Well, one of the things they tell you is that you don’t have co-payment since Medicare pays and then your 2ndary insurance pays the co-pay you’d otherwise have to pay. The two also sometimes have different coverage, where one DOES NOT cover and the other DOES. In those circumstances, you do have some copay.
You can ask your insurer or check the Medicare website for more info on why it’s useful to have BOTH Medicare and a 2ndary insurer. Some folks even have a 3ary insurer–H + W + Medicare. That seems a bit much to me and I prefer to save the premiums. Also, sometimes you need various PARTS of Medicare + MediGap. If you dont have a good enough prescription drug plan, you need Medicare D (I believe). I can’t keep up. H just has Medicare A & B & his BCBS. I just have BCBS.
Unless you are getting into long term care issues (and that is the tricky thing with the rules as others have mentioned on this thread - admitted hospital days, not observation days, etc), most medical providers are careful to have their services covered by Medicare because then the supplemental policy also then usually covers.
It is wise to have a supplement chosen to be cost-effective for you. When my mother was on Medicare for a while, the government was trying to help with information details on supplements - we could actually enter some of the medication she was on and figure out which supplement was best for her for coverage. It worked out great - brother loved the info and adjusted to picking a new supplemental policy.
Some people have a low cost supplement through their employer as a retiree benefit.
@iglooo yes the premiums are going bonkers for less and less included on LTC policy. I like the alternatives suggestions. Also the shared benefit.
Hanging on to our old LTC policies. Our financial guy Don was really impressed by our policies and what we pay annually.
IMHO, if someone is far enough away from retirement, setting up a separate investment fund specifically to help cover this potential expense, and add to the fund monthly/quarterly instead of locking in on a current LTC policy. That gives you the money to use if needed for LTC, and if you don’t use, can pass to heirs.
Dave Ramsey just talked today to someone that paid $1,000,000 towards a variable annuity that also had LTC wrapped in it for both H/W - it sounds like she overpaid and has her money making money for the agent (sales person and not a financial advisor) and the product company. She will have surrender charges - to stay in 10 years to even get her initial money out w/o loss of principal. Black Rock Investors, and not doing well either. He referred her to endorsed local provider - maybe can move with same company w/o losing money with surrender.
Writer of the two articles (link with post 6262) said at the end of one that “I won’t leave either our care as we get older or our kids’ inheritance to fate.”
Our financial guy is teaching a two part class at UAH (we went to that class, and glad we did with then following up with appointments with him for becoming our financial advisor). Tonight and May 14; and another section May 12 and May 19. Each class 3 hours. The best $49 we ever spent (the binder and materials are purchased from FMT Solutions and is called Retirement Planning Today). They cover the first half the first night (life planning, retirement expenses, retirement roadblocks, and income sources). The second night is the more in-depth material that many in the audience were not familiar with (retirement distributions, investments, risk management, and estate planning).
This thread is definitely keeping me motivated to staying up on our retirement funds and anything that is changing that will impact us with retirement.
While we spend time and energy worry about ltc and pension. Just bear in mind that some people never get to use them. My sister knew a lot of people die off soon after they retire, like recently one guy with big pension from the government just dropped off after 2 months retiring, he is about 67. I bet he had the one more year syndrome particular working for the government, never forced to retire, it seems like free money.
If one has a stream of income (pension, SS, rentals, dividends, etc.) those can be used as well for future healthcare of financial needs and can be subtracted from the monthly amounts needed to show the NET amount that might be needed from investments, insurance, or other sources. This sum can be a LOT lower than the full cost of ADL care or even skilled nursing care. “Funding the gap,” is a lot less scary and more manageable than funding the entrie cost of care.
For example, if care is $5K/month, the person gets $2K/month from SS, another 1K from pension, and 1K from pensions and small rental, the person only needs to find a source for the other $1K/month instead of trying to fund the entire $5K/month. This could be made up with a modest annuity or small withdrawals from investments, for example.
@SOSconcern, so glad you have a decent policy at reasonable rates. Too bad such policies are no longer available for folks who want to purchase new policies. Many of the new policies really do NOT seem very favorable for insureds, especially for the high premiums being charged.
Yes, I’ve noticed that at where I work too. When people retire they pass away within a few months. I asked my family doctor why that was… he said it is because they dont’ know what to do when they go home so they sit all day long. He said that is the absolutely worst thing you can do. He is 77 years old and won’t retire - I bet that is why - he doesn’t know what to do when he retires!
