But as you prepare to reap the rewards of retirement, we’d like to make you aware that there are likely going to be changes regarding your insurance coverage. These can greatly affect your finances – and your life – going forward. It’s important to take steps now so you don’t have gaps in coverage or miss important savings opportunities.
Review Your Coverage – Avoid Gaps
If you’ve been working for an employer, many of your insurance needs have likely been covered by your employee benefits package. You may have health, life, dental, vision and disability coverage from your employer. But you’ll probably find that once you leave your employer, you’ll lose access to these or other insurance benefits.
Before you retire, it’s important to review your employer-provided coverage. If you know you’re going to lose essential coverage, you’ll want to start planning for that now. You may wish to contact one of our advisors so they can bring you up to speed on your best options and help you avoid coverage gaps.
Don’t Pay For What You Don’t Need
Likewise, if you’ve purchased one or more of your own individual insurance policies, it’s important to review those plans as well. You may find there are some types of coverage you no longer need.
For example, if you stop working and start taking your income from your retirement savings, your disability coverage may no longer be needed. It’s a good idea to discuss this with a licensed insurance professional so you’re not paying for coverage which is no longer necessary.
Life Insurance Needs Can Change Too
For years you’ve probably heard how important it is to have life insurance, especially if you have a family. But If you’ve accumulated enough savings and do not have individuals depending on you for financial support, you may be able to reduce the amount of life insurance you carry.
If you’ve had life insurance through your employer and will lose your plan after you retire, we may be able to help you find new coverage. Even physicians in their seventies can apply for a ten-year level premium term life policy with some additional underwriting through TMA Insurance Trust.
Find Your Best Medicare Options
Typically, health insurance is the coverage that is most affected by retirement. For most physicians who retire, Original Medicare will be their choice for health insurance. But you should know that Medicare only covers about 80% of health care expenses for hospital stays and doctor visits. The other 20% of these expenses is paid by the patient.
This is why most people opt to secure a Medicare Supplement policy that covers many of the out-of-pocket costs not covered by Medicare.
And if you leave your traditional health insurance plan, you may also lose prescription drug coverage. A Medicare Part D plan can help defray the cost of prescription drugs. Please call us to discuss your Medicare options.*
Take A Look At Long-Term Care
There is another cost that will not be covered by Medicare – that is the expense of daily custodial care when one can no longer perform activities required for living independently. This is where Long-Term Care (LTC) insurance can play a role. It provides financial benefits for one’s daily living and personal care. If you don’t currently have a Long-Term Care policy, talk to us about your options.
Get Dental, Vision And Hearing Coverage
Many employers provide dental, vision, hearing, and other supplemental insurance coverage as part of their benefits package. When you leave your employer, you may lose those benefits. TMA Insurance Trust can help you find replacement coverage for yourself and your family. Or if you’ve never had this kind of coverage, we can help you find a plan (or plans) that work for you.
Spouses Can Find Extra Savings
If your spouse is also about to retire, be sure to ask about opportunities that could help you both take advantage of special savings and discounts. The right insurance choices can help you save thousands of dollars over the course of your retirement.
Our advisors have years of experience helping physicians when they transition to retirement. They can help ensure you have the appropriate coverage for what is the next and hopefully most rewarding chapter in your life. Call us for a cost-free consultation at 800-880-8181 Monday through Friday 8:00 to 5:00 CST.
For over 60 years, TMA Insurance Trust advisors have been serving Texas physicians, their families and staff. TMA Insurance Trust prides itself on offering unbiased information and strategies to members, along with exclusive group rates on a range of the highest-rated plans in the industry.