Seniors Can Protect Assets and Family with Insurance Coverage
Posted on Mon, Aug 02, 2010
From: By Aimée Carrier at AAA Horizons
Senior citizens have unique health and wealth concerns. It’s therefore even more important to have the right insurance coverage for your lifestyle. To preserve your assets and your peace of mind, Frank Doyle, Senior Vice President of AAA Southern New England’s Insurance agency, offers this advice on which insurance to consider.
Medicare and Supplemental Insurance: There have been many changes to the Medicare program in recent years. Stay informed about any new developments. You should review your health plan and prescription plan (part D) every year to ensure that you have the appropriate coverage. You should also make sure that the plan you select has affiliated doctors and hospitals in the place where you live and/or visit most often.
Life Insurance: It’s time to review your policy to make sure you have the proper levels of coverage based on today’s estimated funeral expenses, as well as any medical bills or estate taxes your family might have to pay. If you do not have insurance, look for a guaranteed policy that will be issued regardless of age or health.
Long-Term Care Insurance: An estimated 43 percent of Americans over age 65 will require long-term care during their lifetime at a cost of more than $50,000 per year. Medicare and health insurance specifically exclude long-term care. Insurance coverage is appropriate for those wanting to protect their assets and remain in control of their own decisions. It’s also a great time to purchase this insurance. Many carriers have developed new policies that offer enhanced benefits such as cash payments to help family members care for you at home. There are also new tax laws that allow tax-free exchanges from annuities and life insurance policies to pay for long-term care insurance. There are also AAA member discounts available as well as workshops that provide more in-depth information about long-term care insurance.
There are other insurance considerations for senior citizens beyond the obvious age-associated coverage, Mr. Doyle said.
Automobile Insurance: You should review the use of your car with an insurance professional every year. Senior citizens often drive less frequently and their cars are usually paid for, both of which can result in savings on an insurance policy.
Homeowners Insurance: If you move south for the winter, you might not have the coverage for your home that you expect. Find out whether your home is considered occupied rather than vacant when you are not home for extended periods. Vacant homes often have less coverage.
Flood Insurance: Some homeowners let their flood coverage lapse once the mortgage has been paid off, not realizing that their homeowner policies don’t cover damage from flooding. The floods in New England this March left many with damaged belongings and no insurance.
Travel Insurance: Unfortunately, a side effect of age is unpredictable health. When you book travel, you should seriously consider travel insurance to protect you in case of trip interruption or cancellation.
Travel Medical Insurance: If your health plan requires the use of a local network of doctors and hospitals, you may need a more flexible plan that covers any medical expenses if you become ill while traveling outside the network and/or outside the country.