There are all manner of changes going into retirement can bring about. One thing such changes sometimes lead to is a person making adjustments to their insurance coverage.
Among the issues changes in one’s insurance situation can raise are estate planning issues. So, it can be important to give proper attention to estate planning implications when it comes to certain sorts of retirement-related insurance changes.
One type of insurance-related change individuals sometimes make as they are approaching/entering retirement are changes regarding long-term care insurance, such as adding a long-term care policy or changing the type of long-term care policy they have. One reason why what a person’s long-term care insurance situation is can matter when it comes to estate planning is because long-term care insurance is far from the only thing that can be involved in preparing for expenses related to long-term care. There are various ways a person could array their estate plan towards the goal of preparing for long-term care costs.
So, when a person has long-term care insurance, it can be important for them to properly incorporate this coverage into their overall long-term care planning. Given this, when a person changes their long-term care coverage, it may necessitate making adjustments to the long-term care planning mechanisms in their estate plan.
Life insurance is another thing individuals sometimes make changes regarding in connection to retirement. What a person’s situation is regarding life insurance coverage can have major impacts on what financial support their loved ones will get upon the person passing away. This issue of financial support for loved ones is also one that is typically a significant one in estate planning in general. So, when making life insurance changes, it can be important for a person to think about how the change might impact their overall goals for their estate plan when it comes to helping their loved ones financially and whether they might want to make changes to their overall estate plan or life insurance policy beneficiary designations in relation to the life insurance change. Life insurance beneficiary designations are what controls what happens with life insurance proceeds upon a person’s death.
Experienced estate planning lawyers can provide guidance to individuals on estate planning matters related to insurance changes and other changes that can happen in connection to retirement.
Source: USA Today, “5 insurance changes to make when you retire,” Barbara Marquand, May 14, 2016