Prefer to watch? Click here to watch and listen on YouTube.

Insurance is about preparing for the unexpected — whether it’s an accident, illness, natural disaster, or other costly event. Ultimately, having insurance provides peace of mind.

Still, with so many options available, how do you know which types of insurance are truly necessary in retirement?

In this episode of Money Wisdom, Jake Doser, CFP®, CPWA® and Nicholas J. Colantuono, CFP® break down six insurance options to consider as you get closer to your retirement date.

Health Insurance

Whether you retire early or after age 65, navigating health insurance can involve some complex decisions. If you’re not yet eligible for Medicare, you may choose to continue your employer’s plan through COBRA. Or you could purchase insurance through the Affordable Care Act marketplace. These insurance plans often come with high premiums, so it’s wise to plan ahead.

If you’re applying for Medicare, it’s important to understand how each part works. Part A is typically free, while Part B comes with a monthly premium which can increase depending on your income. You’ll also want to consider supplemental plans to help cover out-of-pocket costs.

Long-Term Care Insurance

Part of health care planning is preparing for the possibility of a long-term care event. Many people who purchase insurance choose either a traditional long-term care policy or a hybrid policy.

While it does cover nursing homes and in-home care, traditional long-term care insurance can be expensive and hard to qualify for. Today, more people are turning to hybrid policies that combine long-term care benefits with annuities or life insurance.

Life Insurance

Life insurance is most important in cases where one spouse passes away early and the survivor needs financial support. Two main types of life insurance are term and permanent. Term life insurance lasts for a set number of years, typically 20 to 30 years.

Permanent life insurance comes in many forms, such as variable universal life, indexed universal life, and whole life. As you evaluate your existing policy with an advisor, you may consider new coverage depending on your specific situation.

Homeowner’s Insurance and Auto Insurance

Whether you rent, own a condo, own a home, or drive a car, the right insurance coverage is key. Home and auto insurance are not one-size-fits-all. Different companies have different strengths, and pricing can vary widely. That’s why it’s smart to work with an independent agent who can compare policies from multiple carriers.

Umbrella Insurance

An umbrella policy provides extra liability protection on top of your home and car insurance. You typically need a minimum amount of liability coverage to qualify for an umbrella policy. It can be an affordable way to protect your assets from large, unexpected claims or lawsuits.

Interested in building a simple, actionable plan for your retirement and investment success? Get your free Money Map book by texting “MAP” to 800-757-0436.