Midlife Insurance Audit

We need different types of insurance policies for different phases of our lives, for different amounts, for different reasons. If you haven’t taken stock of your current coverages by the time you hit middle age, it may be time for a midlife audit. If it’s been even longer, you’re probably overdue.

The following are some guidelines to help determine what coverage you might need heading toward and while in retirement.1

  • Health Insurance — If still working, it’s important to make sure your workplace or individual health insurance policy has a wide network of physicians and specialists. If you are eligible for Medicare, research your options before choosing your policy. You can go to gov for more information.
  • One way to help reduce the cost of routine care is to utilize telemedicine services, now covered by many health insurance A telemed “visit” can cost a fraction of the price, and you don’t even have to leave home.
  • Life Insurance – One way to help determine how much life insurance you may need is by your financial situation, not your age. Couples with limited retirement funding sources might want to consider purchasing a policy to help with expenses after the first spouse dies.
  • Because term life insurance premiums grow in cost as we get older, an option is to switch to the fixed premiums of a whole life policy.
  • Home Insurance — If you make significant improvements to your home — including features to help you “age in place” — be sure to contact your insurer to upgrade your coverage for the full value of your home.
  • Note that in recent years new areas of the country have experienced flooding due to storms, so explore purchasing flood insurance because most homeowner policies do not include it.
  • Auto Insurance — According to Consumer Reports, if your combined annual premium for comprehensive and collision coverage is 10 percent or more than the book value of your car, it may be worth considering dropping that extra coverage. That’s because the insurer will not pay out more than the car’s cash value, regardless of the amount of the claim.

Insurance can play an important role in your retirement planning. We’ll be happy to help you assess your life insurance needs for retirement; just give us a call.

1 Jack Fehr. Next Avenue. The Macomb Daily. April 24, 2017. “How to give yourself a mid-life insurance audit.” http://www.macombdaily.com/article/MD/20170424/NEWS/170429785. Accessed Nov. 27, 2017.