Do I Still Need Retirement Insurance?

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Do I Still Need Retirement Insurance?

By Ric Dalberri, Founder of Retirement USA

2011

Is retirement insurance really necessary? The government
will take care of me, right?

We all know that we could during our lifetime, become cash
poor and insurance rich. So, now, during the ‘golden years’ of retirement, do I
still need retirement insurance?

The answer is basically, yes and no. What I mean is, which
type of retirement insurance do I still need in retirement. Here are different
types of insurances that you usually have in your personal (not mentioning if
you are self employed for business insurances) portfolio:

1) Life

2) Health, dental, vision

3) Automobile, R.V., motorcycle, boat, etc.

4) Homeowners, flood

5) Disability

6) Long term care

7) Pet

8) Travel

So, you should now understand why I
said yes and no to needing retirement insurance.

Let’s start and go through the list.

1) Life insurance. The purpose of life insurance is to fill
the gap of financial loss, hardship, pay some debt and burial funds for those
left behind. If the answer is no to the purpose listed here then, you don’t
need life insurance. You may, however, want a charity to benefit or help a
family member in need. The amount of life insurance depends upon the amount of
money the individuals you leave behind will  need not to experience a
financial loss. You have to calculate your liabilities. Consult with an
insurance specialist as to the various insurance policies available to
you.  If you now own an insurance policy, you may consider having the cash
value pay your premiums or sell the policy (called viaticles) and set aside
some for burial and blow the rest.

2) Health, dental, vision insurance. Do I still need
retirement insurance? For this, yes.  If you leave your employer, there
may be an option to continue your health insurance. Many municipalities and
unions will allow this. You may consider to continue with COBRA for 18 months
until you decide what you will do until you go for Medicare. Remember, even if
you don’t want Medicare at 65 yrs of age, you still need to inform them that
you decline because of other coverage. If you don’t and at a later date, apply
for Medicare, you will be penalized and pay a higher premium. You may also need
a supplement to this.

3) Do I still need  retirement insurance for auto,
R.V., motorcycle, boat? Only you can decide this. For the most part, if you own
any of these in this category, the answer is yes. You decide how much.

4) Homeowners insurance is a must. Some policies will cover
you away from the home. Even if you don’t live in a flood zone, you may want to
consider flood insurance these days. Just watch the news and weather channel.
To become self insured is very risky if you do not have a lot of cash funds in
reserves.

5) Disability insurance. You probably have had this at your
work, even if you did clerical duties and not being a laborer. You probably
don’t need this type of retirement insurance, unless you are very active. Only
you can decide.

6) Do I still need retirement insurance? Long term care
should be a definite. The earlier you start (age wise) the less expensive your
premium will be. Check out the cost of medical care in and away from the home.
It could be a very expensive premium. Can you afford not to have this?

7) Pet Insurance is a personal choice. If you own a pet, you
know how expensive vet bills can be. Can you afford this type of
retirement insurance?

8) Travel insurance. When you decide to travel, you can take travel
insurance for the trip you are considering. It can be covered for different
reasons from cancellation, weather, medical. Some foreign countries will not
accept our (U.S.) medical coverage. This probably is a yes when traveling.

Retirement insurance is really a
choice based on need.

The need will depend on your lifestyle and your financial
capabilities. Your need will also depend on requirements of those around you. I
say that retirement insurance is also a choice because you can choose to have
it or not.