Should I keep my life insurance after I retire?

The decision to retain a life insurance policy after retirement depends on your family and financial circumstances. While many retirees choose to stop paying their life insurance premiums when they no longer have young families, there are several reasons to keep a policy. Here are some things to consider before making a decision.

Family: Life insurance is designed to help protect your spouse and children in case of an unexpected passing. However, if you have adult children who are financially independent and sufficient financial resources to cover you and your spouse’s retirement costs, the need for ongoing life insurance may be minimal.

On the other hand, if you had a child late in life or have a relative with special needs who is dependent on you for income, it may make sense to keep paying the premiums on your policy.

You also need to make sure your spouse’s retirement income will not significantly drop when you die. Check out the conditions of your pension or annuity to determine the survivor’s benefit and factor in your lost Social Security income as well. If you find that your spouse will lose a significant portion of income upon your passing, you may want to keep the policy to help make up the difference.

Debts: If you are still paying off a mortgage or have other large debts, it may be best to keep your policy in order to help your family pay off these debts after you pass. If your debt is a small part of your net worth that poses no risk of financial difficulty, then life insurance may not be necessary.

Work: Since life insurance helps replace lost income to your family when you die, you may want to keep your policy if your spouse or other family members depend on you for income. However, if you have very little income from your retirement job, it is likely unnecessary to continue with the policy.

Estate taxes: Life insurance can also be an estate planning tool if you have a very large estate, in excess of $12.92 million in 2023. If you own a large business that you want to keep in the family and you do not have enough liquid assets to pay the estate taxes, your estate may use the proceeds from a life insurance policy to help your heirs pay estate taxes when you die.

To help you with this decision, consider talking to an estate-planning expert or a fee-only financial advisor who can help you weigh out the pros and cons.

Sell or Swap Your Policy: If you decide that you do not need your life insurance policy any longer, you may surrender it for its cash value or allow it to lapse. Another option is to sell your policy in a “life settlement” transaction to a third-party company. A life settlement sale typically pays more than the policy cash surrender value.

If you are interested in this option, get quotes from several life settlement providers or brokers in your state. Some states provide directories containing licensed life settlement providers. Make sure to confirm the information with your state’s insurance department.

Another option is to use a tax-free Section 1035 exchange to exchange your policy for a hybrid product that blends life insurance with long-term-care insurance coverage. These products come in various forms, but they often combine a whole or universal life policy with a long-term-care rider. If you do not use the long-term-care coverage, your heirs get the death benefit.

Donate Your Policy: If you choose to make a charitable contribution of your life insurance policy, your deduction will depend on whether the policy has increased in value above the premiums and whether the policy is paid up or there are remaining payments to be made. To receive an income tax deduction, the donor must irrevocably transfer ownership of the policy to a nonprofit. With this transfer, the donor must relinquish all incidents of ownership and rights in the policy. An outright gift of a life insurance policy will produce a charitable income tax deduction equal to the lesser of the policy's value or the donor's basis in the policy. See Sec. 170(e) and Rev. Rul. 78-137.

In general, the donor's basis in a policy equals the total amount of premiums paid by the donor. As a practical matter, the charitable income tax deduction will normally equal the donor's basis because, in most instances, the cost basis will not be greater than the policy's value, i.e., replacement cost or interpolated terminal reserve value (ITRV).

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living" book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization's official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.

The doctor I currently see thinks I need a knee replacement, but I would like to get some other treatment options before I proceed. Does Medicare cover second medical opinions?

Medicare will pay for a second opinion if your current doctor has recommended surgery, or some other major diagnostic or therapeutic procedure. A second medical opinion from another doctor may offer you a fresh perspective and additional options so you can make a more informed decision. If the second opinion agrees with your current doctor's opinion, then the second opinion will give you reassurance.

If you are enrolled in original Medicare, 80% of the costs for second medical opinions are covered under Part B (you or your Medicare supplemental policy are responsible for the other 20%). You do not need an order or referral from your doctor to get the second opinion. If the first two opinions differ, Medicare will pay 80% for a third opinion.

