As the population in the United States ages, the fear of not having enough for retirement has substantially increased. Throughout the country, more and more corporations are cutting back pensions and retirement benefits that puts individuals at risk in case of a medical event. Additionally, the recent extended low-interest environment has hampered the growth of safer investments such as bonds, CDs, and savings accounts. With the low-interest environment, pull-back on pensions, and possible reforms of the U.S. Social Security System, the financial risk at retirement has grown tremendously and many people have found themselves to be short of what would be considered necessary.
The reality is, when it comes to healthcare in retirement, Medicare does not cover many costs. According to a recent research report from the EBRI Education and Research Fund found in the May 16, 2019 No. 481 Issue:
“...a couple with drug expenses at the 90th percentile throughout retirement who wants a 90 percent chance of having enough money for health care expenses in retirement by age 65 — targeted savings are $363,000 in 2019.”
As you progress through retirement, you can expect healthcare costs to increase due to various rising risks such as dementia, cardiovascular issues, and need for long-term care. Are you financially prepared to not only cover medical costs, but to financially survive afterwards?
With the challenges that many individuals face as health care costs increase, we can not stress enough the importance of life insurance with living benefits. Living benefits is the lifeline that helps cover your gap in being able to afford healthcare and financially survive afterwards. The advantage of Living Benefits is being able to tap into the life insurance resources you already have to be able to afford healthcare.