Do Not Forget to Include Medical Costs in Your Financial Planning

Most of us conveniently ignore to include the health insurance cost in our financial plans for future. Though you may be hale and hearty now or your company may be taking care of your health insurance, it is for a fact that you will need more and more medical assistance as you grow in age. It’s best to plan for these costs when you are no longer going to be covered by your company.

The health costs are not only bothering the elderly, but also relatively younger people. There is a growing evidence that people are feeling overburdened with health expenses even in their prime. Last year a study conducted at Harvard University concluded that health care debts were a major factor behind 62 percent of personal bankruptcies.

A lot of people today are looking for plans with high deductibles. Although these schemes necessitate out of pocket payments ranging anywhere from a thousand to four thousand dollars before your insurance company starts to cover your medical expenses, they safeguard you against any major medical problem that may arise. Many healthy Americans aged under 40 are buying such insurance plans from popular insurance websites like eHealthInsurance.com. And even employers are following suit to save money.

More and more health insurance companies are offering high deductible plans and such plans are often easy on your pocket too. The premiums of these plans are generally lower than regular health insurance products. Another benefit offered by some of these plans is the option to open a health savings account. This enables you to save tax free money for health expenses, while any unused sum can come in handy after your retirement.

However, high-deductible offers are much more likely to have caps such as maximum annual health coverage as compared to normal plans. This kind of coverage may not help you in times of need so read the terms and conditions carefully before you invest in such a plan.

You must remember that healthcare costs increase with your age and so do the health insurance premiums, especially for people who retire before qualifying for Medicare at 65. So you must buy an insurance now and bargain for the best coverage at optimum premium. You can even get insured online, and many sites offer you the option of bidding the amount for which you are willing to get insured.

Speak Your Mind