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Navigating Insurance Needs During Retirement

by | Feb 10, 2022

Congratulations on reaching the milestone of retirement! I sort-of know what it feels like now that I’m nearing 70. This stage of life brings excitement, anticipation, and possibly some concerns. You might have yet to think much about your insurance needs during retirement. While you’ve likely set up insurance coverage long before now, reviewing your insurance as you transition into retirement is essential. 

Adapting Your Auto Insurance

As a retiree, your driving habits may change, potentially impacting your auto insurance. Here’s what to discuss with your agent:

  • Less mileage: With no daily commute, you might qualify for lower rates based on reduced mileage.
  • Defensive driving class: Some insurers offer discounts for seniors who take a defensive driving course.
  • Higher deductible: It might lower your premium if you can afford a higher deductible.
  • Occasional use vehicle: If you have a car you rarely drive, explore options to maintain adequate coverage while potentially saving money.

Remember, maintaining adequate liability limits is crucial to protect your financial well-being.

Home Insurance Considerations

Paying off your mortgage is a significant achievement, but it doesn’t mean you should cancel your homeowners’ insurance. Here are some points to consider:

  • Keep your policy in force: Your home, belongings, and personal liability coverage are still essential, even without a mortgage.
  • Review your coverages: Assess whether your policy limits are sufficient and your possessions are accurately accounted for.
  • Travel plans: Will you be traveling more during retirement? Discuss how this might impact your coverage needs with your agent.

The Snowbird Lifestyle

If you plan on spending months away from home each year, consider the following:

  • Coverage while you’re away: Ensure your home and belongings are protected during your absence.
  • Auto insurance at your destination: Discuss with your agent how to maintain proper coverage for your vehicle(s) while you’re away.
  • Different state regulations: Ensure you understand insurance requirements in the states you visit.

Reevaluating Life Insurance

Assessing whether life insurance is still necessary for your circumstances is essential during retirement. Consider the following questions:

  • Would your spouse or dependents face financial hardship if you passed away?
  • Are all your debts paid off?
  • Have you set aside funds for funeral expenses?
  • Would your estate trigger tax burdens for your family?
  • Do you have enough savings to support your spouse and dependents for 10, 20, or 30 years?

Long-term Care Insurance

Planning for long-term care is an essential part of retirement. Long-term care insurance can protect your assets, savings, and inheritance, but planning early is crucial. Some points to consider:

  • Different care options: Long-term care ranges from hourly in-home assistance to full-time nursing home care.
  • Costs: Long-term care expenses can vary greatly depending on the type and location of care.
  • Self-insurance: You may self-insure if you have sufficient funds and assets to cover long-term care costs.
  • Marital status: The decision to purchase long-term care insurance may differ if you’re single or married.

Working with Professionals

Retirement is a complex phase of life, and it’s essential to work with professionals to navigate the insurance landscape:

  • Insurance agent: Consult your insurance agent to discuss your changing needs and adjust your coverage accordingly.
  • Financial planner: A financial planner can help assess your financial situation and recommend insurance strategies.

We’re Here for You

Reviewing and adjusting your insurance policies can save money and ensure you’re well-prepared for the future.

Remember, it’s essential to work closely with your insurance agent (we’re here!) and financial planner to make informed decisions about your coverage. They can help you navigate the complexities of retirement and provide tailored advice based on your circumstances.

With the right insurance strategy, you can enter your retirement with confidence and peace of mind, ready to enjoy this new chapter in your life. Maybe I’ll see you out on the golf course!

Ready to explore options with the Page team? Click here.


Sid Page, the founder of Page Insurance, has over 40 years of experience in the industry. After working as a captive agent for a leading insurance corporation, he established Page Insurance in 1998. Specializing in Property & Casualty and Life, Health, and Disability insurance, Sid has received numerous awards for his client-first approach and community involvement. Passionate about meeting new people, Sid enjoys golfing, fishing, and spending time in the Tetons. He cherishes his family, including his wife, sons at Page Insurance, and beloved grandchildren.