Sending your last child off to college or a new career can be bittersweet. You’re leaving behind your role of a day-to-day parent, but also gaining more time to do other things you love to do. While you’re going through this transition, it is important to consider how you want to change your insurance coverage to fit your new lifestyle.
Health insurance
If your children are still dependent on your income, they can remain on your health insurance plan until age 26. Once your children leave your plan, it’s a good time to re-evaluate your health insurance to make sure it meets your needs.
- You may want to add optional coverage types, like dental or vision.
- If you have an individual policy, you may also want to shop for a new insurance provider that better fits your needs and budget.
- Be sure to talk to an insurance advisor before you cancel any current policies, however. It may not be as easy as you think to switch plans.
Life insurance
Once your children leave home and become financially independent, re-evaluate whether you still need life insurance, or need to adjust your benefit amount.
- If you’re single, you may no longer need life insurance, unless you have other loved ones who are financially dependent on you.
- If you’re married and have a spouse who is dependent on your income, you may want to keep your policy to help provide for him or her.
Long-term disability insurance
- As long as you’re still dependent on your income to pay for daily living expenses, it’s wise to continue carrying LTD insurance, in the event of a long-term illness or injury.
- If you no longer have children in your home, you many not need as much coverage because you no longer have to pay their living expenses. However, you’ll still want to keep enough coverage for your own expenses. Talk to your insurance advisor to see if you can lower your monthly benefit coverage, which could lower your premium.
