As older people leave the workforce, they will have to decide which priorities are most important, since their income will generally be a little more limited than before retirement, according to the Pension Rights Center and the Pension Policy Center, the average annual income in 2022 for people aged 65 or older was $29,740.
At the same time, seniors may need help choosing between different types of insurance coverage, as not all are going to be worth the extra money, although there are plenty to choose from, including long-term care insurance and Medicare Supplement Insurance are important, here’s what experts say about why you need both.
Why Seniors Should Now Buy Long-Term Care Insurance and Medicare Supplement Insurance
Experts Say While related, long-term care insurance and Medicare Supplement insurance cover different needs, the Long-term care insurance covers the cost of assistance with activities of daily living, such as dressing, bathing, and daily care, Medicare Supplement insurance covers medical needs, such as doctor visits, hospital stays, tests laboratory and more.
Larry Nisenson, chief growth officer at Assured Allies, says the two insurances serve different purposes. “Long-term care insurance specifically focuses on activities of daily living and cognitive decline,” Nisenson says. “Medicare Supplement coverage is based on the same health care services as Medicare.”
Planning for the future means you consider you might need both types of coverage. Ethan Pickner, founder of AZ Health Insurance Brokers, says that while some people choose to have just one, that coverage may not be enough.
“Older people would need both when they can no longer perform activities of daily living or need to be admitted to a nursing home,” Pickner says. “Look for long-term care insurance because you might need it later in life.”
And having health insurance through Medicare and Medicare Supplement insurance can cover many expenses, but it won’t cover them all. “Medicare and Medigap generally do not cover senior housing that offers assisted living services,” says Joy Loverde, author of The Complete Eldercare Planner, “This is where a long-term care insurance policy comes in handy.”
Long-term care insurance and Medicare Supplement insurance serve different purposes, and for some people, it may be important to have both. Compare your Medicare supplement coverage options and find the policy that fits your needs.
Long-Term Care Insurance: Essential Coverage Specially for Aging Adults
Depending on your income and other factors, you may want to buy one or the other in some cases, experts say.
“Seniors with greater purchasing power may choose to forgo paying for LTC insurance and instead pay their own way for nursing home care, personal care at home, a stay in assisted living facilities and a daycare center for adults,” says Loverde.
If you have the funds to pay for certain services, you may not need to purchase an additional insurance plan.
The only time someone wouldn’t need Medicare Supplement coverage is if they had credible coverage somewhere else, like the VA, Tricare or a retiree program,” Pickner said. “Some people choose to just have original Medicare and not have additional coverage.”
Long-Term Care Insurance for Seniors
Long-term care insurance does not have the same age requirements as Medicare or Medicare Supplement insurance, so if you need help before age 65, some experts recommend you may need to purchase a long-term care plan. long-term.
For some, your health insurance can have a big impact on the other types of insurance you need. “Medicaid clients receive long-term care coverage in their program, so a private plan is not required,” Nisenson says.
Currently, there are about 7.2 million seniors who have both Medicare and Medicaid, these seniors may not have long-term care insurance or Medicare supplement insurance.
