An important part of every retirement portfolio, life insurance offers a death benefit and living benefits with some policies. It is a unique vehicle that allows tax-free account value accumulation, allows you to access your money tax-free, and, when you die, blossoms in value and transfers income tax-free.
For those of you who think life insurance is only to be used to transfer wealth to your heirs, it is time for you to have a policy review.
It is true that term life insurance is used to transfer wealth to beneficiaries if a policy owner passes during the term of the policy. Policies have had many developments since the term policy was introduced way back when. Cash value is the additional feature that helps policy owners realize cash accumulation.
Whole Life, Universal Life, and Indexed Universal Life policies allow you to pay for a death benefit, with an added savings element. Depending on the type of policy you choose, your money can be growing safely without a loss of principal.
When was the last time you updated your life insurance?
Annuities offer a different option unlike investing in the stock or bonds market.
An annuity is a contract between you and an insurance company that is designed to meet retirement and other long-range goals, under which you make a lump-sum payment or series of payments. In return, the insurer agrees to make periodic payments to you beginning immediately or at some future date.
Just like your birthday, Open enrollment for Medicare comes around every year with each health insurance company rolling out some changes to the plans available. If you are 65 or older, have certain disabilities or end-stage renal disease, you could be eligible one of these health policies.
It can be difficult to navigate the entire market for all the plans. Doctors may have changed networks, your retirement may move you from your current service area, or your prescriptions may have changed. Whatever the reason, we help you make an informed decision when choosing a Medicare Supplement or Medicare Advantage policy.
There are four parts to Medicare
Medicare Part A (Hospital Insurance)
- Helps cover inpatient care in hospitals
- Helps cover skilled nursing facility, hospice, and home health care
Medicare Part B (Medical Insurance)
- Helps cover doctors' and other health care providers' services, hospital outpatient care, durable medical equipment, and home health care
- Helps cover many preventative services to help maintain your health and to keep certain illnesses from getting worse
Medicare Part C (also know as Medicare supplement or Advantage)
- Offers health plan options run by medicare-approved private insurance companies. Medicare Advantage Plans are a way to get benefits and services covered under Part A and Part B. Most Medicare Advantage Plans cover Medicare prescription drug coverage (Part D). Some Medicare Advantage Plans may include extra benefits for an extra cost.
Medicare Part D (Medicare Prescription Drug Coverage)
- Helps cover the cost of prescription drugs
- May help lower your prescription drug costs and help protect against higher costs
- Run by medicare-approved private insurance companies
For more information click here to visit Medicare Planning
Determine your retirement lifestyle
You must be realistic. How much of a lifestyle change will you need to implement? Too many retirees underestimate their true cost of living without a paycheck. Keep a full expense report at least 6 months prior to retiring.
What are your retirement debt expenses?
The lower the better as you approach retirement. Entering retirement debt free will allow you to enjoy retirement instead of just enduring it. Have money to enjoy your GO years.
Review all insurance coverages
Health, Medicare options, life insurance, Home & Auto. Medicare, Home and Auto Insurances should be reviewed and sent out to competitive companies annually for quotes. Current or new life insurance should be discussed with a professional – someone with experience – not the internet!
Review wills, trust, beneficiaries, powers of attorney
A must to make sure your health decisions are controlled by a person you trust and will follow your wishes. Also, that your assets get to the right family members and not to the State.
Develop a realistic retirement income plan
Know that each year you age, a higher percentage of your assets should absolutely be protected in fixed income. You must be proactive.
A minimum of two sources of income is highly recommended
One source is not enough to protect you from the pitfalls in life. Time and time again retirees liquidate an investment to cover an unforeseen life issue. That investment is now gone forever never producing future income.
Know when and how to apply for Social Security
A mistake could cost you many dollars in the future income
Always have an emergency fund
Unexpected costs can happen quickly. A buffer will ensure that you avoid using assets earmarked for income or growth. Setting aside 3 to 6 months’ worth of expenses is recommended.
Mitigate risks with your savings in the Stock Market
If the market were to dip or crash, where would that leave your retirement savings? The decisions you make today will have a positive or negative effect on your retirement plan later on. How you prepare yourself will determine the outcome.
When liquidating an investment – know the tax implications
Ask questions of a qualified tax professional no matter how simple the question might seem.
Don’t go broke spending your future retirement on your kids
Again, you are no longer working and your assets took many years to acquire.