Insurance is like a raincoat. It can be somewhat of a nuisance when you don’t need it, but when you do, you’re more than grateful to have it. Without insurance, you’re one illness, house fire or accident away from drowning – not in the rain, but in debt.
You can find insurance coverage for almost everything imaginable, but with so many policies out there in the market, you might not know what’s essential and what you can do without. It’s important for seniors to be covered, but being too covered could take your savings away from other areas, such as your rainy day fund and emergency savings. So we’ve boiled your choices down to the three types of insurance policies you can’t and shouldn’t live without:
1. Health Insurance
Even if you are healthy and didn’t require a visit to the family doctor in the past few months, you should have a health insurance policy. Your good health is what allows you to enjoy life. If you were to suffer an accident or experience a severe illness without being covered, you might find yourself unable to afford treatment. Fortunately, you have options like the federal government’s Medicare program for health care coverage. The health insurance policy, created in 1965, offers health coverage for people aged 65 and above. However, choosing the right Medicare plan can be confusing when you enroll in Medicare for the first time.
With so many plans on offer, you could end up choosing the one you didn’t need. That’s why it is essential to learn about the advantages of different Medicare plans. For instance, you might not know that Medicare part c plans include the Original Medicare, but also adds on several other great benefits that the Original Medicare is missing such as dental, vision, and hearing care. Certain types of part c plans will also provide you access to a Medical Savings Account. This works like a tax-free saving account for medical bills; Medicare deposits the funds into your HAS, and then you get to use that account to pay for expenses. A nationally licensed insurance agency can help you to find out if you’re eligible for unique benefits such as these.
2. Auto Insurance
If you’re in your forties, you probably do not have to sweat over the potential increase in car insurance premiums just yet, but as you get to your sixties, even basic coverage can start to get more and more costly. With good decision making though, it doesn’t have to be this way. Several insurance firms offer discounted policies to senior drivers, as well as those who have safety features on their car, are enrolled in defensive driving programs, and use drive tracking applications.
If you’ve stopped commuting from and to your office every day due to retirement, you also could qualify for a discount for less driving. An example of one such policy for senior drivers is The Hartford AARP Program. It’s tailor-made for older drivers and ensures that you aren’t dropped unless you fail to maintain an official driving license or continually fail to clear your premiums. Plus, you get the option to buy a plan featuring a vanishing deductible, meaning your deductible reduces each year you’re not involved in an accident.
3. Life Insurance
Amongst the variety of life insurance options on the market, term life insurance is perhaps the most ideal for seniors. It offers more coverage at an affordable price. Even if you’re going to turn 65 soon (the upper limit to qualify for term insurance at many providers), you could get a policy for lower than $100/month if you don’t have any health-related issues.
A term life insurance makes sense for specific reasons, like paying off debts, clearing final expenses, or providing for your grandchildren’s education for a certain period. If you will only require the coverage for a decade or two, it’s best to opt for a term policy. While longer terms have higher premiums, it’s better to bear a higher bill than to grieve without life insurance when you realize you need it.
The need to secure yourself against any calamity is essential. While some kinds of insurance would be a waste of money at your age, the policies mentioned above would deliver a high ROI during a time of crisis.
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