A sound retirement plan is like a well-built house: Your savings form a solid foundation; retirement accounts are spacious rooms furnished with a balanced mix of stocks and bonds; Social Security and other guaranteed income provide insulation; and life, long-term-care and other insurance policies keep the rain out. But what if that roof starts to leak? Isn’t it time for a thorough insurance inspection?
While it’s always a good idea to review your insurance coverage every few years, a coverage check-up is especially important as you approach retirement. Perhaps a life-insurance policy that you no longer need can be transformed into a stream of guaranteed lifetime income.
Maybe you’ve overlooked long-term-care coverage that could prevent a nursing-home stay from wiping out your savings. And if you’re not regularly shopping around for better rates, you may be missing out on big savings on homeowners, auto and other coverage. (We’ll save health insurance, which calls for an annual check-up, for a separate article.)