As you prepare for retirement with savings and 401(k)s, you should also look into personal insurance options. They’ll provide some financial cushion for you and your family as you grow older. Here are three of the main types from which you’ll benefit.

What Kinds of Personal Insurance Should You Include in Retirement Plans?

1. Disability Insurance

As you get older, your health will likely decline and make you more vulnerable to illness and injury, which could take you away from work. In the meantime, disability insurance will help cover your lost income. Many employers offer this type of coverage, although you can also get your own policy.

2. Long-Term Care Insurance

Once you’re retired and relying on savings to get by, you’ll likely need to cut down on household expenses. However, your health care costs will rise as well, especially if you develop chronic conditions or disabilities. Alongside Medicaid, which covers medical bills, long-term care insurance will help pay for the assistance you receive from an in-home aide or at a senior living facility. Keep in mind that the policy isn’t an option if you already have a medical condition or disability, so you should get it in your 50s or 60s to anticipate the effects of advanced age.

3. Life Insurance

Life insurance is an investment in your loved ones’ financial security. After you pass away, your designated beneficiary will receive the policy’s value or the death benefit, which can be used for anything from covering your funeral expenses to paying for your youngest child’s college tuition. Premiums are partially based on age and health, so the earlier in life you get a policy, the cheaper the rates will be.

Find the personal insurance options you need for retirement preparation at Mutual Underwriters in Honolulu. They’ve provided a variety of policies throughout Hawaii since 1958, from homeowners and auto to health and life. Find out more about their offerings online, and call (808) 532-2888 to set up an appointment.