Most Medicare Advantage plans also cover second opinions, but you may need to follow certain steps to get the expenses covered. For example, some plans will only help pay for a second opinion if you have a referral from your primary care doctor. They may also require that you consult with a doctor in their designated network. If you are enrolled in a Medicare Advantage plan, familiarize yourself with their specific guidelines.

Finding Another Doctor

To find a qualified doctor for a second opinion, you may ask your doctor or another trustworthy physician for recommendations. You also have the option to independently search for one.

Whatever you choose, it may be best to go with a doctor that is affiliated with a different practice or hospital than your original doctor. Hospitals and practices can be uniform when it comes to treatment recommendations and doctors from the same group are likely to offer similar advice.

If you choose to find a doctor on your own, consider using Medicare's Care Compare tool at Medicare.gov/care-compare or call 800-633-4227. This tool will help you find doctors by name or medical specialty in your area that accept original Medicare. If you are enrolled in a Medicare Advantage plan, call or visit your plan's website to obtain a list of candidates. After you have a few doctors' names, there are free online resources to help you research their background and credentials.

Once you decide on the second doctor, ask your current doctor's office to send your medical records to the second doctor and follow up to ensure the records arrive before your appointment. Sometimes, you may have to pick up a copy of your records and deliver them yourself. Ensuring the second doctor has your records will help avoid having to repeat tests you have already done. If the second doctor wants to perform additional tests, Medicare will help pay for those tests.

For more information, see the Medicare publication "Getting a Second Opinion Before Surgery" at Medicare.gov/publications – type in 02173 in the Keyword or Product number box.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living" book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization's official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.

Due to my chronic arthritis, I have a very difficult time going up and down stairs. I am interested in purchasing a stair lift for my two-story house. What are some things to consider before purchasing?

A home stair lift is a great mobility solution for anyone who is unable or has a difficult time climbing stairs. To help you choose a quality stair lift that meets your needs and budget, here are a few shopping tips.

What to Know

There are two basic types of stair lifts that are sold today: straight and curved. The design of your staircase will determine the type of stair lift you will need.

A straight stair lift travels in a straight line up a flight of stairs uninterrupted by landings, bends or curves. Straight stair lifts cost anywhere between $3,500 and $5,500. Prices will vary depending on the length of the staircase, model and added options. Curved stair lifts are much more elaborate and will go around corners, bends and changes in direction. Curved lifts are much more expensive than straight stair lifts, ranging anywhere from $8,500 to $14,000 or more, depending on the complexity of the installation.

Most stair lifts available today have seats, armrests and footplates that fold up for storage. Swivel seats are frequently incorporated, making it easier to get in and out of the chair. They also include standard safety features like seatbelts, braking systems and footrest sensors. The controls, which are typically in the form of push-buttons or rocker-switches, are located on the armrest for easy operation. Additionally, some stair lifts include "call send" controls which allow you to call or send the unit to the other end of the stairs. You should review which features are most important to you and ensure that the lift you select incorporates them.

If you need a stair lift with wider seating and increased weight-bearing capacity – you may want to inquire with the company about their availability. If you prefer a raised seating position, ask about the option to modify the seat during the installation process.

Depending on the company, you may have the option to choose between an electric (AC) and a battery powered (DC) stair lift. Electric stair lifts are simpler and more affordable than battery powered units. However, the electric lifts rely on your home's electrical supply. Therefore, in the event of a power outage, electric lifts will stop operating whereas battery powered lifts will continue to operate even when there is a power failure.

Financial Help

Health insurance, including original Medicare, does not cover home stair lifts, but some Medicare Advantage plans may provide some assistance. Medicare may pay for a portion of a lifting device attached to the chair as that is considered durable medical equipment (DME). However, Medicare has specific eligibility criteria for DMEs to qualify for assistance. Alternatively, if you have long-term care insurance it may also cover a portion of the costs. It is important to note that stair lift financial assistance is not available on all plans. Check with your insurance plan provider prior to making any purchase.

