Boomers: when planning for a future where your health and wealth needs are addressed, make sure to gain coverage from a Medicare Supplement Plan.
This insurance plan, which is also called a Medigap policy, is designed to address the gaps (out-of-pocket costs such as deductibles, coinsurance charges, and copayments) directly in Original Medicare Plans, offers the assurance and peace of mind that anyone entering the retirement phase of their life deserves.
And yes, these gaps should be addressed – these health care costs, if not managed properly, can break nest eggs. And we all know the blood, sweat, and tears that come with building a nest egg – you definitely need to find a solution to protect your retirement assets!
As such, we’d like to share some reasons why Medigap Plans should be an essential for every retirement plan. We also hope that the tips below will allow you and other readers the opportunity to reach out to an insurance agent to inquire more about possible coverage.
Preparing for the Future is Hard
More people find it hard to manage their finances during retirement. With various reasons such as the rise of health care costs, longevity, and lack of income or investment literacy skills, planning for retirement can be a challenge that will rattle one both physically and emotionally.
According to the 2016 Retirement Preparedness Study conducted by PGIM Investments, more than half of the report’s respondents (54%) expect to encounter difficulties in saving for retirement, compared to what their parents or grandparents experienced.
Additionally, 75% of the respondents admitted that they need to do more to prepare for retirement, but 40% of these individuals do not know what to do or where and when to start.
Focusing on boomers, the Insured Retirement Institute’s Boomer Expectations for Retirement 2016 revealed that almost half (45%) of the survey’s respondents had not saved a single dollar for retirement.
Considering the struggles one can face when it comes to retirement finances, purchasing coverage that a Medigap Plan can offer is a sound and logical approach to save one’s nest egg!
The Gaps Hurt
Regardless if one is covered by Medicare or not, out-of-pocket health care costs will always hurt. From prescription drugs to numerous doctor visits, expenses can pile up forcing a boomer to break his or her nest egg.
As cited from a Commonwealth Fund report, approximately 15 million Medicare beneficiaries spent up to 20% of their household income on insurance premiums and out-of-pocket health care costs last year.
With an average of $3,024 per year costs on the mentioned health care costs, the figure can increase for people with chronic health conditions.
As much as Medicare is a stable source of health insurance, the gaps can still stifle one’s savings and make life hard during retirement.
Benefits Beyond Basic Coverage
Aside from providing coverage to address the expensive gaps, some Medicare Supplements provide additional benefits that will delight policyholders.
First, there are ten standardized Medigap plans to choose from, offering applicants the power to pick a plan that will directly address their needs or preferences.
Second, additional benefits such as foreign travel coverage provide another layer of health and wealth security for applicants. With the travel coverage, policyholders are assured that their health expenses will be covered – perfect for boomers with plans to travel abroad, or for those who take trips to warmer climates during the cold months.
Third, private insurance companies sell Medicare Supplement Plans. This means that a boomer has the power to choose which insurer to work with. This allows one to not only find a plan that will fit his or her budget – finding an agent that will go above and beyond in helping one out in their retirement problems is now possible through this way!
More Opportunities to Enjoy
Most importantly, a Medicare Supplement Plan offers boomers the chance to enjoy the retirement years to the fullest. Just thinking about health care costs can be stressful – what more when one needs to move heaven and earth to pay for these costs?
Do you have other reasons why a Medigap Plan will help boomers secure their nest eggs? Or perhaps you have questions about these policies? Please let us know below by leaving a message below!