When planning your retirement there are many things you should consider before taking the plunge and not all of them are overtly financial, though in some large way they are all very financial considerations, particularly if you don't take the time now to consider their importance later. Insurance is an important consideration when it comes to retirement. Depending on your age at retirement you may or may not qualify for Medicaid, which could leave you in a bit of a pickle when it comes to covering the high cost of insuring your health.
If you have a spouse that will continue working for a year or two you may want to consider the cost of being added to his or her insurance coverage. Chances are it will be less expensive than striking out on your own for health insurance coverage, which tends to increase in cost with age and according to health.
Dental insurance is another huge consideration among those approaching retirement age. The cost of actual dental insurance can be quite cost prohibitive but there are other options in the form of discount programs. There are quite a few programs that exist and all you really need to do is a quick Internet search in order to find more than a few good prospects. You will want to make sure that the plan you are considering has providers in your area before signing up. Some of these plans actually offer discounts on other services such as vision, prescription drugs, and even medical care. The costs typically vary according to the offerings of the plans in question.
Medications are another important consideration when retiring, particularly if you are planning to retire early or prior to the traditional retirement age of 65 when Medicaid kicks in. Some of the plans mentioned above offer discounts on prescription drugs and there are other things you can do such as asking your doctor about generic options or less expensive methods for medication that might exist. Some drug companies are offering free medications to people who meet their qualifications.
Long-term care insurance is a relatively new concept and something that many of us do not wish to consider but is something that really should be considered when you are young enough to get reasonable rates. If you are in your 50's and early 60's you should be able to get this particular type of insurance for around $100 a month. Whether you want to acknowledge that this could be a need for you or not, the odds are that it will be a very real need in time. Unless you plan to leave significant amount of debt in your wake it is a good idea to make sure you invest in long-term care insurance.
Thanks to medical advancements and a nationwide emphasis on healthy live, life expentancy is on the rise in the United States. Today a 65-year old man can expect to live until he is 86, and a woman of the same age can expect to live in 89.
A long and healthy retirement can mean a desire to travel, a new home, new hobbies, and countless other wants or needs that require adequate retirement funds. A long retirement can also be expensive if you experience an unexpected illness.
As life expentancy increases, you might face "longevity risk" or the potential for your assets to run out during retirement. In addition to providing death benefit protection, permanent life insurance can help you manage that risk.
Life insurance can be a twofold strategy as part of your retirement plan:
Death benefit protection during working years - In the event of death, the proceeds are distributed to your beneficiaries general income tax free
Potential source of funds to help support a longer retirement - Your premium payments on a permanent life insurance policy may accumulate cash value on a tax-deferred basis. Through policy loans and withdrawals, the cash value may then be used to help pay for a wide variety of needs in retirement. These could be planned distributed for planned expenses, or potential cash value may be used as additional funds to help protect you from outliving other retirement income sources or unplanning expenses. You may also qualify for accelerated death benefits which allow you to access a portion of this death benefit during your lifetime in case of an unexpected illness if eligibility requiements are met.
If you would like a free consultation to examine your situation and help put a plan in place,
reach out to me.
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