If you are retiring, here's the insurance you still need

The average American's wealth peaks in the early years of retirement, which means you may have more to lose than ever before, and insurance will continue to play a big part in protecting your assets. However, your insurance needs will change. Outlined below is the information you should consider.

Health insurance. Medicare coverage doesn't kick in until you're 65, so if you're planning an early retirement, you'll need to factor in the costs of paying for your own coverage for several years.

Buying a policy on your own can be expensive, however, especially since individual health insurance policies get more costly as we age. Going without insurance is too big a risk to take since one illness or accident can wipe you out financially.

If you can't qualify for a group policy (say, through a professional association or other large organization) and you find the individual premiums for standard insurance too high, consider buying a high deductible or "catastrophic" policy. The monthly premiums will be lower than for standard coverage, although in the event of a pricey health problem, you'll have to pay quite a bit out of your own pocket ($1,000 to $5,000) to meet the deductible before the coverage kicks in.

Liability insurance. With more assets than ever, you could be at an even bigger risk of being sued. Make sure you keep the maximum available liability coverage on your homeowners and auto insurance. If your total liability coverage doesn't at least equal your net worth, consider adding an umbrella or personal liability policy or increasing the limits on the umbrella policy you already have.

Long-term care insurance. This type of policy covers expenses that health insurance and Medicare typically do not: the costs of a nursing home or home care if you're too disabled or ill to take care of the basic functions of daily living, like feeding, bathing or dressing, by yourself. The costs of such care typically start at $30,000 to $40,000 a year.

Because this insurance is new, however, there is much controversy over who needs to buy it and when. If you have plenty of assets -- $1 million or more -- and aren't worried about leaving an inheritance, you may decide to skip the insurance and use your wealth to pay for any care you need. If you have few assets, you're likely to qualify for Medicaid, the government health plan for the indigent, which covers nursing home costs.

If you're somewhere in between, or you're determined to protect your assets for your kids, then long-term care insurance might be a wise option. Many financial planners say the best time to buy the insurance is in your mid-50s to early 60s.

For more information, visit the Web site run by H.E.L.P., a not-for-profit organization that educates the elderly on financial matters.

Homeowners insurance. Even if your home is paid off, you most likely will still need the protection homeowners insurance can provide. Not only will it rebuild your house, but homeowners insurance also provides liability protection in case you get sued (see above).

You can save money by substantially raising your deductible, however. You should have enough savings set aside to pay for the first $1,000, $2,500 or even $5,000 of home damage out of your own pocket. Raising your deductible to those amounts will save considerably on your premiums.

Life insurance. If your children are grown and financially independent, and you have enough retirement assets to support your spouse should you die, then you may no longer need much, if any, life insurance.

On the other hand, if you're going to leave a considerable estate, life insurance could be used to pay any estate taxes that would be due. (While the estate tax is scheduled to be repealed in 2010, the repeal is currently slated to last just that year, with estate taxes returning for estates worth more than $1 million in 2011.)

Your best bet is to consult a qualified financial planner, probably in conjunction with an estate-planning attorney, to evaluate your individual insurance needs and the policies you own.