If you qualify for Medicaid, many states offer waivers that could help pay for a lift. If you are a veteran, the Veterans Administration (VA) has several grant and benefit programs that may offer assistance. Assistance varies by state, so you should verify with your local Area Agency on Aging to see program availability and eligibility.

To reduce costs, consider purchasing a used or refurbished stair lift model. If you need a stair lift for only a short period of time, renting one could be a viable choice. Most companies offer these options and many offer financing as well.

To get started, you can reach out to stair lift companies which will connect you with a local stair lift dealer in your area. Most dealers will provide free in-home assessments and estimates and can help you choose an appropriate lift.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living" book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization's official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.

I frequently use the internet to pay bills, shop and keeping up with my grandchildren on social media. But a few months ago, my computer was infected with malware and a cyber hacker opened a credit card using my identity. Do you have any tips to help me stay safe while online?

Cybercrimes, especially against seniors, continues to be a major problem in the U.S. According to the FBI 2022 Elder Fraud Report, cybercrime cost Americans over age 60 more than $3 billion last year, an 84% increase from 2021.

While anyone can be a victim of cybercrimes, seniors are frequent targets because they tend to have more money than their younger counterparts. But there are several things you can do to protect yourself from online fraud, hacking and scams. Here are a few tips to protect yourself.

Strengthen your passwords: A strong password should contain at least 12 characters and include numbers and a special character, such as an exclamation point or asterisk. Be sure to have unique passwords across different sites and applications to ensure a hacker would not gain access to all of your accounts through one password. Use an encrypted and trusted password manager to store all your passwords. If you keep a written list of all your passwords, make sure you store it in a safe secure place. Avoid storing passwords on devices using the 'remember me' feature as it only increases your chances of being hacked. When using smartphones or tablets, be sure to set up a password to access and protect your device in the event it is lost or stolen.

Opt out of pop-ups: To protect yourself from computer viruses and other forms of malware, avoid any pop-up style message when you are on a website. Additionally, internet browsers provide options to customize settings, including the ability to disable pop-ups for added security. Hackers often disguise their malware as pop-up advertisements or "special offers" when you are shopping or reading online. By clicking on these pop-ups, it can lead to viruses or data breaches. If you encounter a suspicious pop-up message, do not click on anything in the window. Simply leave the site or close out of your web browser.

When in doubt, throw it out: Sometimes online hackers will engage in a tactic known as phishing. The hacker will send an email or text message and pretend to be someone to convince a victim to share valuable information with them such as Social Security Number, address or credit card information. If you receive a suspicious message from an unknown sender, do not respond or click on any links or attachments. Instead, delete the message or if you are on a work email, follow your employer's phishing protocol and report the message as phishing.

Share with care: It is possible to overshare information online. This applies to private information you may post on various online profile accounts. Using popular social media platforms makes it easier for hackers to collect information about you based on what you share, including details like your home address and personal contact information. Ensure that your privacy settings are up to date so that only people who follow you can see your posts. Be mindful not to post information that may be related to security challenge questions or financial accounts.

Verify websites: Before you shop or access your bank online, double check the validity of the website you are using. Reputable websites use technologies such as SSL (Secure Socket Layer) that encrypt data during transmission. You will see a padlock icon in your browser and usually "https" at the front of your address bar to confirm it is a secure connection. If you do not see it in the web address that you are on, you should not trust that website with your passwords, payment or banking information.

Have some back-up: While practicing safe habits can protect you and your information, you do not have to solely rely on your own efforts to stay safe. Anti-virus software can be used to prevent and detect viruses or other types of malwares from your computer. It works in the background and helps make it easier to avoid threats while on the internet.

For more information on how to safeguard your personal technology devices and personal information, visit consumer.ftc.gov and search "Protect Your Personal Information and Data." To report fraud or identity theft, go to either ReportFraud.ftc.gov or IdentityTheft.gov.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living" book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization's official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.

