Planning for Retirement–Do You Have a Life Insurance Policy?
There was a time when many people thought longingly of what they’d do when they retired. Interesting to note, however, is that since people in the United States are living–and working–longer, many Americans are choosing not to retire. Instead, they launch new careers, engage in entrepreneurial endeavors, and other life-enriching activities.
According to a 2013 report from The State of Aging and Health in America, by 2030, the remaining members of the baby-boomer generation will all be 65. Furthermore, there will be 72 million older adults by then.
By 2050, there will be over 89 million Americans aged 65 and older, according to The State of Aging and Health in America’s 2013 report.
In a 2014 Gallup poll that surveyed members of the baby-boomer generation that were still working, approximately weren’t planning to retire until age 66 or beyond. Approximately one-out-of-ten indicated that that they never planned to retire.
A 2015 CareerBuilder survey conducted with Americans 60 and older discovered the following about these senior workers’ retirement plans:
- Will continue to work after retiring from current career: 54%
- Will work part-time: 81%
- Will work full-time: 19%
When you continue to work after the traditional retirement age, are happy, and have a healthy and active lifestyle, life insurance claims are probably not on your mind. Unexpected health issues may still arise, however, and with them, the potential for added medical costs.
If you’re living with a chronic health condition, however, this can create additional challenges, including unforeseen financial burdens.
Americans, according to a 2014 report from The Commonwealth Fund, have higher rates of chronic health issues than in other countries. Two of the more prominent health conditions are diabetes and heart disease. Approximately 87% of older Americans have a minimum of one chronic illness or condition, and 68% have more than two.
When making investments, many people choose to purchase life insurance policies to add to their portfolios. When considering life insurance claims, these benefits are traditionally disbursed in the event that a parent or spouse dies. Some policies can be disbursed prior to death to assist with medical and other emergencies.
According to a 2014 report from The Commonwealth Fund, approximately 21% of Americans state that they had to pay $2,000 or more throughout 2013 for uncovered medical expenses.
Medication costs aren’t always completely covered by Medicare. In 2016, for example, a medicare enrollee is responsible for paying 45% of their brand-name medication costs, which was the same in 2015. Generic medication copays are 58% of the total cost, which is slightly down from 2015, when the shared cost was 65% of the total price.
Depending on the total cost of these medications, as well as how many an individual will need to take, this can add up to a major cost that can affect quality of life, creating stress and depression where none existed before.
If you already have a life insurance policy, then you know that coverage can be purchased at various benefit increments ranging from $10,000 upwards into the millions. Currently, approximately three-in-five Americans have some form of life insurance. When polled, an additional 34% indicated that they were considering it within the year.
Approximately 40% of the Millennial generation has shown interest in purchasing a combined life insurance and long-term care policy. Given the total number of consumers polled, 25% indicated they would be interested in this type of combined policy.
Have you recommended life insurance to someone you know? In 2015, 55% of those polled said that they would recommend life insurance, and in 2016, a poll showed that this number had increased by 11% to 66%.
This survey also indicated that most people, approximately 86%, agree that some amount of insurance coverage is needed. When making an investment in life insurance, it would also be a good idea to determine additional supplement plans such as medicare supplement insurance.
When the time comes to file a life insurance claim, knowing that some of the costs associated with medical needs, including long-term care, have been taken care of, can bring some peace of mind. When purchasing any type of life insurance policy, your insurance firm will be able to provide you with detailed information on how your life insurance claim will be disbursed to your spouse or family.