Health Insurance Tips for Early Retirees

Retirement is a significant milestone that requires careful planning, especially for those who intend to retire early.

One of the most critical aspects to consider is health insurance.

To help you understand your options and ensure you have adequate coverage, the team at 314 Insurance Advisors stands ready with comprehensive guidance.

Health Insurance Options

Health insurance can play a critical role in ensuring you can access essential medical services and preventive care, such as checkups and screenings. However, when retiring early, you may need to seek alternative options to maintain coverage. Consider the following possibilities:

• Private health insurance—Private health insurance may be your most expensive but most flexible insurance option. When considering these policies, it may be worth pricing this option and comparing it to other insurance while also considering its customization possibilities.

• Consolidated Omnibus Budget Reconciliation Act (COBRA)—COBRA may allow you to retain your existing coverage previously obtained through an employer for up to 18 months after leaving your job. This can be a viable option for bridging the gap until you’re eligible for Medicare.

• Spousal benefits—Although you may be planning to retire, if your spouse is still working and has access to employer-sponsored health insurance, you may be able to get coverage through their plan, albeit at greater costs.

• Health savings accounts (HSAs)—An HSA is a tax-advantaged savings account that allows you to accrue funds to eventually be used for medical expenses. If you’ve been contributing to an HSA while working, you can often use these funds to pay for health care costs in retirement.

• Part-time employment opportunities—Some companies offer health benefits to part-time employees. These could help cover health costs while transitioning into full retirement.

• Health care sharing programs—These programs typically involve a group of individuals who share each other’s health care costs. While not the same thing as insurance, they can be a cost-effective way to manage health care expenses.

We’re Here to Help

While often an attractive opportunity for those who are positioned to do so, retiring early requires careful planning, especially when it comes to insurance.

By working with a qualified insurance professional and considering all available options, you can protect your health, well-being and financial interests.

At 314 Insurance Advisors, we’re eager to help you enter this new chapter of your life while maintaining adequate health coverage. Visit our website or call 502-265-0906 to get started today.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.