The Internal Revenue Service (IRS) reminded taxpayers that September is National Preparedness Month. With Hurricane Lee in the Atlantic intensifying to Category Four at the time of publication, the storm season is now approaching. While Hurricane Lee is projected to turn north and miss the U.S., there are likely to be other storms that impact the Gulf Coast and other regions.

The fall season may involve hurricanes, tornadoes, floods, fires, earthquakes and other natural disasters. September is a good month to focus on safeguarding your essential documents. You should create a list for preparedness and secure your important documents.

If you are in a natural disaster, having a file of important documents will be important. Relief by the Federal Emergency Management Agency (FEMA) and other disaster agencies may depend on your ability to recover records and submit an application.

Each individual should gather important documents and place them in water and fireproof containers or a bank safe deposit box. There are several categories of important documents to collect.

1. Personal Identification — Personal items include birth certificates, passports, Social Security cards, Medicare cards, driver's licenses and marriage certificates.
2. Financial Documents — You should collect all of your bank and investment statements. These may include the statements for your IRA, 401(k), 403(b) or other retirement plans. It is helpful to retain at least three years of your income tax returns (some individuals keep six years) and titles and registrations for your cars, trucks, RVs, boats and other vehicles. You should have a copy of your home, auto, life, health and other insurance policies as well.
3. Real Estate Records — If you are a homeowner, you will want to retain a deed to the property and mortgage agreements. If you own other real estate, you may also have lease or rental agreements. It is important to keep records of your home improvements such as the addition of solar panels or battery backup system.
4. Estate Documents — Each individual should have a will. For some individuals a living trust may be advisable. You may also have an advance healthcare directive or a durable power of attorney for finances. It is good to retain copies of the beneficiary designations for your retirement plans, insurance and financial pay–on–death (POD) accounts. In some states, you also may have real estate pay–on–death accounts. You can avoid probate on most estate property through your beneficiary designations. You should retain copies of all these documents in your disaster preparedness file.
5. Medical Records — Your medical information could include your health insurance, immunization records, a list of your prescription medications and any other important medical history.
6. Education and Employment — It is helpful to retain copies of diplomas and education transcripts. If you have any work-related licenses or professional certificates, those records should be included in your file.
7. Personal Records — Many individuals keep digital copies of family photos. If you served in the military, you should safely store your service and honorable discharge records. If you have become a United States citizen, you should keep a record of the naturalization papers.
8. Emergency Contacts — It is helpful to have a list of emergency contacts. These will frequently be family members. You also may wish to list the names and contact information for your doctors, financial planner, attorney or other advisor.

Many individuals scan these documents and create digital copies. The digital copies can be stored on an encrypted USB drive or through a secure filing system in the cloud. It may also be desirable to have a reasonable amount of cash on hand and know where your valuable items are retained in case you must evacuate.

As individuals discovered during the Lahaina fire in Maui, you may not have a great deal of warning time before an evacuation. Many Lahaina residents had five minutes or less notice they would need to flee. If you know the location of your cash and valuables, you will be able to gather them quickly and then evacuate.

Editor's Note: It is good to review your natural disaster preparedness plan each September and update these files. Many individuals also have a senior parent or other relative in assisted living or a nursing home. You can provide a great service to them with an annual checkup on their important documents.

Prices keep increasing for my prescription medications, even with my Medicare prescription drug insurance. Can you recommend any tips that can help cut my costs?

The high cost of prescription drugs is an ongoing problem affecting everyone, most notably seniors. Seniors tend to feel the impact more due to their greater need for medications and because not all of their drug costs are covered by Medicare.

While the Inflation Reduction Act of 2022 will help seniors save on their medications by negotiating lower drug prices and capping out-of-pocket spending at $2,000, it will be a few years before the law is fully phased in. In the meantime, here are some different strategies that may help reduce your prescription costs.

