Here you are, counting down the last days before you retire, after what seems like a lifetime of work, "climbing the ladder", and investing into your IRA or 401(k).Congratulations!
Retiring is certainly one of the bigger milestones in life. And likely, excitement mixes with anxiety and apprehension. Is there going to be enough money? What are you going to do with all the new-found time? Among the many formalities that come with retiring, your insurance might not be the first thing on your mind. After all, the time to set up your insurance is usually long before retirement...
Still, as you take the plunge into retirement, give your personal protection plan a quick review: Adapting your personal insurance to your new status as a retiree may not only save you money, but will also set you up for the future.
I'm not eligible for Medicare yet, what do I do for health insurance?
If you are under 65 and retiring, you are eligible for COBRA or IL Continuation from your employer. When that runs out, you will need to purchase an individual policy until you turn 65 and are eligible for Medicare. If you do not qualify due to health issues, you will want to get information on the ICHIP program through the State of IL.
CB Health Insurance is happy to provide you quotes for you and your wife to determine if an individual plan is more affordable than COBRA or if you need to enroll in the state plan. NOTE: If you are eligible for Medicare, but your wife is under age 65, IL Spousal Continuation laws will allow your wife to stay on your ER group plan under she turns 65 (provided she is over the age of 55). For more info, visit this site: IL Continuation for Spouses
I'm over 65 and eligible for Medicare, but my company does not offer retiree health benefits; what do I do?
The first thing you will need to do is enroll in BOTH Medicare A and B, if you have not already done so. Medicare Part A is free, and you should have been automatically enrolled when you turned age 65. Medicare Part B has a cost to enroll, and the premium varies by your total household income.
If you belonged to a group health plan with over 20 employees, your group was primary and there was no need for you to enroll in Part B ...until now. Now that you are retiring, you will want to contact your local Social Security office and enroll in Medicare Part B.
If you are already enrolled in Medicare Part A and B, you will want to shop for a Medicare Supplement and Part D - the RX drug card. The experts at CB Health Insurance can help! Medicare by itself is simply not enough coverage for most people. With deductibles and coinsurance, the out of pocket costs for Medicare along can break the bank and do serious damage on your retirement funds.
Illinois Medicare Supplement insurance and RX plans can be very confusing! There are so many options and terms - how will you ever decide which one is best for you and your spouse?
Never fear! Let the experts at CB Health Insurance assist you! With a simple phone call and getting some basic information from you about your personal situation - do you have specific Dr.'s and hospitals that you use? Do you travel out of state to a home in FL or elsewhere? Do you travel to other countries for extended periods of time? Do you take lots of medications?
By learning about you and your situation, we can help you find the best Medicare Supplement and RX plan that suits your needs! Call us today! 630-279-1739
I’m a “snowbird” – how do I need to set up my insurance?
Rain, wind, and snow? Ha! No longer for you! Since you retired, you not only successfully escaped the 9-to-5 grind, but also the weather! Six months are spent in the mild summers of the Northeast, surrounded by family...and as soon as the dreariness begins, you board your car, RV, or plane, and escape to sunnier places like Please Configure Replacements for the winter months. Or maybe a road trip!
Yes, there’s a name for the folks who enjoy this lifestyle: Snowbirds!
The only question is: Do you have health insurance coverage when you travel to another state or another county?
The answer is YES if you buy the right type of policy. You do not want to be stuck with a limited network plan that does not allow you to use providers outside of your state, or a Medicare Supplement plan that does provide some coverage for travel outside of the US. Remember, Medicare is the US government plan for people over age 65 - it does not cover you if you leave the country! And many supplement plans don't offer coverage to assist with foreign travel - so make sure you buy a plan that does!
Make sure you have the needed protection for your trips to Florida, your Carribean Cruise or your trip to Europe!
Just give us a call, and we’ll help to coordinate the Here and There and Where and What for you, when it comes to your protection plan.
Do I still need life insurance after I retire?
You just retired a few months ago and are sitting with your coffee on a rainy Wednesday morning reading the newspaper when your spouse comes in with the mail. There’s a letter from your Life Insurance Company. Your 30-year term policy is about to expire. If you’d like to renew, you have to re-apply for a new term.
Hm. You wonder…The mortgage is paid off. One of the kids is out of college. The other one will graduate in a couple of years...
There aren’t really any major expenses that your wife would face if you passed… except, of course, the cost of living, since her retirement funds are a little more meager than yours. Would she need the extra money if something happened to you? Would the kids need it?
There. You thought you had considered everything…But now you wonder: Do I still need life insurance after I retire?
You are not alone! Thousands of people are facing this question every year: “My term life insurance expired. Should I renew it?”
