When retiring, I'm developing the following impressions for various types of insurance I can port to personal coverage (from employer benefits):

Assumption: Currently no debt / mortgage. Anticipate (per models) that savings + SS will be sufficient.

1. Term Life: Do not continue.

2. Supplemental Life and AD&D: Do not continue.

3. Long Term Disability: No income, not applicable. Do not continue.

4. Critical Illness: Continue (coverage / premium tbd).

5. Long Term Care (LTC): Continue.

Does this sound reasonable / typical? Are there considerations that should make me rethink this? I can port the life / supplemental ad&d upon retirement w/o a health check (will need a health check if I try to buy from scratch). But I don't think I need the coverage financially (at least at this point; perhaps if we buy a vacation home someday?).

Life insurance (to port what I have) seems to be about $100 per month for every $100K in coverage. And premiums will increase with age (by how much, I don't know).

Any thoughts?

Been retired 5 years now. Discontinued all you mentioned.
Never had a Long Term Care policy as part of my employer package so I can't speak to that item.
I did not replace my life insurance (work provided) as I viewed it as I had enough saved to retire. When my private term policy expired and they wanted to jump the rates I let that go as well as again I don't really have an insurance need.

Thanks for the insight. I never paid attention to it much. But recently have had it explained to me as income insurance (life insurance is a misnomer). No income, no need. If savings are sufficient, don't waste money. If savings aren't sufficient, shouldn't be retiring. The only exception may be if one knew with high confidence death was imminent.

It's comforting to get confirmation from SF (real people, first hand) rather than some quip I hear about in passing or read on the webz.

Life Insurance protects your dependents from your untimely demise. It also provides estate benefits if you have a significant estate. For most people, once they no longer have financial responsibility for their children, there need for life insurance decreases proportionally. Once you retire, Social Security and possibly pensions are the income streams that will change for your spouse when the first of you passes. If you need to protect against that situation, life insurance may be a need.

LTC insurance is not intended to provide actual care, it is designed to protect your nest egg from being spent on the care you will need to pay for. Many people want the insurance because they want to protect their assets. Are you worried about leaving a legacy with the money you have that you don't need? Do you want to leave an inheritance for your children? Are you concerned about spending all you assets in retirement and leaving your spouse in a bad spot because of the money spent on your end of life care? These are the considerations that are important. LTC is not the only answer to them, but it is an option. Also, how much will you pay for the insurance, and what is the benefit you will/possibly receive?

Thanks. This is helpful. So, again, don't need insurance (Life, AD&D) that is intended to protect income streams. And don't need if there are no expectations for inheritance. LTC is relevant as it may help protect savings/assets - especially the consideration about leaving the spouse in a difficult position.

So trend is still: I'll drop 1,2,3. Likely keep 4,5 for now.

I kept two life policies even though I have no descendants that will need the financial benefits. I changed the beneficiary to a Akita Rescue group that I've supported for years. For what I'd get back if I cashed them in I'll just pass on the benefits.

Agree with everything you have stated except for possibly Long Term Care (LTC) insurance.

It used to be LTC insurance was well-worth it. But today, the insurance companies have "tightened down" on the policies so much that it seldom works to your advantage.

For example, if you have to go to a nursing home, most policies today limit benefits to 2 or 3 years. After that, you're on your own. Years ago policies did not have this limit.

There is no possible scenario I have seen where the policy owner comes out ahead. The premiums are outrageous.

Accordingly, working with our financial planner, we decided to self-insure. We did this by investing roughly what the cost of the premiums would have been.

I'm not sure about no. 4. What are you protecting yourself against? Income should you become too sic? Well, your retirement cash flows will continue whether you're bed ridden or not, right? So yo're not protecting anything.

As for Long Term Care, look in your family history. If you can afford to continue paying it, it's worth the money especially if you have a history of dementia or alzheimers. Your future you will really thank your past you for being wise enough to pay for this benefit ahead of time.

Thanks guys - appreciate the comments.

LTC: in all probability this will never get used. And I think it expires after a certain age (70? 80? Need to check). But I do get some money back at that point (similar to life insurance). However, the risk to savings seems substantial should I need the coverage in the near term (w/in next 5-10 years). I think this type of care would more than double our expenses so I'm concerned about the long term viability of savings.

I'm no entirely sure what to do with this but I figure I'd keep at least for a year and revisit. It's not so much for me but to make sure my wife would stay financially viable should something happen to me.

Critical Illness: the coverage is low ($15K) and the premium is low. I was thinking this would be good for covering things like deductible up to out of pocket max and other things like hotel if a medical facility outside the home area was needed (but unlikely). I could probably cancel this. Was just thinking given the cost to keep it another year and then decide.

I appreciate the questions and considerations. Really helps me to consider different perspectives. I have a love/hate relationship with insurance.

On the Term life, you should consider if you drop it, that replacing it if needed will be difficult and expensive.

New coverage will have contestability for 2 years and your premiums higher, if you can get coverage.

You mentioned making sure your wife has financial stability, life insurance paid to her is not taxable income, and could be used to cover any and all outstanding funeral and medical expenses incurred in your final days, relieving her of that burden.

You can always reduce that coverage amount to reduce the premium say to $25,000 or so to help her during that period, or if you have kids, grandkids, pay it to them as a non taxable payout.

If they are minors, you need to setup a trust, insurance proceeds will not pay to a minor, but possibly to a parent for them with a court order of fiduciary responsibility.