Empty Nesters and Their Changing Insurance Needs
As empty nesters, you have earned the right to make a few changes. Most parents put their wants and needs on hold for a couple of decades as they help with homework and chauffer children to endless events and activities. However, before converting that bedroom to a man cave or a yoga studio, take the time to reassess your insurance coverage.
Check Homeowner Coverage
Homeowners sometimes forget that their insurance policy needs to change along with their home and its contents. People in suddenly kid-free households might not realize how much the value of what they own could change as they redecorate for their new lifestyle.
As people clean out the unused toys, broken furniture, and other items collected over the years, they also tend to bring in better quality furniture and higher-end electronics. Many also use the extra time and cash they now have available to work on home projects that were impossible to complete when the house was full.
Take a complete inventory and reassess what replacing the home and its contents would cost because this is what a homeowner’s policy is supposed to cover. Contact an agent to also discover if fewer residents in the home, your current ages, or any other recent changes could qualify you for discounts.
Review Life Insurance
Life insurance is still a necessity for most people even if you have no children left in the home. Often a need for help exists with burial expenses and final medical costs. Insurance may be even more important if the empty nesters want to fulfill a desire to start their own business or if they worry about how estate taxes will affect the inheritance they will leave behind.
Consider your current level of debt and potential concerns like health problems or a disability that could leave one spouse as the sole earner. Couples can choose what works best for them. Sometimes a term life policy that lasts until retirement benefits become available is enough, while others may need the security of a whole life policy.
Adjust Auto Insurance
Empty nesters may have a lot to think about when reviewing their auto policies. Teenagers can cause rates to increase substantially, and the rate does not automatically drop when they reach adulthood. Remove adult children from the policy if they now live on their own and have their own vehicles.
The changes may not end there because many people use this time to buy their dream vehicle or make some recreational purchases like an ATV or boat. Travel is also a popular pastime for empty nesters. Whether that travel is by car or RV or on a plane, this can lead to some insurance considerations like rental car coverage, roadside assistance, and more.
Career changes can also affect auto insurance costs and needs. Fewer miles driven during retirement can help to lower rates. A dream job or new business that puts people on the road more could mean you need to increase the coverage to stay protected.
Remember Health Insurance
Most parents continue to pay the health insurance costs for their children until they graduate and find their first full-time job with benefits. Once this stage arrives, consider becoming self-insured when you start your own business or take an early retirement.
Review your health insurance policy even if that time has not come. Many universities offer some insurance to students, and extras like vision care or prescription costs may be manageable for adult children to cover on their own.
Always ask questions of your insurance agents to learn how life changes affect insurance needs. At Wolf Insurance Agency, we work with our clients to help them find the right plan and carrier to match where they are in life. Contact us to compare your current coverage rates with what our carriers offer or let us help you to get the coverage you’ve lacked.