Finding the right insurance policy when you reach the age of 65 isn’t always easy. Entering retirement means that you’ll have to leave your old employment policy behind and find a new one. Here’s what to consider.
What Are Your Existing Needs?
You first need to think about what you need in terms of medical care. It might be that you are in declining health, or you have a chronic illness that has been with you for most of your life. If either of those things are applicable to you, they should be factored into the decision when choosing which health care insurance policy is the right one for you. You will still be able to get a policy though, no matter what.
An insurance provider is not allowed to refuse you an insurance policy based on an existing condition that you have. They’re not even allowed to charge you more than they’d charge someone else without the condition you have. This is great news for people entering retirement looking for a policy for the first time after years of being covered by an employment program. You still need to think about which insurer provides the best cover for the conditions you have though.
Is Private Coverage or Medicare Best?
Medicare is a health care insurance program that is available to anyone who is over the age of 65. You won’t become legible until you start claiming Social Security benefits though. You will have to pay small fees for your medical treatment on top of your insurance, but a lot of your costs will be covered by the Medicare program. It is thought that roughly 50% of the bills of people on Medicare are paid by the program.
Therefore, Medicare is a definitely a very safe and secure option for people who don’t have a lot of money to spend on high health care insurance premiums. But there are benefits to finding your own private coverage too. First of all, you have more options when it comes to making your choice, and you might be able to find better rates if you search around.
How Much Can You Afford to Spend?
As I mentioned above, on average Medicare covers about half of what people on the program pay for their health care bills. This is a good rate, but you might want to shop around and find a better one if you think you can find a good deal. There are no certainties involved though. Those better rates might be offset by higher monthly insurance premiums. And there’s no way of knowing exactly how often you will need to use your health care insurance in the future.
There are different options you can go for within the existing framework of Medicare too though. You can pay a monthly premium that’s a little higher and have more bonuses that you wouldn’t have otherwise got. There are lots of bonuses that apply specifically to health insurance for senior citizens, so have a look around and compare deals before deciding.
There’s a lot to think about, but it’s worth putting the effort in so that you don’t make any mistakes.