Empty nesters often find themselves with new freedoms and a changing financial picture. With fewer people in the house, now is the perfect time to reassess your insurance coverage. Adjusting your policies could save money and provide the right protection for this next chapter. From rightsizing your home insurance to reviewing life and health coverage, here’s what to consider.

Homeowners Insurance: Rightsizing Your Coverage

If you’re downsizing to a smaller home, condo, or townhome, update your homeowners insurance to reflect the new structure and replacement costs. Condos often require an HO-6 policy covering personal property and interior structures, while the building’s master policy handles exterior areas. Notify your insurer about address changes, new security systems, or neighborhood risk factors. Review your personal property coverage by creating a current inventory of belongings with photos and receipts.

Auto Insurance: Adjusting for Fewer Drivers

Once your children have their own auto insurance, formally remove them from your policy. Confirm they’re adequately covered first, then request an updated premium quote. You may qualify for a lower rate or multi-car discount. If you drive less, explore low-mileage discounts or telematics programs that reward safe driving habits. Review your liability limits to ensure they still protect your assets.

Health Insurance: Navigating Post-Child Coverage

As your children age out of your health plan, help them find coverage through an employer, a marketplace plan, or other options. Then, revisit your own policy to make sure it fits your current health and lifestyle needs. You may benefit from switching to a different plan or adding supplemental policies like dental, vision, or long-term care insurance. Factor in potential long-term care costs in retirement planning.

Life Insurance: Reassessing Your Needs

If your children are independent and your mortgage is paid off, it might be time to reduce or eliminate life insurance coverage. However, ensure your spouse or partner has enough coverage to maintain their lifestyle without you. Consider how life insurance can support estate planning strategies like funding charitable giving or covering estate taxes. Work with an estate planning attorney or financial advisor to integrate into your overall plan.

Umbrella Insurance: Expanding Liability Protection

An umbrella policy offers extra liability coverage beyond your homeowners and auto insurance. Make sure your current auto and homeowners policies meet the minimum coverage required for an umbrella policy. As your lifestyle becomes more flexible, such as participating in more social events or international trips, you may also face new liability risks that umbrella insurance can help cover.

Travel Insurance: Protecting Your Adventures

Consider travel insurance if you’re planning regular trips. Look for comprehensive coverage that protects against trip cancellations, medical emergencies, and lost luggage. Make sure the policy covers preexisting conditions and all planned activities, like skiing or hiking, and consider adventure travel insurance if you plan to engage in high-risk activities.

Financial Planning and Insurance Integration

Use this opportunity to align your insurance strategy with your broader financial goals. A financial advisor can help you assess risks, identify gaps, and ensure your insurance complements your retirement planning. Consider bundling policies with one or two providers to save money and simplify managing your plans.

Regular Policy Reviews

Make insurance reviews an annual habit. Life changes, like retirement, moving, or taking on new hobbies, can all affect your coverage needs. Stay informed about changes in insurance regulations and market trends by subscribing to financial newsletters.

This life chapter can bring newfound freedom, and taking these steps to stay prepared can give you the peace of mind to enjoy it.

Contact us today to review your coverage and align it with your goals for the future.