What You Need to Know About Insurance Before You Retire

Retiring is a significant milestone in a person’s life. If you’re in your late 40s, 50s, or even 60s, you are probably thinking about retirement pretty frequently. As you are nearing retirement, your excitement about your new future is most likely mixed with a little bit of apprehension and uncertainty. Having specific insurance policies in place before you retire, and others that kick in when you retire can help to relieve some of these worries. You also want to make sure your spouse and loved ones are protected should you pass. Here are a few types of insurance policies you should consider before you retire.

Life Insurance

Life insurance helps to cover your loved ones financially when you pass away. You pay a premium based on factors like your age, medical history and other risk factors, and in exchange, your insurance company pays a sum to the beneficiaries you choose upon your passing.

If you’re unsure if you need life insurance, take the time to answer the following questions inspired by Life Happens:

  • Do you have enough saved for funeral expenses?
  • Are your debts paid off?
  • Do you have enough savings to provide for your spouse for another 10-30 years?

If you answered no to any of these questions, it’s probably a good idea to get a life insurance policy.

Disability Insurance

Many people considering retiring begin to question whether or not they should cancel their disability insurance. InsureSTAT explains, “disability insurance is generally priced based on morbidity risk or likelihood to develop chronic illness.” The return on investment with disability insurance diminishes as you age and usually stops paying out at age 65. However, between the ages of 50-65 is also a time when a disability might be more likely. People in their mid 50s tend to need disability the most, but those up to their mid 60s could also benefit from it. That being said, some don’t need it altogether, so it depends on your situation and what you feel comfortable investing in.

Long-Term Care Insurance

After reaching retirement age, some people will need some form of long-term care, whether it be through a nursing home or in-home care. However, long-term care is generally not covered by health insurance nor by Medicare.

Long-term care insurance is an option that can help protect your savings, assets and inheritance after retirement. The earlier you plan for this, the lower the rates you’ll pay. If you have a spouse who also needs care, some companies have an option for shared care, which allows you and your spouse to share coverage.


It’s crucial to ensure you can live without the safety net of this type of insurance before canceling. There are some disability policies that pay for life, offering tremendous value. Partial disability coverage can replace lost income if the disability reduces your ability to earn money. Make sure you pay for disability coverage insurance with your personal, after-tax dollars to maximize your benefit by allowing them to be tax-free.


If you feel like you need some extra help with you financial education, make sure to keep us in mind. We offer hands on, and online resources for those who want to learn more about their financial abilities.

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