• How You Can Plan For Healthcare Costs before Retirement

    How You Can Plan For Healthcare Costs before Retirement

    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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