What does moving into a retirement village mean for insurance?

Moving into a retirement home is a big adjustment, and with this new phase of life comes many things to consider, including your insurance needs.

You may be starting to prepare for retirement, or you may be moving into your retirement village or rest home soon. Either way, it's a good idea to think about what your options are, and what type of insurance works best for you.

Do I need contents insurance if I move to a retirement village?

If you’re moving into a retirement village, you’ll still need contents insurance to cover your possessions in your new place. Moving homes is a good time to review your “sum insured,” or in other words, how much cover you have in total.

When you’re moving into your retirement village, you might decide you want to downsize your contents and get rid of some belongings that don’t suit your new home. If you downsize, consider updating your contents insurance to reflect the contents you own in your new home.

It’s also worth reviewing how much the things you own would cost if you had to buy them all again today. If you haven't done so in a while, it’s useful to consider inflation and whether the cost of replacing your possessions may have increased over time, especially if you have contents insurance with MAS, which has “new for old” cover. 

Do I need to get house insurance if I live in a retirement village?

It’s a great idea to check with your retirement village about whether you need to organise your own home insurance. Typically, retirement village operators are responsible for organising insurance, and residents normally need to pay the cost of premiums as part of their weekly or monthly costs. 

Each retirement village is different and the insurance policies may change from one home to another, so it’s handy to have a clear outline of what you are covered for, and if you may need to add extra cover, such as contents insurance, or not. 

Something else to consider is if you are selling your house to move into a retirement home. If you are, it's important to make sure you keep your home insurance until settlement date. This will ensure your insurance cover is still in place if anything were to happen before the settlement date. 

Do I need life insurance if I’m in a retirement village? 

In general, life insurance is especially important if you have people that depend on you, or if you have debt that would need to be repaid after you pass away. It’s good to do some research, perhaps speak to an insurance adviser, and decide where your money is best spent.

If you don’t have anyone dependent on you, and no debt to clear, you may decide your money is better invested, or spent on yourself and your loved ones instead.

Another option when considering life insurance is whether you might want a payment left to a charity, or someone close to you such as a good friend or a young grandchild. Your life insurance could also go towards covering your funeral costs.

Everyone's situation is different, but one thing always remains the same: life insurance provides us peace of mind for the future. If you’re not sure what kind of insurance you need, or how much, as you head into the next stage of life, give MAS a call on 0800 800 627 to speak to a MAS adviser and figure out the best insurance setup for you.