Over 65? 8 Insurance Policies You'll Want To Cancel Immediately

Over the years, many people accumulate various insurance coverages, but not all of them are necessary once you reach 65. As you approach or enter retirement, reviewing your insurance policies is essential to ensure you have a financially sound retirement plan.

Some policies that once made sense may no longer align with your current needs, and holding onto these outdated policies can be a drain on your wallet.

Let's take a look at a few insurance policies you should consider canceling once you hit 65.

As you age, you're more likely to die from natural causes than a shocking accident. With that in mind, AD&D insurance could be a wasted investment.

On average, AD&D insurance costs $10 per month for every $100K of coverage offered. Canceling it could result in significant savings.

If you rarely drive or have an older vehicle, you may not need collision coverage. For many drivers, especially those with cars that are several years old, the cost of maintaining collision coverage can quickly exceed the value of the vehicle itself.

If you opt for liability-only coverage, you could save a few hundred dollars a year that could be used elsewhere.

This one depends on whether you're going to be a homebody or a globetrotter in your golden years. But even if you don't plan on taking any grand trips later in life, you likely still have some sort of coverage and don't need to add an additional policy.

Many credit cards offer some sort of coverage when booking, so be sure to double check with the card you're using to book.

Disability insurance is designed to cover lost wages if you're unable to work. But once you hit 65, you're that much closer to retirement if you're not already retired. Your retirement plan is designed to have you live off savings and other resources that aren't a primary source of income, so your need for this insurance diminishes quite a bit at this age.

Canceling it could save you between $25 and $500 per month, depending on your prior salary.

Similar to an insurance policy, an extended warranty typically provides free repair or replacement of the covered item. Low-cost coffee makers, carpet cleaners, and car vacs often include tempting extended warranties that may cost more than the repair.

Check the cost and small print on warranties and cancel those that don't make financial sense.

As you reach the age of 65, you may find that your existing health insurance plan is no longer necessary, particularly if you become eligible for Medicare. That being said, if you're still working over 65 or married to someone still working and on an employer-based insurance plan, it might have better coverage than Medicare.

Look at your current needs, what your current coverage looks like, and what coverage under Medicare might be like before you cancel anything.

A term life insurance policy refers to one that offers coverage for a set period of time. This can be 10, 20, or 30 years, depending on your specific policy. Once you hit 65, though, you may have outlived your term. It would make sense to cancel or let coverage lapse.

These plans typically cost around $25 a month, which is great to have back in your pocket as you near retirement.

If you've examined your other insurance products and ensured all of your current needs are covered, you most likely don't need umbrella insurance. These policies offer additional cover beyond home or auto policies, for instance, but often at an unnecessary cost for older adults.

Canceling unwanted umbrella policies could save you, on average, $380 a year to put towards a more luxurious retirement.

As you step closer to retirement, it's a great idea to take a fresh look at your insurance policies and see what still makes sense for you. Many of the policies you've had over the years might not be necessary anymore, and keeping them around just means you're spending money you don't need to.

By canceling or adjusting coverage, you can avoid wasting money in retirement and use those funds toward things that truly matter, like hobbies, family time, or travel.