It seems like in today’s society there is insurance for everything: our cars, our houses, our mortgages, our valued possessions inside our houses, our health, and even our own lives are insured. Why do we spend all of this money on insurance? Because life happens, and sometimes we are not prepared for it, so we pay insurance companies to be prepared for us. There is one particular generation that has been targeted for a new type of a health insurance option: the Baby Boomers.
These Baby Boomers make up an unusually large generation that resulted from the return of the soldiers from WWII. Members of this generation are beginning to reach the age where long term health care is becoming a serious consideration. While Baby Boomers are now approaching their sixties and seventies. With such a large elderly population the medical industry will be affected greatly. Expenses related to health problems can easily wipe out an entire savings account within a few years. So what can Baby Boomers do to arm themselves against financial ruin? The short answer is to simply plan ahead, and speak with an insurance expert, However, there are several options to consider that I have elaborated on below.
First we must dismiss a common misconception that Medicare will pay for all long term medical care. This assumption may just lead you down the path to financial ruin. The fact is that “Medicare covers skilled nursing facility care only after a three-day hospitalization.” In order to receive the proper care that most Baby Boomers will need, long-term health insurance would be a safe but somewhat costly alternative.
When considering long term health insurance, I would recommend that you apply as soon as possible. The premiums for these policies take into consideration age you are when you apply. The premium will actually increase almost 10% for each year you wait. Like most insurance companies they will offer lower rates for “low risk” candidates, meaning that if you are in good health when you apply, your rates will be lower. There are also packages available for husband and wife together. Some the government also offers tax deductions as well, to encourage Baby Boomers to become insured. So if you are approaching the age where your health may become an issue, I would strongly recommend that you consider long- term health insurance.
Premiums range from around $750 a year for a healthy 55 year old to over $3000 a year for a standard health 65 year old.
It is not too late or too expensive to protect the money you have so long to save. It would be a shame to see your earnings drain, because of lack of insurance coverage. Research the possibility that just may protect your financial well being. You have worked long and hard enough, you should be able to use your savings to have some fun while you are retired. Do not let medical emergencies take that opportunity away from you.
I gathered my information and used a quote from this site which will provide you with more specific information.