20 insurance tips for empty-nesters

8. Make a smart move.

If you're downsizing, moving into the dream house or shifting some things to a vacation home, be certain your belongings are covered during transit.

Many movers offer insurance policies that pay by the pound. Plans offering partial or full protection may be available if you ask.

Or, you can call your home insurer and pick up a "special perils contents endorsement" to cover your goods for full replacement value during the move, Hungelmann says.

Health insurance

An empty nest often means more travel. That can make a difference in your insurance needs.

9. Take a second look at your health insurance.

"The family's needs are changing, so it's a good time to look at health insurance options," says Lankford, the "Insurance Maze" author. With an eye toward what you need now, take a second look at the plans your employer offers. Is your current selection still a good match?

10. If you're going to travel, will your insurance follow you?

"Ask: 'What happens if I need health care when I'm out of the country or out of the state?'" Sevigny says. Not every policy will cover you. You might have to make changes to your policy before you hit the road.

Ditto if you're on Medicare. "Pick a supplement that will cover you in multiple states," Hungelmann says. Your goal: Make it easy to access medical care wherever you might be.

11. Have an evacuation plan.

Nothing can be more frightening than having a health crisis in a strange city or foreign country. Either on a per-trip or annual basis, you can have a policy that will fly you home immediately in the event of a medical emergency.

"And make sure you, not the local doctor or facility, get to decide whether or not you need to come home for treatment," Hungelmann says.

12. Think of the other guy.

If retirement is looming for you or your spouse, what are the health insurance options for the still-working party? If both of you are on the retiree's health plan, what do you have to do so that the working spouse has continuous coverage? A lapse can trigger those nasty pre-existing condition exclusions and make it harder to get another policy.

Some options:

• An individual policy is an option if the spouse is healthy.

• You could stay on the old policy for a limited time, paying the premiums out of pocket through what's commonly referred to as COBRA. (See "Know your COBRA rights.")

• After COBRA, you can seek a state-mandated plan, similar in quality to your group plan (required by the Health Insurance Portability and Accountability Act to be made available if you're about to exhaust COBRA and have maintained continuous coverage).

13. Talk to your adult kids about their insurance options.

Because many employers are cutting health insurance benefits, some twenty-somethings are staying on Mom's or Dad's group plan as long as possible.

If your kids hit the maximum age your plan accommodates and still don't have health insurance, they can buy an additional three years on the policy by paying all of the premiums themselves through COBRA, Lankford says. "That's great if they have medical conditions, but you will be surprised by the cost," she says.

14. View student health coverage as a supplement.

If your kids are still in college, consider using the school's student coverage as a supplement to your policy, Hungelmann says. Frequently, student plans will provide access to school facilities or local providers near the campus, which is great if your own plan is lacking in that area. But student plans typically are not good for stand-alone coverage, he says.

15. Proceed with caution when it comes to health insurance discount cards.

"Make sure you're getting into a legitimate program," Sevigny says. One way to find out: Call your state's insurance department, office of consumer affairs or attorney general's office. "Most states regulate or license insurance products," he says.

Life, disability and long-term care insurance

You're older, and your kids no longer depend on you. That can offer the possibility of real savings.

16. Calculate how much life insurance you need.

If the kids are through college, the mortgage is paid, and one or both of you is retired, you may not need to carry as much life insurance. (See our Life Insurance Needs Estimator.)

Life insurance is usually meant to replace lost income. When you retire and start tapping your assets, there is no income to replace.

"It's one of the quick areas we look at to reduce expenses," says Benjamin Tobias, the president of Tobias Financial Advisors in Plantation, Fla.

But if only one of you is retired, also look at the other side. Is money coming in now that would stop or be reduced if one of you died? Would the money that is available be enough for the survivor to live comfortably? Consider any special needs, such as supporting an elderly parent or disabled child, or paying off a home or second mortgage.

"Don't just assume that because the kids are gone, you can drop the life insurance," Lankford says.

Video: Do you need long-term care insurance?

17. Look at the type of life insurance you carry.

If you want to keep term insurance and you're fairly healthy, shop around. "You may be able to get a new policy at a better rate or lock in a longer time period at the same rate," Lankford says.

If you carry permanent life (not term), you don't want to just stop paying. Find out if you can cash it out, turn it into an annuity or convert it to a self-sustaining policy where the income it produces will cover the premiums, says Thomas Posey, the president of Posey Capital Management in Houston.

18. Check your disability coverage.

"Most disability polices require you to be disabled from work," Sevigny says. If you're retired and not working, you likely don't need it.

19. Consider long-term-care coverage.

Typically, 50 to 55 is the time to start thinking about long-term care, Posey says. "There's nothing magic about that age, but that's kind of when people start to get worried about it."

The important thing with long-term care is to understand exactly what a policy will (and won't) provide, so that you can get one that includes the options you want. For instance, some people buy the policies to give them access to home care after a medical problem. But not every policy will provide that.

What you want: an agent who is well-versed in the nuances of long-term care policies and what each will do for you.

20. Strategize your spending.

Do you want to take cash you're not spending on life insurance and buy a good long-term care policy? Or should you use some of it to beef up your retirement accounts?

It's also a good time to talk with people you trust and evaluate decisions over both the long and short term. Advises Sevigny: "Take it slow, be careful, do your research and get references."

This article was reported by Dana Dratch for Bankrate.com.

Updated Sept. 15, 2009

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