Unfortunately, the answer is not easy and depends on you and your family’s individual status. Sit down and answer the following questions:
- If you passed away, would your spouse have to make significant restrictions to the current lifestyle?
- Are you currently working part-time, which would be an additional loss of income?
- Are your debts paid off?
- Are your funeral expenses covered?
- Is your estate of a size that would trigger a tax burden to your family if you died?
- What’s the status of your retirement savings? Do you have enough savings to provide for your spouse for another 10, 20, 30 years?
When you answer these questions, you’ll have a better idea whether you still need life insurance during your retirement years.
Keep in mind that life insurance rates increase with age. If you had a term life insurance policy and find that you need to continue your life insurance during retirement, you will likely have to renew your policy. That requires you to re-apply and complete another medical examination. Unfortunately, we have to warn you: Be prepared for your life insurance rates to soar if you renew your policy at this stage in life.
You can save money on your life-insurance renewal by purchasing the minimum amount of coverage for as short a term as possible.
None of this applies to you if you have whole life insurance. Permanent, or whole life insurance remains active until you pass away.
A word of caution: We don’t recommend treating a life insurance policy as a savings plan for your beneficiaries. Consider a meeting with a financial planner for ways to optimize the investment of your money.
Please don’t hesitate to give us a call if you’d like to have more information about life insurance options at this stage in your life. We’d be happy to assist you!
What if I live too long? I'm afraid I might run out of money; what can I do to prevent this?
More and more seniors today are living well into their 80's, 90's and even 100 years old! If you retire in your mid to late 60's, that means you need 30 years of retirement income - no wonder so many seniors are worried about running out of money!
The stock market has seen it's share of ups and downs. Most seniors don't want to 'gamble' with their lifelong, retirement nest egg. And I don't blame them! But they still need to have some growth. A comfortable retirement income of $3000 or $4000/month will not be worth the same in 30 years after inflation has taken a toll. How will you make sure your income keeps pace with inflation without risking all your money in the stock market?
Good question! We have an answer:
Fixed annuities with a GUARANTEED INCOME Rider.
For more information on how this can help you, please contact our office at 630-279-1739.
Retirement and Long-Term Care Insurance
When you dreamed about the sunset years, you always saw yourself as a spunky, energetic retiree who climbed Mt. Kilimanjaro in her seventies, took the great-grandkids to the water park in her eighties, and passed away peacefully in her late nineties by means of falling off an apple tree while harvesting apples.
All that, of course, with no sign of major health issue or body parts refusing service.
But, unfortunately, you have to admit to yourself that this might not be the most realistic scenario.
It’s a fact that more and more retirees move to an assisted living community or to a nursing home. So, in order to plan your retirement and get your affairs in order, you consider long term care insurance. But, where to start?
As with everything that’s related to retirement, it helps to start planning early. There are various different types of long-term care, ranging from hourly in-home health care help to full-time nursing home care. And the price tag varies just as greatly, ranging from $8,000 per year to a hefty $75,000 per year for full-time nursing home care in some places.
Who is going to pay for that?
Unfortunately, long-term care is not covered by health insurance. You are responsible to pay the expenses for assisted living or a nursing home out of pocket. This is where long-term care insurance comes into play. It can protect your assets, your savings and your inheritance.
The earlier in life you start planning, the lower are the rates you pay. Consider this: If you purchase long-term care insurance in your seventies, you might likely pay monthly rates that are six times higher than if you had purchased it in your fifties!
The question is, are you really going to need long-term care insurance? Consider chronic diseases and family history. If you rely on family members, don’t just assume. Talk with them. 7 out of 10 couples over the age of 65 have a long term care claim that last longer 90 days or longer! 7 out of 10! If you are one of the 7, how will you pay for this cost....out of your retirement nest egg?
If you have sufficient funds and investible assets to carry the cost of long-term care yourself, you may opt to self-insure rather than investing in a long-term care insurance plan. The question is: How long can you afford to do this? 3 months, 6 months, a year? What if the claim lasts for the rest of your lie?
As you consider long-term care insurance, it also plays a role whether you are single or married. If you are single and can, for example, sell your house to finance the living expenses in a nursing home, you may have sufficient funds. But if you are married, you may find that only one spouse needs the care of a nursing facility while the other stays at home. In that scenario, you can expect your living expenses to double in order to accommodate both spouses’ needs.
This topic does not lend itself to an easy answer. But with a little research and planning ahead of time, you can start your well-deserved retirement with peace of mind. Contact CB Health Insurance today 630-279-1739 and let us help you to answer your important questions and arrange the best possible insurance options for you.