Balancing the right amount of insurance
How do you know when you have enough insurance?
Everyone needs some type of insurance throughout their lives, but if you own a home or have a spouse and family, you might need to update your coverage to secure your future. With all the different types of insurance, it can be tough to know when you have enough and how much coverage is necessary.
Senior health insurance
Perhaps the most important type of insurance for seniors heading into retirement is health insurance. A large majority of seniors get their healthcare partially insured by Medicare to pay for doctor visits and hospital bills. Medicare will cover about 80 percent of most services, leaving you to pick up the remaining 20 percent. Without this help, you could be left to pay completely out of pocket and in financial distress.
Unfortunately, Medicare doesn't cover everything, and you may to take out supplemental insurance if you think you might need specific plans for long term care or prescription drug plans. Supplemental insurance can also help pay for parts of Medicare that you would otherwise have to cover such as co-payments, coinsurance and deductibles. How much supplemental insurance you need will depend on your finances and ability to pay for your portion of healthcare under Medicare.
Most Americans agree that everyone needs life insurance, according to the LIFE Foundation. It's something no one really wants to think about, but having some financial security for your family is a smart move. Even if you've carefully planned your finances and have set aside money for senior retirement, sudden changes could impact you or your family.
Determining how much life insurance you need will depend on your current lifestyle and how many people are dependent on you. Everyone's cost of living and lifestyles differ, so there is no amount of life insurance that is recommended for everyone. The best way to figure out how much life insurance to invest in is to think about current finances, savings and future costs.
Final expense insurance
While not the most enjoyable subject to talk about, final expense insurance is necessary coverage that all seniors should have. According to the Federal Trade Commission, the cost of a funeral can run more than $10,000. It will provide peace of mind for you and your family when it comes to covering these types of expenses. While final expense insurance will probably not need to be a lot, you will need enough to cover any outstanding debt and burial costs.