In: Finance
What role will insurance play in your retirement planning? What kinds of insurance, if any, will you buy and why?
One of the big tricks for having a successful retirement is to make sure you have enough cash flow to pay your bills and still be able to enjoy life. Few people have pensions any more. Social Security only helps so much. But if structured the right way, a life insurance policy could be the perfect life preserver in retirement. The role or use of insurance that play in retirement planning is :
Kinds of insueinse for retirement planning :
- Long-term care insurance :It is the onecoverage area that all forms of Medicare tend to skimp on is long-term care. Medicare only covers long-term care costs that have a clear medical component and meet certain requirements.
-An annuity insurance is an insurance product that basically protects you against running out of money. You hand over a pile of cash to the insurance company in exchange for payments in the future. How those payments are calculated and how long you get them depends on the type of annuity you get; there are dozens of options, some of which are more suitable than others.
-Original Medicare includes many basic medical expenses, but it has some pretty gaping coverage holes. That's why nearly all retirees get either a Medigap or a Medicare Advantage plan to provide the missing coverage. Medigap is a supplement to original Medicare; Medicare Advantage actually replaces original Medicare -- plus it comes with additional coverage for common healthcare expenses.