With so many insurance policies currently available and the varying prices accompanying each, it can be challenging to determine which plans are cost-effective and valuable — and which just appear to be. Many people already have insurance policies covering life, health, car and even their pets. But what about seniors, who may need some added extra protection in their golden years?
For this demographic, there are two primary insurance types worth investigating: Long-term care insurance, which can help cover the costs for extra care, and Medicare supplemental insurance, which can help cover the gap left by other insurance types. Both have long-term benefits for seniors, but is Medicare supplemental insurance worth it for you? Or are you better served without it?
Is Medicare supplemental insurance worth it?
As is the norm when it comes to financial products and services, the benefits of Medicare supplemental insurance are specific to the individual in question. It may be worth it for you, however, if you fall into one or more of the following categories:
You continue to receive bills
Health insurance and Medicare Parts A and B can cover many items, but if you continually find yourself with leftover bills after both have already been applied, then you simply may not have enough coverage. Medicare supplemental insurance can help fill that gap.
For example, if you still find yourself having to pay for deductibles, copays and more — even after you apply your other insurance types — then a supplemental plan could be worth it for you and your loved ones.
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Your bill costs are higher than a plan would be
Branching off the above item, it helps to crunch the numbers. So take a look at the bills you’ve received over the last six to twelve months after all of your relative insurance policies have been applied. Then compare that total figure to what it would have potentially cost you to have a supplemental plan during that same time period.
If the former figure is higher than the second one, then a supplemental plan may be worth it for you. Just make sure to take into account any anomalies (like surgical procedures or hospital stays) that may skew those numbers in one direction or another.
You’re struggling to make ends meet
While some retirees may have substantial nest eggs to tap into, others may not. This latter group may be tightly budgeted, heavily reliant upon Social Security and have minimal retirement savings. And against the backdrop of seemingly never-ending inflation and higher interest rates that have made borrowing more expensive, many seniors may be struggling now.
While it may seem counterintuitive, then, to add another bill to the mix, it could be worth it if it ultimately leads to a reduction in costs and more money in your pocket.
The bottom line
It’s always smart to be judicious about what you spend your money on — and how much of your money you spend. This is especially true for many seniors. Fortunately, Medicare supplemental insurance may be worth the extra cost. It can be worth it if you have leftover bills unpaid by your health insurance and Medicare plans. Just crunch the numbers to confirm. And with inflation and economic concerns at the forefront currently, it could be a valuable way to protect yourself from additional financial burdens.