Insurance Needs Assessment: For Empty Nesters and Retirees

Although retirement should be a priority throughout your lifetime, when children leave the house, financial priorities tend to become more focused on preparing for retirement. At this stage, you may very likely be at the height of your earning potential and fast approaching peak savings as you lay the groundwork for retirement. During this final leg toward retirement, and throughout your retirement years, wealth protection is critical.

The preservation of your assets may not be solely a function of your financial planning and investment strategy but may also include a comprehensive insurance approach to protect you against an array of financial risks, most especially health care.

In addition to wealth protection, you may also now be seriously contemplating a number of important estate and legacy objectives.


Even though your mortgage may be paid off, and thus released of the lender’s requirement to have homeowners insurance, it remains important to consider coverage against property loss and exposure to personal liability. Now is an ideal time to review your policy as the cost of replacing your home and the belongings contained therein may have grown over the years.

Also, consider an umbrella policy, which is designed to help protect against the financial risk of personal liability.


There are several key health insurance issues facing empty nesters and retirees.

If you retire prior to age 65 when Medicare coverage is set to begin, you will need coverage to bridge the gap between when you retire and when you turn 65. If your spouse continues to work, you may want to consider getting yourself added to his or her plan, though you may need to wait until the employer’s annual enrollment period.

Alternatively, you also may purchase coverage through a private insurer or through (or your state’s program, if available).

Once you enroll in Medicare, you should consider purchasing Part D of Medicare, the Medicare Prescription Drug Plan, which can help you save money on prescriptions.

Additionally, you may want to consider other Medigap insurance, which is designed to pay for medical care not covered by Medicare. Medigap plans are bought through private insurance companies and best purchased within the first six months of turning age 65 in an effort to get the best price and the most choices.


This coverage may continue until you retire. Whenever you decide to stop working, you should consider canceling your disability insurance as the need for it has expired.


The financial obligations that drove your life insurance needs while you were raising a family may have evaporated. However, you may find new needs arising from estate issues, such as liquidity, creating a legacy, etc.

Several factors will affect the cost and availability of life insurance, including age, health and the type and amount of insurance purchased. Life insurance policies have expenses, including mortality and other charges. If a policy is surrendered prematurely, the policyholder also may pay surrender charges and have income tax implications. You should consider determining whether you are insurable before implementing a strategy involving life insurance.

NOTE: Insurance companies are rated for their financial strength. A good financial rating could mean a higher likelihood that the insurer is able to pay out claims, among other attributes. Any guarantees associated with a policy are dependent on the ability of the issuing insurance company to continue making claim payments.

Extended Care

For some, extended care insurance is a priority in this stage of life. With the expense of children in the rearview mirror, you can now turn your focus to buying protection against potentially the most significant health-care expense you are likely to face in retirement.

Designed to pay for chronic, long-lasting illnesses and regular care, whether in-home or at a nursing home, extended care insurance (also known as long term care insurance) coverage is critically important since most of these costs are not covered by Medicare.

As you age and your lifestyle changes, so will many of your financial needs. Considering insurance in your financial plan is just one step in setting the stage for success.

If you need an introduction to an insurance professional to review any of the needs stated above, please let us know. We are always happy to make introductions to professionals in our network.

As a reminder, Searcy Financial Services, Inc. is a fee-only firm and its subsidiary, Allos Investment Advisors, LLC is a fee-only firm. While insurance planning is an important aspect of financial planning, we no longer act as an agent to complete the purchase process. This allows our firm to be known as a “Fee-Only” firm with various licensure and accreditation boards, as we do not receive any commissions for the sale of new insurance nor receive any commissions for the sale of insurance in previous years. We continue to assist our clients with insurance matters, including, but not limited to: analysis of existing policies, communications about new and existing policies, determination and recommendation for appropriate coverage and simply being available to explain how policies work and fit (or don’t fit) into their overall financial situation. You can read more in “Conversion to Exclusive Fee-Only Financial Advisor Services.” 

Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this content, will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for you or your portfolio. Due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this newsletter (article) serves as the receipt of, or as a substitute for, personalized investment advice from Searcy Financial Services, Inc.

The content of this letter does not constitute a tax or legal opinion. Always consult with a competent professional service provider for advice on tax or legal matters specific to your situation. To the extent that a reader has any questions regarding the applicability of any specific issue discussed in this content, he/she is encouraged to consult with the professional advisor of his/her choosing.  

Published for the blog on January 31, 2023 by Searcy Financial Services, your Overland Park, Kansas Fee-Only Financial Planner and Investment Manager.