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Insurance Needs for Empty Nesters and Retirees3/25/2020

Presented by the MEMBERS Financial Services Program* located at SLFCU. The MEMBERS Financial Services program is offered through CUNA Brokerage Services, Inc.*, a broker/dealer focused on serving credit union members. CUNA Brokerage Services, Inc. is an affiliate of CUNA Mutual Group. For more information about CUNA Brokerage Services, Inc., please visit cunabrokerage.com.

When your children go out on their own in life, financial priorities become more focused on preparing for retirement. At this stage, you may likely be at the height of your earning power and fast approaching peak savings as you lay the groundwork for retirement. During this final leg toward retirement – and throughout your retirement period – wealth protection is critical.

Asset preservation should be a function of your investment strategy and include a comprehensive insurance approach to protect you against an array of financial risks – especially health care.

In addition to wealth protection, you may also now be seriously contemplating a number of important estate and legacy objectives.

HOME

Even if your mortgage is paid off – releasing you from the lender’s requirement to have homeowners insurance – it remains important to consider coverage against property loss and exposure to personal liability. Now is an ideal time to review your policy as the cost of replacing your home and belongings contained therein may have grown over the years.

Also, consider an umbrella policy, which is designed to help protect against the financial risk of personal liability.

HEALTH

There are several key health insurance issues facing empty nesters and retirees. If you retire before age 65, when Medicare coverage is set to begin, you will need coverage to bridge the gap between when you retire and when you turn 65. If your spouse continues to work, you may want to consider being added to their plan. However, you may need to wait until the employer’s annual enrollment period.

Alternatively, you may also purchase coverage through a private insurer, HealthCare.gov, or your state’s program. Once you enroll in Medicare, you should consider purchasing Part D of Medicare, the Medicare Prescription Drug Coverage plan, which can help you save money on prescriptions.

Additionally, you may want to think about other Medigap insurances, which are designed to pay for medical care not covered by Medicare. Medigap plans are bought through private insurance companies and best purchased within the first six months of turning age 65 since no health exam is required during this period.

DISABILITY

This coverage may continue until you retire. When you stop working, you should consider canceling your disability insurance as the need for it has expired.1

LIFE

The financial obligations that drove your life insurance needs while you were raising a family may no longer be relevant. However, you may find new needs arising from estate issues, such as liquidity, creating a legacy, etc. Several factors will affect the cost and availability of life insurance, including age, health, and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. If a policy is surrendered prematurely, the policyholder also may pay surrender charges and have income tax implications. Consider determining whether you are insurable before implementing a strategy involving life insurance. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.

EXTENDED CARE

For some, extended care insurance is a priority in this stage of life. With the expense of children behind you, you can now turn your focus to buying protection against what may potentially be the most significant health care expense you are likely to face in retirement.

Designed to pay for chronic, long-lasting illnesses and regular care, whether at home or in a nursing home, extended care insurance coverage is critically important since Medicare doesn’t cover most of these costs.

WHICH COVERAGE IS RIGHT FOR YOU?

Many factors come into play when deciding what type of insurance will best suit your needs. The best thing to do is speak with a trusted and qualified financial professional who can assist you in looking at all the factors and help you to choose the policy that will work best for you.

Contact MEMBERS Financial Services to make a no-cost, no-obligation appointment at an SLFCU branch, or contact a financial professional online.

  • Juan Tabo, Jefferson, Cottonwood, Paseo, Rio Rancho, or Los Lunas branches: Call 505.237.3930
  • Edgewood, Kirtland, Tech Park, or Livermore branches: Call 505.237.7330

To learn more about the background of your financial professional and the firm for which they work, visit BrokerCheck by FINRA.

1 chicagotribune.com/business/success/terrysavage/tca-disability-insurance-can-protect-you-from-unthinkable-20190410-story.html [4/10/19]


This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.

* MEMBERS Financial Services' Financial Professionals are registered representatives of CUNA Brokerage Services, Inc. Representatives are registered, securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor, which is not an affiliate of the credit union. CBSI is under contract with the financial institution to make securities available to members. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No Financial Institution Guarantee. Not a deposit of any financial institution. CUNA Brokerage Services, Inc. is a registered broker/dealer in all fifty States of the United States of America. FR-2973049.1-0220-0322



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