Different Types of Insurance You Should Know Before You Retire

All of us are at risk of running into an unexpected situation in life. We don’t usually have control over these things, but we can always have something to protect ourselves against its burdensome effects. Insurance is a kind of protection against financially undesirable unexpected events. Different types of insurance offer various kinds of protection depending on needs. If you have a financial advisor, he will help you determine what kind of insurance policies you will need. Wih so many options in the market, let us tackle the ones that will help you in times of health crisis.

Here are different insurance to help you finance your healthcare needs:

  1. Medicare

Medicare is Federal health insurance program for people age 65 or older. But it is also given to those with disabilities and people with end-stage renal Disease. The Original Medicare has two parts: part A and Part B. Part A covers inpatient hospital stays, care in a skilled nursing facility, hospice care, and some home health care. Part B covers certain doctors’ services, outpatient care, medical supplies, and preventive services. There’s Medicare Part D which offers prescription drug coverage but is offered by private insurance companies.


  1. Medicare Advantage

Medicare Advantage, also known as Medicare Part C, is offered by private companies that are under contract with Medicare. It covers both parts A and B of Original Medicare, and it also covers prescription drug coverage.  Its coverage is offered in networks only.


  1. Medicare Supplement plans

Medicare supplement plans, also known as Medigap plans, are ten standardized plans offered by private insurance companies. It works by providing coverage where the Original Medicare left off.  It pays all or part of the healthcare costs that Medicare doesn’t cover including deductibles, copayments, and coinsurance. It also offers other coverage such as traveling outside the US.


  1. Long term care insurance

Long term care insurance or LTCi is an insurance coverage for long term care. Medicare doesn’t cover long-term care costs and can be a burden to your finances if you are not prepared for this need. Since we are now living longer, the need for long term care at any point of our lives are now higher. Just like healthcare costs, long term care costs are also extremely expensive. Long term care insurance can cover you from those debilitating costs and at the same time protect your assets and finances.

  1. Medicaid

Medicaid is a program created by the federal government, but administered by the state, to provide payment for medical services or nursing home coverage for low-income citizens. It includes pregnant women, parents of eligible children, people with disabilities and older adults. Medicaid also pays Medicare premiums, deductibles, and co-payments for people who are enrolled in both programs. It covers long-term care costs, both in a nursing home and at-home care. It doesn’t cover prescription drugs, but if you are eligible, Medicaid can pay for the premiums of Medicare Part D or the Medicare prescription drug plan.



The various health coverage plans are can all provide you with benefits provided that you have prepared and planned how you would use them to your advantage. Plans can be confusing, that is why it is important to know these types of insurance coverage in order to equip yourself the right information to choose which one of them will provide you the best coverage during retirement.

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