to reclaim some or all of your investment. Fortunately, insurance on tangible assets like homes, cars, boats, and similar items can prevent financial hardship in the event of unforeseen events.
Depending on where you live and how you paid for your assets, you may not have a choice but to acquire some form of insurance. For instance, if you took out a mortgage to buy your home, your lender may require you to get a home insurance plan that meets certain criteria. If you own a vehicle, you’ll likely need to acquire a car insurance plan that meets or exceeds the minimum requirements in your state or locality. You should always check the laws in your state and the requirements of your lender to make sure you have the right kind of insurance.
Bottom Line
Whether you’re a snowbird or a retiree looking to secure your financial future, you should not take a “set it and forget it” mentality when it comes to insurance. Whether you want to save money on a Medicare plan or ensure that your home is protected against storm damage, insurance can provide you and your family with greater peace of mind. As a result, it’s never too soon to take a second look at your insurance and make sure you’re getting the best coverage for your money.
