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Retirement Financial Advice by Trisperity Advisors


Health – Medicare doesn’t start until age 65, so if you retire before then, you’ll need to bridge the gap with alternative coverage.  You may have a retiree medical plan available through your former employer, buy many employers are dropping these plans because of costs. If 18 months of COBRA doesn’t get you to age 65, you will need to convert your group coverage to individual coverage or venture out into the private coverage market.

When Medicare starts, you also may need to buy a Medicare supplement policy, commonly called Medigap insurance, and a Medicare Plan D drug plan.

Medigap policies come in 10 standardized versions, A through J, with each version offering different degrees of benefits.  While the plan benefits are standardized among insurers, prices are not, so shop around carefully.  Prescription drug plans also can vary widely.  Trisperity Wealth Advisory Group can help you determine your need for these plans and choose the most appropriate coverage.            

Disability – Once you retire, you don’t need disability coverage.  Besides, most disability policies won’t cover you beyond normal retirement age.

Long-term care (LTC) – If you haven’t evaluated your need for LTC insurance, do it now.  The cost of coverage climbs rapidly with age.  Your risk of not qualifying because of health reasons also accelerates.

Life – You may need minimal or no life insurance at this stage – perhaps just enough to cover any debts you have and to be certain your spouse will be OK financially.

Larger amounts might still be appropriate if you want to pass the insurance proceeds to your adult children, use the proceeds to pay potential estate taxes or leave a bequest to a charity.  With large amounts, it’s often wise to shift ownership of the policy out of your estate in order to reduce any potential tax bite.
Other – Retirees often can get a discount for homeowner’s coverage, and they may get a discount for auto insurance until they turn 75.  Examine your policies periodically to make sure they adequately cover the current value of your property and that you aren’t paying premiums for items you no longer own.

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