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How does retirement affect insurance?

Retirement is a big life change. Like any major event you should talk to your insurance broker and reassess your insurance needs. While retirement may not have a major impact on your insurance there are several ways it can affect your coverage. This is especially true if you plan to travel when you’re retired.

How Retirement Affects Your Car Insurance

The most obvious impact to your car insurance is that you will no longer be commuting to and from work. Removing your commute from your insurance will save you money!

You may also be driving less often which reduces the overall number of kilometres you spend on the road. That will also lower your insurance rates.

However if you plan to travel with your vehicle down to the US make sure you talk to your broker. Many insurance companies require notification. You may also need to get additional coverage if you are in the US for over a certain number of days (usually 30-60 days) or at all if your insurer doesn’t offer cross-border coverage.

If you travel and want to leave your car at home it’s a good idea to discuss your options with a broker. They can help you decide if you should change your coverage while you’re away as well as suggest things to keep your car safe.

How Retirement Affects Your Home Insurance

Unless you move or travel your home insurance will likely be unaffected by your retirement. This is a good time to review your coverage especially for your personal belongings.

If you move you’ll simply get a new home insurance policy. This may not always save you money as your home insurance premium is calculated based on the risk factors of your new home.

If you downsize into a condo or rental property you’ll need a condo or tenant policy. As your condominium or landlord’s insurance will protect the structure you only need coverage for what’s yours inside. Some policies also provide coverage for special assessments.

Remember that you need someone to check on your home every 24-72 hours (it varies depending on the insurance company). This is to ensure any damage is caught early before it can get worse. Failure to do so can result in denied claims and even cancellation of your policy.

How Retirement Affects Your Travel Insurance

Did you know that most travel insurance policies have a limit of the number of days that are covered? You’ll need to ensure you either have a multi-trip policy or one that specifically covers the length of time you plan to be away.

Travel medical insurance the most important part of travel insurance is especially important as you travel when you’re retired. While this only covers sudden and unexpected injury and illness (meaning medical tourism and some pre-existing conditions aren’t covered) it is essential due to the high cost of medical treatment. This is especially true if you plan to snowbird in the US.

Congratulations on your retirement! We hope you get to enjoy yourself and relax. Your broker is there to help you navigate the insurance side of this big change and for any other major life events you go through. If you have any questions talk to your broker.