Every hear the phrase, "I'm insurance poor"? Perhaps you said it yourself. Realistically, you could hav too much of the wrong coverage. I once talked to a gentleman who was inquiring about getting life insurance. After reviewing what he had, and he admitted he had a lot, I discovered his life insurance policies were for accidental death. If you don't know, this meant he would have to die by accident for his beneficiaries to receive money. If he died of natural causes, had a heart attack, stroke, or any other non-accidental passing, the policies he had would not pay out. Just like having dental insurance if you have no teeth, some things don't make sense. Furthermore, they are not serving any purpose. It is important to know what coverage you need in preparation of things to come, so you don't waste your money.
MEDICARE SUPPLEMENT OR MEDICARE ADVANTAGE
For this discussion, and because Medicare is not purchased from an insurance company, we are not going to include it as an essential insurance. However, we are including it as a coverage you have to have to avoid penalty. The first insurance you need of course, would be a Medicare Supplement with a prescription drug plan, or a Medicare Advantage Plan that has both. As you know, you can't have both a Medicare Supplement and Medicare Advantage plan together.
DENTAL, VISION, & HEARING
This is not an insurance that after you get it, you use immediately and then cancel. Some would argue that you might not even need it. When you need it, you need it yesterday. Something to consider if your teeth are healthy is the cost of the premium and what you want to use it for. Average premiums are around $50 a month, making the yearly cost $600. Cleanings have been going for $125 to $150. If you have two cleanings a year, that would be only half of what you paid for the premium. Don't forget that this is still charged on top of the premium if you hold onto a policy. The longer you have the policy the better your benefit. If you have to see a dentist more than twice a year, this is where you see the benefit. Of course, as you age the vision may start to go as well as the hearing. You would see greater benefit then.
HOME HEALTH CARE AND/OR RECOVERY CARE
As you know, Medicare covers the hospital and your doctor, plus your drugs. What Medicare does not approve, is not covered by your plan, unless somehow the doctor and Medicare approves it. Home Health Care, such as custodial care provided for you if you are unable to perform two of your activities of daily living are not covered by Medicare. Also, if you need assistance with such things as meal preperations, bill pay, or other similar household duties, these are not covered. These are some of the plans available.
LONG TERM CARE OR ANNUITY
A friend of mine, now deceased, had a wife who quit her job at age 70. Shortly after, it was announced she had Alzheimer's. She passed about 8 years later. At his funeral, she sat on the front pew of the funeral home chapel. None of the family believed she was aware of his death. The point is diseases of the mind can last a long tme and place a significant strain on or completely delete your bank account.
You've saved a life time and you don't know how long you will live these days. Furthermore, you don't know if you will have enough money to last the rest of your life however long. Would it be a benefit to extend the life of those savings funds while protecting your principle? With an annuity part of that money could be used for long term care. If you don't have the funds, then a long-term care policy could help you if you are unable to live by or care for yourself. You have to decide which one makes more sense for you.
LIFE INSURANCE
Unless you have a sizeable estate, you probably want to leave your loved ones with extra money to replace unexpected expenses. With the cost of everything going up, this could include your funeral. If you didn't plan well enough ahead, this could mean your family may have to come out of pocket for your funeral. This would probably reduce the amount of money they would receive.
Now you know the main categories of coverage you should strongly consider and why. Of course, we are talking about primarily health and life insurance. It goes without saying you still need your car insurance. If you would like more information, just subscribe above or come visit us at Retirement Concerns
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