I am 60 year old, work part time, have disability policy. How to decide when to drop the coverage?

Question

HAD DISABILITY POLICY FOR OVER 20 YEARS; NOW NEAR RETIREMENT, I HAVE CUT DOWN MY WORK TO PART-TIME AND HAVE ACCEPTED LOWER INCOME. I WILL CONITNUE TO WORK PART-TIME AS LONG AS I AM IN GOOD HEALTH. WHAT FACTORS SHOULD I CONSIDER TO DECIDE WHEN TO DROP DISABILITY POLICY COVERAGE?

Answer 1

You need to review your policy with your agent. You may want to keep the policy, but reduce the coverage to reflect your current income. The kind of policies sold 20 years ago, are not  generally available today. It may be coverage you can not duplicate. Also, read the policy and see what provisions it has regarding your age, and what it will pay if you become disabled. Some policies don't pay over a certain age. Lastly, if you are working part-time to keep busy, but don't need the income, you may want to save those premium dollars. But, if you are working to supplement your retirement income, then you may still need this policy, should you become ill. You wisely insured your ability to work when you were young and healthy. Best of luck to you. Enjoy your semi-retirement!

p.s.-sometimes part-timers and retirees find nasty surprises when they go from full-time employment. Sometimes, they lose their company sponsored life insurance, or health care benefits. Be sure you review your entire work package, if you have one through work, with your agent. That way, you can do your retirement planning before you encounter a problem!