Will you need life and health insurance in retirement?
During your working years, many types of insurance are usually considered to be necessary. For example, life insurance protects your family’s financial security and disability insurance protects your income. In retirement, life and health insurance is to a large extent optional, but may still be regarded as essential to many retirees.
Disability and critical illness insurance
You won’t be getting disability insurance once you’ve stopped working, as this coverage replaces your income from employment or self-employment. Also, disability insurance typically offers coverage up to age 65.
Critical illness insurance policies are available that provide protection up to age 75 or for your lifetime, but you need to purchase such a policy by age 65 or earlier. Premiums are more expensive for coverage during retirement because there’s increased likelihood of suffering a heart attack or stroke, or being diagnosed with cancer at older ages. With this coverage, retirees who make a claim are able to preserve retirement savings by using the insurance benefit to cover expenses associated with the critical illness. Expenses could include out-of-country medical procedures, home modifications or nursing care.
Tags: Summer 2021