Talk to your doctor: First review your medications at least once a year with your primary care doctor to determine if any can be stopped or reduced. If you are taking any brand-name drugs, check to see if they are available in a generic alternative. For long-term prescription drugs, you may want to ask your doctor what the price might be for a three or six-month prescription instead of a monthly supply for potential cost savings. While the cost per pill is reduced, your total price will increase since you will be purchasing at a higher volume. Additionally, consult with your doctor to see whether your prescription allows you to partake in pill-splitting. Pill-splitting is the practice of dividing a medicine tablet into two pieces. This practice can get you twice as many pills for the same price. If you do this, your doctor will need to write the prescription for twice the dosage you need.

Review your insurance: Carefully review your drug coverage during the open enrollment period, which runs October 15 through December 7 for Medicare beneficiaries. Make sure all your regular medications are covered in the plan's formulary, that your current pharmacy is in the plan's network and that your plan covers additional medication coverage in the gap. To shop and compare Medicare prescription drug plans go to Medicare.gov/plan-compare.

Pay cash: Not using insurance for prescriptions seems counterintuitive, but in some cases, it may save you money. For example, many chain pharmacies and big-box retail stores have their own prescription savings programs that may be lower than your insurance copayment. Another option is to check out a price comparison platform for prescription drugs. These websites often provide coupons to help you save up to 80% off the list price of generic and some brand-name drugs in certain pharmacies.

Shop online: You can also save on regularly used medications by having them delivered to your home from a mail-order pharmacy. Check with your health insurance provider or usual pharmacy to see if this is an option and whether it is more cost effective. If this is not an option, check online pharmacies and compare prices. With these, you may spend less in some cases than you might with insurance.

Get more help: If your income is limited, you may also be able to get financial help through Medicare's Extra Help program (Medicare.gov/basics/costs/help/drug-costs), your state pharmaceutical assistance program (Medicare.gov/plan-compare/#/pharmaceutical-assistance-program/states) or patient assistance programs (Medicare.gov/pharmaceutical-assistance-program). Visit each website to see if you are eligible and learn how to apply.

Savvy Living is written by Jim Miller, a regular contributor to the NBC Today Show and author of "The Savvy Living" book. Any links in this article are offered as a service and there is no endorsement of any product. These articles are offered as a helpful and informative service to our friends and may not always reflect this organization's official position on some topics. Jim invites you to send your senior questions to: Savvy Living, P.O. Box 5443, Norman, OK 73070.

The IRS has been slowly moving forward with a direct e-file system. Several members of Congress have promoted the concept. The Inflation Reduction Act included funding to allow for the IRS to conduct a study on building an e-file system.

To explore the interest in a federal e-file system, the IRS has conducted two taxpayer surveys. There is significant taxpayer support for a direct e-file system, particularly among younger taxpayers. The survey responses emphasized that privacy is a major concern and taxpayers prefer to combine filing a federal return with their state tax return.

The IRS estimates that a direct e-file system would cost between $64 million to $249 million each year. The majority of the costs would be for customer support. The IRS also faces major challenges due to the complexity of the U.S. tax code. A direct e-file system must be updated regularly for tax law changes and to ensure that taxpayer information is secure.

The IRS points to many other nations that offer a direct file system including the United Kingdom, Australia, Japan, Spain and France. One step in taxpayer convenience is a prepopulated filing system. Australia, Belgium, Denmark, Spain, Sweden, France, Finland and Norway all offer these systems.

Many nations, including Australia, New Zealand and the United Kingdom, offer extensive online services. The IRS recently has moved forward with enhanced systems. U.S. taxpayers now have a " Your Online Account " page. The IRS also launched new chat bots that provide taxpayer support.

Editor's Note: Several members of Congress who support direct e-file have observed that commercial tax software companies are not protecting taxpayer information. One of the primary reasons for creating a federal system is that many of the commercial companies have been using Google analytics. Some of the tax software websites included a Google Pixel that collected income, refund amounts, filing status and scholarship information from taxpayers who used those websites. The taxpayers did not consent to the use by Google of that information for marketing purposes. While Google claims that it has safeguards to protect personal identity, artificial intelligence capabilities now allow identification of individuals through their data. The advocates for an IRS direct file system emphasize a federal system that would protect the information of taxpayers.