Coordinating Medicare with other Insurance

Most of us know by now that age 65 we need to transition from a major medical health insurance plan to Medicare. At this point we have a few options we can look at.

We can accept Medicare, we can look at a Medicare advantage plan which takes place of the government Medicare or we can add Medicare supplements to our Medicare plan to cover certain areas we feel may need enhanced coverage based on our own situation.

Along with Medicare insurance, there are some other insurance options that the senior market should be looking at and owning.

Life insurance is a key component in our retirement years as the death benefit can be used to back up our nest egg, provide a charitable donation, off set the cost of estate taxes and final expenses, leave behind gifts and college money for grandchildren etc. For some that didn’t get to build a large nest egg, spending could be less restrictive in the early years of retirement knowing that an insurance policy will replenish the surviving spouse’s nest egg.

For those that don’t have a life policy and may not qualify due to health reasons, final expense policies are available that can provide up to $50,000 of coverage.

Long Term Care insurance reimburses the cost of home health care, assisted living expenses or nursing home facilities should the insured’s health suddenly require such attention. This again helps protect the nest egg so that health care expenses do not take a toll on it. As Long Term Care can be costly, there are now Whole Life Insurance and Annuity options out there that offer riders which provide similar benefits as Long Term Care but without the cost.

Critical Illness and Cancer policies are just that; if one is to face serious illness, usually vascular/heart, cancer or other illness. These plans pay cash settlements to the insured which in turn can be used to help pay medical bills, medical deductibles, time off work, and travel for family members, child care and more. The cash is in addition to the insured’s major medical or Medicare benefits, long term care benefits or disability benefits. In other words, these type of polices don’t coordinate with your other insurance and don’t care about other insurance plans you own, they simply pay out.

The senior market can be well protected if a simple review is done of their insurance needs.  Not all products are necessary for everyone, nor can everyone afford to own all products. Your personal agent should be able to help you understand and coordinate benefits so that they fit with your retirement goals or needs.

We are available for questions as well. www.insuranceslc.com

Raising your parents

For those of you that have had the privilege of raising infants to toddler to child, the love you have and express is unexplainable. As a parent we’d do just about anything for our children and their wellbeing and success. My youngest is now potty trained and boy do I enjoy not changing diapers. Not to mention the savings on those things can be put to better use. Now flip the situation around and think of someone you may know who’s now taking care of their mom or dad or has a family member doing so because they are elderly and need the assistance.

As family we want to be there and we want to help however the roadblocks we encounter are financial means and emotional strength. I see it n many families. One of children (usually entering or in retirement themselves) is now the sole care giver for mom or dad. The other children step back as they are unable to help emotionally or financially. Family will be there but as you plan for your own retirement, why not plan for your children’s needs too. Long Term Care is not a substitute for family but a means for insured to have more comfortable care while not passing the financial and emotional burden to their children. Not only that, it protects the nest egg of the surviving spouse. This could mean the difference of the one healthy spouse watching the retirement savings deplete so dramatically that they now have to move in with one of the children. Hopefully in addition to the Long Term Care, a solid life insurance policy is there to “re fill” any of the nest egg that may have been depleted or at least ensure that the surviving spouse has enough funding for the rest of his/her retirement.

It’s no secret that Long Term Care insurance purchased after ages 50+ years old can come with expensive premiums. There are some niche solutions like Annuities that you can package with a Long Term Care rider. For example, your money could be earning interest and if you happen to suddenly need Long Term Care, a benefit, usually a percentage of the assets in the annuity would pay out a benefit to the policy holder.

$100,000 annuity with a 5% Long Term Care rider could = $5,000 monthly benefit ( roughly $167 day benefit based on a 30 day month).

• Long Term Care provides a daily benefit to be used for services.
• The average cost of Long Term Care in Utah for private nursing homes can run around $168 day and several hundred a day in other states. Source is Life Happens.org: http://bit.ly/9CnQvy
• Long Term Care can protect your nest egg
• Long Term Care should be in every retirement strategy