I think for some there is the ‘stress’ of not having the work routine, not having hobbies to go to, no social network developed (many of their social contacts were at work). My H will not be one of them - he is looking forward to retirement, stays healthy/active, and will enjoy being able to use his time on ‘projects’, some travel, etc.
I think some people in professions like physicians truly enjoy being in the job/career - I have a number around me that are in their late 60’s and into late 70’s - there is a point where they decide to retire, but it may be later than others.
I notice that when I go to work, I walk from car to building, from building to car and back for lunch, another walk from building to car. When I’m at home I surf the net on my couch with my iPad. The exercise I do by going to work is not there. Especially on the day that it’s hot. Oh boy, while I want to retire but the thought scares me, the not knowing what to do in the day. Of course, I had long unemployment for a year or more but I had my kids to take care off.
People at work asking me what to do when I retire, I jokingly said my husband and I plan to do lots of yoga. I definitely got a lot of chuckles out of the young about to wed type of coworkers but seriously, I need to think hard about what to do. Is that mean I never retire?
I haven’t really felt retired while we still have one child at home, but that one will leave the nest in a year and a half.
A lot of my exercise seems to consist of the extra trips up and down the stairs because I forgot two of the things I wanted to get when I initially set out :). More seriously, I make it a point to spend a minimum of 15 minutes on the elliptical 5x week, and when I’m in the mood, I can lose myself in music and keep at it for an hour (probably twice per week). The elliptical is easy on my joints. Once or twice a week I lift weights (I guess we call that resistance training now). I still look like a sack of stuff, especially next to my wife; I once threatened to make up bumper stickers: “Fat But Fit.”
Has anyone rigorously studied this? The death rate starts accelerating around 60, so it should not be surprising that a higher number of people die close to retirement, because they are old when they retire. But is it more than coincidence, and by how much?
@notrichenough, it would be challenging to study, because you’re interested in people who felt healthy before retiring and then had their health change dramatically. People who retired due to failing health have to be excluded, and they might have reasons to not characterize themselves honestly.
I think that people that retire due to not feeling well may be a big part of the picture of who does not live long.
Strangely here in a government job I have seen ALOT of people retire in the past few years, none died so far. I would be interested in any studies out there,
We were just on a big tour from HNL to South Korea. On the tour were a large number of retirees in their 70s and beyond, including one man who celebrated his 90th birthday and one who was 93. The tour was very hectic–bags out and breakfast at 6:30am, on the bus for many hours every day, walking a lot, and different hotels nearly every night. None of them looked to be in danger of dying any time soon. Some had been retired for quite a while, some were still working.
The 90-year-old has a part-time job, where he walks a mile 3 days a week to sweep up at a nearby business and then walks back. He was quite fit and cheery.
People who retire because their health is causing issues can be a significant part of those who do not live long. My uncle was working part-time as an adjunct professor through his 90s and finally died at 107 or so. My dad is still working at 90, but chooses his hours and cases and schedule. He does like going in M-F, so he generally does.
H finally retired at the end of 2012 & then worked for another 6 months because he was begged. So far, he has no new major health issues and is more active NOW with all the projects that have been deferred around the house than he was when working (except the many times he had to help move furniture and other things because the office kept consolidating and having moves).
“Yes, I’ve noticed that at where I work too. When people retire they pass away within a few months.”
People were kicking off where my father worked several months after they retired at 65. When my father retired at 65, his boss who was an a**, told him that he would seem him soon at his funeral. My father lived another 30 years while that boss kicked off before he even retired.
HImom, it could be the one that do tours also have the longevity gene. Wow 107, I need to redo my retirement calculator, I thought the oldest living person that just died was 117.
My friend’s grandmother just passed away at 107–she would have been 108 in September, when her mom will have the services. The friend thought grandma would be with her for weeks, possibly months–it was YEARS!
My mom retired when the “baby” was done with law school. He’s now been practicing for decades and mom golfs 3 or more days/week and does exercise and walks the other 3-4 days/week. She was golfing with a woman who was over 100 years old as well.
My grandma died at 90. She was hiking down and back up Crater Lake in her 80s. She had been a SAHM, so not sure when you’d consider her “retired.” Her spouse died of congestive heart failure about 5+ years prior. He had been retired a few decades. Longevity can be partly genetic–they were studying people who live to at least 100 and trying to find the genetic links. Not sure what happened to that study.
If you move here, be sure to bring a ton of assets so you can live comfortably. We do have an outrageous cost of living. My paternal grandma lived in Sacramento the last many years of her life. She left HI, after she decided she didn’t want to live in her house along, after grandpa died. She lived with her S & DIL.
