Going to retire
soon?
How would you
meet your healthcare costs after retirement?
Do you have any
plan regarding it?
This blog will
surely help you. Unexpected healthcare costs can derail your plans of spending
life comfortably after retirement.
As you age, your
chances of getting ill increases. At the same time, the healthcare cost is
becoming sky high. So, depending on your lady luck will be a foolish act. So,
what’s the solution? Well, we’ll tell you exactly that.
You should plan your healthcare costs to meet
them with ease when retired. Look for ways to meet that expense in 100%
tax-free way.
Customize Your Healthcare Expenses
Consider your
health history, your current insurance plan, and prescribed medicines while
looking for customized healthcare services. Check out whether your selected
insurance is giving coverage for eye care, dental issues, and for other severe
or chronic illnesses. Also, go through its enlisted hospitals’ names. Make sure
that most of them are accessible for you even during emergencies.
Have a candid
discussion with your agent to take a smart decision. Your picked plan should
meet most of your medical expenses and not leave you and your family with a
high medical bill.
Healthcare Costs After Retirement
Get down to the
brass tacks. Healthcare expenditures for retired couple can be above $2,75,000
per couple. So, prepare yourself to meet this expense. Pick a proper health
insurance plan to prevent withdrawals from your other retirement accounts such
as IRA.
Long-Term Medical Insurance Plans
You may want to
get extra services along with the traditional ones. If some serious illness
occurs, your daily activities will also get affected. In such situations, everyday
chores like bathing, walking, and cooking will become tough for you. Hiring a
nurse is what you need then.
At the same
time, keeping nurse to look after you is expensive. Generally, private
healthcare insurance companies abide by the rules of Medicare on long-term.
If long-term
medical care is your requirement to cater to the other costs associated with
certain medical conditions, do enough research before picking any plan. But, if
you’re already getting personal care assistance, you may not considered to be
eligible to apply for long-term insurance. Your age, health conditions,
inflation rider, type of plan, coverage etc. are considered to determine your
eligibility for long-term care insurance. Therefore, it’s important to
anticipate the need of personal care aid beforehand.
Remember,
long-term plans are not to cover your personal care assistance for the
lifetime. Rather, they will give the coverage only for a specific period of
time like 3-5years. Before closing the agreement, don’t forget to check for the
duration the care will be provided.
Benefits of Having HSA
HSA is a Health
Savings Account to help people to meet medical expenses. It is treated as a personal
savings account. Anyone can open such an account. He or she can also transfer
it from one institution or job to another. Once you have HSA, you can enjoy its
benefits for a lifetime.
HSA lets you
enjoy tax-free interest and tax-deductible deposits. Moreover, you can withdraw
money from it without paying any tax. However, you can withdraw money only to
cater to medical expenses. According to a rule introduced in 2019, an
individual can keep $3500 in his or her tax-free account whereas families are
allowed to keep $7000. So, start saving and investing in this account to secure
your future.
There’s a catch.
If you’re above 65, you can use this HSA account just like your IRA or 401(k)
account. That means you can use the savings for whatever purpose you want. It
improves your income flow by allowing senior citizens to take their payments
regularly from it. They can use this income to meet their healthcare expenses
in future. Sometimes, immediate annuities are also given to the insurance
holders once they pay a big amount as premium.
Low Premiums of HSA
The eligible
plan of HSA such as HDHP enables you to have tax-free cash in your account. You
can use this money to meet your expected and unexpected medical expenses.
Old healthcare
insurances like HMOs, PPOs, and others have high monthly premiums. But, at the
same time, they give has more coverage options than HSA. While you can enjoy
more benefits with those plans, paying high premiums can create financial
burden on you. On the other hand, HAS removes all those financial burdens with
its competitive premiums.
Consult with Your Financial Advisor
Talk to an
experienced financial advisor. Always, select an advisor who updates his
knowledge about various medical plans regularly. Compare the qualities of
various advisors to get in touch with a reliable one. Only a knowledgeable advisor
will be able to tell you whether long-term care insurance or HSA will suit you
without adding to your burden.
It’s a known fact that people tend to get
attacked by diseases as they age. Therefore, it’s always a smart decision to
invest in a competitive healthcare insurance plan. At the same time, it’s
important to do enough research and consult with professionals to make the most
out of it.
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