Retirement changes your income, your schedule and often where you live. Your insurance needs change too. Employer health and life coverage usually ends, Medicare deadlines approach, and you may drive less or downsize your home. This checklist helps you review coverage in the year before and after you retire. It's general information; for Medicare decisions, also use official resources and licensed Medicare advisors.
Health insurance
If you retire before 65
Employer coverage usually ends when you retire, unless your employer offers retiree health benefits. Options include:
- COBRA, which generally lets you continue employer coverage for up to 18 months at full cost. See the U.S. Department of Labor.
- Marketplace coverage through Covered California or HealthCare.gov. Losing employer coverage typically qualifies you for a special enrollment period, and premium tax credits are based on income, which may be lower in retirement.
- A spouse's employer plan.
Medicare at 65
- Initial enrollment period: generally seven months, starting three months before the month you turn 65 and ending three months after. See Medicare.gov – When coverage starts.
- Late enrollment penalties can apply to Part B and Part D if you don't sign up when first eligible and don't have other qualifying coverage.
- Still working at 65? If you have coverage through current employment, you may be able to delay Part B without penalty. Check the rules carefully.
- Coverage choices: Original Medicare (Parts A and B) with a Medigap supplement and Part D drug plan, or a Medicare Advantage plan. Compare networks, drug coverage and out-of-pocket costs.
In California, the Health Insurance Counseling and Advocacy Program (HICAP) offers free, unbiased Medicare counseling. See the California Department of Aging – HICAP.
Life insurance
- Employer group life usually ends at retirement. Some plans let you convert or port coverage, often within a short window and at a higher cost.
- Do you still need it? If your spouse depends on your pension or Social Security, if you still have a mortgage, or if you want to leave money to heirs or cover estate taxes, life insurance may still make sense.
- Existing policies: review whether to keep, reduce or adjust permanent policies. Don't cancel a policy before reviewing options and possible surrender charges.
- Beneficiaries: update beneficiaries on life insurance, annuities and retirement accounts. See our term vs. whole life guide.
Long-term care
Medicare generally doesn't cover long-term custodial care, such as help with bathing and dressing in a nursing home or at home. See Medicare.gov – Long-term care. Options include:
- Traditional long-term care insurance, which is easier to get while healthy.
- Hybrid life and long-term care policies.
- Self-funding from savings.
- Medi-Cal in California (Medicaid in other states), which may cover long-term care for people who meet financial and medical requirements.
The California Department of Insurance publishes a guide to long-term care insurance. Start planning in your 50s or early 60s.
Disability insurance
Once you stop working, you no longer need income replacement, so disability insurance usually ends.
Auto insurance
- Drive less? Tell your insurer about lower annual mileage. You may qualify for a lower rate or a low-mileage discount.
- Mature driver discount: in California, drivers 55 and older who complete a DMV-approved mature driver improvement course qualify for a discount, generally for three years. See the California DMV – Senior drivers.
- One car or two? Downsizing can save money.
- Keep strong liability limits. Your retirement savings are worth protecting.
Homeowners insurance
- Downsizing or relocating: update your coverage, and look at hazards in your new area, such as wildfire, flood or hurricane risk.
- Second homes and snowbird homes: these need their own coverage. Vacancy rules may apply when you're away. See our vacant home insurance guide.
- Aging in place: safety upgrades such as grab bars, better lighting and step-free entries can prevent falls, a leading cause of injury for older adults.
- Home-based business or consulting: see our home-based business insurance guide.
- Rentals: if you rent out a property or a room for income, update your coverage. See our short-term rental guide.
Umbrella insurance
Retirees often have significant assets and more free time for travel, volunteering and hosting grandkids. A personal umbrella policy adds liability protection above your home and auto policies.
Travel insurance
Original Medicare generally doesn't cover care outside the U.S. Some Medigap plans include limited foreign travel emergency coverage. Consider travel medical insurance for trips abroad.
Avoiding scams
Seniors are frequent targets of insurance and annuity scams. Verify any agent's license with your state insurance department. In California, use the CDI license lookup. Never pay by gift card or wire, and be wary of pressure to replace existing policies.
Retirement insurance checklist
A year before retiring
- ☐ Plan health coverage until Medicare
- ☐ Learn your Medicare enrollment window
- ☐ Review employer life insurance conversion options
- ☐ Consider long-term care planning
At retirement
- ☐ Enroll in COBRA, marketplace coverage or Medicare on time
- ☐ Update beneficiaries
- ☐ Tell your auto insurer about lower mileage
- ☐ Take a mature driver course for a discount
Ongoing
- ☐ Review homeowners coverage when you downsize or relocate
- ☐ Consider an umbrella policy
- ☐ Plan for travel medical coverage
- ☐ Verify the license of anyone selling you insurance
Contact Alishahi Insurance or call (877) 711-4545 for a retirement coverage review.
Frequently asked questions
When should I sign up for Medicare?
Your initial enrollment period generally runs for seven months around your 65th birthday: three months before, the month of, and three months after. Late enrollment penalties can apply.
Does Medicare cover long-term care?
Medicare generally doesn't cover long-term custodial care. Consider long-term care insurance, hybrid policies, savings or Medi-Cal/Medicaid eligibility.
Do I still need life insurance after I retire?
It depends. It may help if a spouse relies on your income, you have debts, or you want to leave money to heirs.
Is there a car insurance discount for seniors in California?
Drivers 55 and older who complete a DMV-approved mature driver improvement course qualify for a discount, generally for three years.
Where can I get free Medicare counseling in California?
HICAP, through the California Department of Aging, offers free, unbiased Medicare counseling.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.