If you or a loved one is planning to retire this year, it is extremely important to consider the types of insurance that would be most beneficial to invest in during this transitional period. We’ve compiled an informative list of four insurance policies every retiree must have, and why they are so crucial.
In many states, Pennsylvania included, it is illegal to own and drive a vehicle without car insurance of some kind. That being said, it is important for seniors to ensure that their policy is up to date if they plan to continue driving after retirement. Pennsylvania law requires that drivers choose between Full Tort and Limited Tort on their insurance policy; Full Tort gives one the ability to sue for pain and suffering regardless of how small the injury. Limited Tort, on the other hand, restricts this ability but is more commonly chosen due to the premium savings that it offers. Retirees should review their coverage and make sure their vehicle is insured properly.
Many believe that life insurance is no longer necessary for retirees. However, this is not always the case. If you still have people in your life who financially depend on you, such as a spouse or minor, you need life insurance to cover the risk. Additionally, coverage can help with taxes during retirement. According to Dr. Russ DeLibero, “When properly structured, life insurance can provide tax-deferred growth, tax-free cash flow, and a tax-free death benefit. The tax-preferential treatment provided to life insurance allows an individual to have greater flexibility over which dollars to use during retirement, and depending on the type of life insurance, it can also provide a non-correlated asset to the portfolio providing additional diversification.” Depending on each retiree’s situation and individual retirement plans, they can choose between term or whole life insurance. If you are a retiree and your death could hurt someone financially, whole life insurance would help to cover any expenses.
No matter your age or the size of your house, apartment, or condo, it is essential that you invest in homeowner’s insurance to protect your belongings. If you intend to spend a significant amount of time away from your home on vacation after retirement, be sure to let your insurer know; you will need an endorsement to cover the risk associated with leaving your house vacant for an extended period. Essentially, update your homeowners insurance policy as needed after retirement so that you know your most treasured belongings are safe.
Umbrella insurance is not required, but it provides an additional layer of liability protection over what you already have with a homeowners or auto insurance policy. This type of insurance is often purchased by individuals who have assetts that need protection, such as investments properties, or have potentially dangerous things such as a pool or a high-risk dog breed. Anyone can benefit from umbrella insurance, especially considering one liability lawsuit can completely wipe out any savings you have generated over the years. For example, if you get sued for more than what your home or car insurance will cover, umbrella insurance helps pay what you owe. This coverage is especially important for retirees who are no longer receiving income that would help pay for a potential lawsuit.
Call Risk Averse Insurance in Media, PA to discuss insurance for you or your business.
Risk Averse Insurance is an insurance agency in Delaware County that specializes in providing high-quality insurance products at an affordable price.