of insurance planning that you may have best under control. However, if you move to a new state to begin your retirement, you will need to re-evaluate your Homeowner and Automobile policies. Some retirees also look at insuring their household goods in order to have adequate protection as they are trucked off to the new homestead. Look to companies that serve service members and veterans as their primary mission, such as USAA and Armed Forces Insurance (AFI).

Disability Insurance. This is one area that most active duty service members don't think about since they enjoy significant benefits when they become disabled in the line of duty. However, as a civilian, you should pay particular attention to this insurance. If you are starting a second career, most employers will provide you with both a short-term and long-term disability policy on a group basis. You need to review these plans carefully to ensure the protection is adequate. Don't forget, your excellent military pension continues for life even if you become disabled. This is a significant benefit that you have over your civilian counterparts. You should also evaluate your occupation and your avocation to see what affects they may have on this decision. Is your occupation one such that there is an increased probability of disability? Is your occupation one in which a disability would end your employment? A surgeon who suffers a disabling injury to his/her hands or an airline pilot whose vision becomes impaired are examples where purchasing an individual disability policy may be a consideration.

Liability Insurance. This is another area which most service members ignore, especially when it pertains to liability associated with the performance of their job. Your service normally stands behind you. However, as you enter a civilian career, you may be increasing your risk of liabilities resulting from your job performance. Negligence aside, physical or financial injury incurred as a result of some aspect of your work could put you at risk. One way to protect that risk would be to purchase an "Umbrella Liability" Policy. USAA, Armed Forces Insurance (AFI), and other similar companies offer policies that can provide a million dollars or more protection at very reasonable rates.

Long Term Care (LTC) Planning. Long Term Care is one area where you are not covered. Neither TRICARE nor Medicare provide for custodial care which is what most LTC consists of. Medicaid is usually a non-starter for a military retiree due to your pension. Long Term Care is a growing topic of interest in this country. Statistics show that with people living longer than ever. The probability of their needing some type of assisted living is also rising. In your family, the person with the most need is usually the female spouse. The average nursing home stay is two and a half years and the average cost is currently $60,000 per year. However, that can vary greatly depending on region. This time of transition from active service, may be a good time to consider your future LTC needs and start planning now. There are several options that financial professionals discuss:
 
   – Long Term Care (LTC) Insurance Plans. These are plans that you purchase much like Term life insurance. You pay an annual (or more frequent) premium and if you meet one of the “triggers” for long term care your plan pays you a monthly amount. These triggers are either one, the inability to perform two of the five or six Activities of Daily Living (ADL) without assistance or two, serious cognitive impairment such as dementia or Alzheimer’s Disease. ADLs typically include eating, bathing, dressing, toileting, and transferring from bed to chair. LTC Plans have a variety of benefit elections which impact the price, such as the amount of the daily benefit, the length of the benefit period (usually 3-5 years), the length of the elimination period, inflation protection options, etc. Your age is a major factor in your premium costs. The best place to start is with the Federal LTC Program. Use it as a benchmark. You can learn more about the federal program, including getting premium quotes for various options from their excellent website at www.ltcfeds.com.
 
   – Self Insure. Some financial professionals believe that if you have sufficient assets, you can provide for your and your spouse’s long term care. However, there is a risk that you could run out of funds and, of course, any assets used for long term care would not be available for other uses or for passing them on to your family. You should consider seeking the counsel of a financial professional if you think you can self insure. Additionally, some of the other options below could be used as part of you overall LTC Self Insurance Plan.
 
   – Continuing Care Retirement Community (CCRC. One way to self insure that is growing in popularity is to enter a CCRC. These are facilities that offer the full range of living arrangements - from separate homes or apartments where couples live independently, to nursing facilities where a person requires continuous long term care. There is typically a large entrance fee ($100,000 to $300,000 or more) and then a monthly fee ($1,000 to $3,000 and up). For those with sufficient assets, CCRCs offer an attractive option for insuring LTC needs.
 
   – Annuities. An annuity can provide monthly income for life or for a specified number of years. This income could be used to fund LTC needs or could be used to pay LTC Insurance premiums. The best way to use an annuity for this purpose would be to purchase a flexible premium deferred annuity at a young age and then make monthly contributions to it, letting it grow tax deferred and then annuitizing it later in life to pay for LTC expenses. This is probably not a viable option for most retirees. However, it might be an option for a younger retiree. There are also some “hybrid” annuities available that can have a LTC Option where the annuity payment would be increased if the annuitant met certain LTC criteria.
 
   – Life Insurance. Some permanent (whole life) life insurance plans have a LTC Option which allows an accelerated payout of the death benefit if the insured meets certain LTC criteria. Again, this would work best if the policy was purchased at a younger age with lower premiums. Most retirees will find whole life insurance to be an expensive alternative. However, the advantages are that you have the LTC protection if you need it and life insurance and cash value if you don’t require long term care, so it may be well worth the cost. Navy Mutual Aid Association’s Permanent ‘Plus’ is one such whole life plan. Use it as a benchmark.
 
 
   – Reverse Mortgages. A reverse mortgage is a nonrecourse first mortgage loan against a home’s market value that advances cash to the borrower who remains the homeowner. It requires no installment payments, and proceeds from the sale of the home are used to repay the loan when the borrower no longer maintains the home as a principle residence (e.g. dies or moves into a nursing home, etc.). A reverse mortgage is an option for obtaining funds to pay for LTC. Reverse mortgages are provided through the federal government and private lending institutions. To learn more visit the AARP website at www.aarp.org/revmort.
 
   – Family Care. About 70 percent of long term care is still being provided by family members. However, this can be a significant physical, mental and financial burden on a family. It can require modifying a home to accommodate the LTC needs of a person. In many cases, families eventually have to turn the care over to professional care givers or turn to a...