INSURANCE
First Baby Boomers Are Reaching Retirement Age In Shaky Economic Times; Insurance Can Provide Important Financial Protection
group of Americans who came of age in the 1960s and early 1970s will likely have insurance questions and concerns that dif- fer from those of their parents’ generation, according to the Insurance Information Institute (I.I.I.). According to research by the Pew Re-
T
search Center Populations Projections, every day for the next 19 years about 10,000 Americans will turn 65, and by 2030 18 percent of the nation’s population will have reached this threshold. The Pew data also indicates that many boomers, those born between 1946 and 1964, have a very gloomy outlook on their personal finances. Compared with other age groups, they are the most likely to say that they have lost money on investments since the most recent recession began in December 2007, and that their finances have worsened in the recent years. In ad- dition, a higher number of boomers re- ported cutting spending in the past year, as compared with those already age 66 and up.
“Baby boomers have reinvented every
life stage they have experienced and are likely to approach retirement and aging differently than previous generations,” pointed out Jeanne M. Salvatore, senior vice president of Public Affairs for the I.I.I. “Given this generation’s understand- able concerns about their personal financ- es, insurance can provide an important fi- nancial safety net when it is purchased properly.”
Fortunately, there are ways for people
over 65 years old to reduce their insurance costs, while getting the important finan- cial protection they need for themselves and their families. The I.I.I. provides the following insur- ance and safety tips for aging boomers:
he first of the baby boomers will turn 65 years old this year. This huge
Take a Look at Your Car Older drivers have a higher rate of fatal
crashes, based on miles driven, than any other group except young drivers. The primary reason for this high death is that older drivers are more easily injured than younger people and are more apt to have medical complications and die of those injuries. It is important that your car be properly maintained in order to maximize its safety potential on the road. Older drivers should consider driving a car that is both easy to drive and provides the most physical pro- tection for the occupants. When selecting a safe car, you should also check insur- ance costs, as the choice of a car can im- pact the cost of coverage. If you are driving an older car, you can
consider dropping the optional compre- hensive and collision coverage on the ve- hicle, as this will also save money. As a general rule, if your car is worth less than 10 times the premium you are paying, the additional coverage is not cost effective. It is important, however, to continue to have adequate amounts of liability insur- ance in order to protect your assets in the event of an accident.
Get Driver Training As we age, there are three key areas
where most of us are likely to suffer some sort of impairment: vision; cognition, which includes memory loss; and flexibil- ity declines, due to diseases such as arthri- tis. Fortunately, there are defensive driv- ing classes specifically designed for aging drivers. Many insurance companies will also give a discount for taking an ap- proved driving safety course.
Keep Your Home Insurance Up-To-Date
It is easy to become complacent about
insurance when if you have lived in the same home for a long period of time. However, for most people, their home is their greatest financial investment so it is important to make sure that the dwelling and its contents are protected with the right amount and type of insurance. If you have made a major improve-
ment or upgrade to your home, you may need more insurance coverage. Home- owners rarely upgrade their house without purchasing new items to put in their resi- dence. And even those who have not made any upgrades to their home are likely to have accumulated a lot of things over the years, so it is important to discuss your home insurance needs with your agent or insurance company representative at least once a year. And, remember, even if you have paid
off your mortgage you should keep your homeowners insurance—even when no longer required to do so by the bank—be- cause rebuilding a structure, and replacing your personal belongings, can cost hun- dreds of thousands of dollars. Depending on your location, you may also need sepa- rate flood and earthquake insurance, as these disasters are not covered under stan- dard homeowners insurance policies. Lastly, if you are an empty nester and
are considering selling your home and renting or moving into a condo or co-op, you will still need insurance protection in the form of a renters or co-op/condo in- surance policy. These polices will not only insure your personal possessions, but also provide liability insurance and cover additional living expenses in the event of a fire or other disaster.
78
PROFESSIONAL WOMAN’S MULTICULTURAL MAGAZINE
CELEBRATING 11 YEARS OF DIVERSITY
WWW.PROFESSIONALWOMANMAG.COM
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84