Securing your retirement finances is synonymous to adequately addressing health issues that may occur during the golden years. And this is why we’d like to introduce the many benefits of Medigap Insurance – this form of coverage may just be what most individuals from the baby boom generation are looking for!
One of our previous posts discusses how Long Term Care Insurance (LTCI) can be a smart buy for the retirement years. Yes, an LTCI policy will be able to address financial concerns related to custodial care – which, according to the U.S. Department of Health and Human Services, approximately 70% of individuals age 65 years old and above in the country are expected to receive some form of Long Term Care in their lives. Accordingly, address the costs of care as early as today is an excellent and practical idea, considering that health care costs are rising.
Now, when it comes to securing one’s nest egg (especially if a string of diseases are expected related to aging), a Medicare Supplement Plan (also called as Medigap) can be considered as the best insurance solution. Medigap policy basics revolve on the approach of helping policyholders pay for the out-of-pocket expenses (also known as “gaps,” such as coinsurance fees, deductibles, and copayments) that aren’t covered by Original Medicare plans. And focusing on these costs can prove to be a lifesaver, considering that medical bills can both quickly pile up and deplete one’s savings.
To further expound on the importance of this insurance policy, we’ll be briefly discussing some important reasons below:
Additionally, Medigap plans come in ten standardized plans (Plan A to N). With various policies to choose from, applicants from different walks of life or with different sets of circumstances and needs are assured that sufficient coverage will still be provided. Also, private insurance companies sell these Supplements for Medicare. This just means that applicants will also have the advantage to shop around the market for the best-priced policy and to seek an agent they are comfortable working with.
Additional coverage benefits may be included, depending on the chosen policy as well. One particular benefit, foreign travel coverage, offers both the security and peace of mind that most boomers will enjoy having during trips. The assurance that emergency health coverage will be provided, even on foreign soil, is akin to a breath of fresh air – perfect for elder travelers with plans to wander the world during the golden years, or for those who regularly travel to warmer climates during the cold season.
Every cent matters when it comes to health care financing. As mentioned above, the gaps can quickly deplete one’s personal savings if not addressed properly. And considering that a majority of boomers have little to no savings set aside for the future (as based on a study conducted by the Insured Retirement Institute last year), a Medigap policy offers some much-needed help in making every dollar count.
And not to mention, the lack of health literacy amongst most boomers today can also contribute to more financial woes. The National Assessment of Adult Literacy (U.S. Department of Education) revealed that 77 million Americans have inadequate health literacy – which results to mismanagement of funds, especially in paying for medical checkups or procedures that are deemed unnecessary.
As such, Medicare Supplements play a big part in securing health care expenses: the security net provided by these policies allow individuals to experience the freedom that everyone deserves to have during the golden years.
We hope that the reasons mentioned above will help you realize that a Medigap Insurance Policy is also a smart buy for your future. We hope all the best for everyone in attaining the future they’ve aspired for.