For maintaining your financial well-being, owning the right and the most appropriate insurance policy is one of the most crucial elements. This is truer when you’re aging or when you’ve reached 50-60 years of age when you can no longer require different kinds of coverage which you had, you might be overpaying for other coverage or you could even be underinsured for some possible calamities. This is a crucial time when you should consider ways in which you can preserve wealth and reduce your financial risk. As per expert advisors, insurance is undoubtedly one of the most critical aspects of calculation.
Let’s take a look at the ways in which you could give yourself an insurance audit to analyze where you lie with regards to your insurance coverage.
Health insurance audit
One of the biggest medical insurance challenges that you face during your 50s and 60s, soon before Medicare kicks in at the age of 65 is to have the right workplace health insurance policy with a network that includes some of your most preferred doctors. It is very important to have the right coverage as studies from the Centers for Disease Control and Prevention reveal that 3 among 4 people who are above the age of 65 have chronic medical conditions which need to be treated. If you’ve chosen a health insurance plan which offers considerable out-of-pocket costs, you may shop around for MRI services and also leverage telemedicine.
As soon as you reach your Medicare age (65 years), with the same diligence, you should compare policies. Don’t forget to do your homework when you change from workplace insurance policy to Medicare. You may check the official site of Medicare for more information.
Disability insurance audit
If both you and your near ones depend on your income entirely, one more thing that you would need is disability income insurance. If you want to get the best deal, get it through work and the average disability policy will pay around 60% of your income, till a maximum payout of $5000 in one month. The disability policies meant for a short term cover injuries up to 2 years and the long term ones offer benefits till the age of 65. Try to extend the elimination period to keep costs down. You may even shorten the benefit period to reduce premiums.
Life insurance audit
Americans usually can do without life insurance but that doesn’t mean that they should go that way. It is by determining your financial situation that you should decide whether or not you need life insurance policy. If you have noteworthy monetary commitments and your near ones depend on your income, you should have some life insurance coverage. Premiums on term insurance become costlier as you age and whole life premiums stay fixed. You can thereby look for hybrid coverage where the policy will offer you benefits as long as you’re alive.
So, now that you’ve become a senior or you’re about to enter your retirement age, it is always better to go through a mid-life insurance audit to determine whether you have enough coverage for the rest of your life.