Know Your Options As A Retiree aon com
Every life insurance policy has an owner, a beneficiary, and benefit characteristics. And, of course, there’s the need for which you bought the policy in the first place – usually the financial help of those who depend on you and would financially suffer at your death. If you’ve held your policy for years, then it’s time to review these four aspects since time tends to change things.
In times past, the idea of retirement was looked upon with a great deal of anticipation. Thanks to the effects of the worldwide recession, retiree aon com today are facing circumstances that they did not anticipate. This includes a reduction in pension benefits from past employers and other factors that make maintaining an equitable standard of living a little more difficult. For this reason, it helps to know the options that are open to you as a retiree and make the best possibly use of those opportunities.
While the original plan may have been to remain in your home for several more years, looking into different types of retirement facilities may be in your best interests. If you live in a larger city, there is a good chance that there are retirement villages that offer the options of smaller but functional living spaces. This approach can often allow you to have plenty of room for your needs, continue to enjoy your independence and also take advantage of the amenities offered within the community. As an added incentive, you may even make some new friends.
If you do prefer to remain in your own home, look into any aged care services that may be available. This could include everything from having a medical professional come by a few times each week to check on your health to engaging the services of a live in provider. Make sure to utilise a service that is line with the general state of your health. Keep in mind that in some cases, you may qualify for government assistance with the cost, or even find a local agency that is willing to help you secure the services required at a reduced rate that is in line with your income.
Planning for the Unexpected
The sad truth is that illness and infirmity can affect anyone, including retirees. If you don’t have family nearby who can step in and protect your interests, you should consider securing some type of guardianship services. Services of this type can work with you to create legal arrangements that ensure your wishes are respected in the event that you are incapacitated due to illness or some sort of serious accident. Having someone who can make medical decisions on your behalf will go a long way in helping you avoid a prolonged period of pain if the changes for recovery are not good. At the same time, this arrangement can also help minimise the pain and suffering that your loved ones deal with as they watch you slowly waste away.
Policy ownership issues:
Having reached retirement, you may also have acquired a considerable amount of wealth since you first acquired your policy. What remains in your name and under your control becomes part of your estate and subject to estate tax at your death. Although your beneficiary will receive your policy’s death benefit tax free, your estate will have to pay tax on its value. So, you may want to transfer your ownership to another or to a trust to avoid any possible estate tax your ownership of it would produce on your estate.
The passing of time often alters who should be the assigned beneficiary. When a marriage breaks down, the ex-spouse should be replaced – unless it remains a court-ordered assignment. Generally, a death benefit must go to the assigned beneficiary – no matter how your intentions may have changed. Perhaps, one of the beneficiaries has died. The death of the only beneficiary may force the death benefit to go through probate court to determine who should receive it. So be sure to update who should be your policy’s beneficiary.
Policy benefits issues:
Depending on the type of policy, its performance characteristics may have changed for the worse. Your universal life policy may show poor interest rate performance or your whole life policy dividends may have decreased. Should you consider switching policies?
If you’re paying premiums, perhaps you ought to switch to a paid-up version of with a lower death benefit.
The need for a policy issue:
It may be that the need for which you originally bought the policy is no longer applicable since your kids are financially independent and your current wealth can adequately provide for your wife. If so, you may find another reason to hold the policy such as a legacy or for helping with final expenses when you die.
If you don’t need it at all, you may consider cashing it in or gifting it to a beneficiary or charity. It’s always a good idea to review all aspects of your life insurance policy when your retirement finally arrives.