Protecting Your Spouse’s Financial Health Part I

What do you think the number one concern of affluent Americans is? Scott Keffer, a renowned financial expert, says that people age 65+ with $1-5 million in assets are most concerned about the health of their spouses. That makes sense when you think about it.

It makes sense for two reasons. One is that we know the cost of healthcare is extremely high. Healthcare costs are a concern for every older American. The American Association for Retired People (AARP) reports that the bankruptcy rate is growing fastest among Americans older than 65. The main culprit? Healthcare costs. In fact, healthcare costs are the driving force behind 48% of those bankruptcies.

A second reason why affluent Americans are most concerned about their spouses’ health is love. We want the best for our loved ones. So if you’re age 65+ and you have a spouse, how can you protect your spouse’s health?

Fill any Medicare gaps
Start by reviewing your healthcare coverage. Medicare’s great. It covers many medical expenses but it’s not a complete solution. With Medicare you’re required to pay a portion of expenses through deductibles and co-payments. There are other limits and exclusions. The bottom line is that a long stay in the hospital or other medical facility could easily cost you thousands in out-of-pocket expenses. But there’s a solution.

Protect yourself with Medicare supplement insurance. It pays many of the expenses Medicare doesn’t. Private insurance companies offer this type of insurance. I know many people like a 90-year-old gentleman in Connecticut who has a $2.6 million estate who has saved thousands because he bought a Medicare supplement policy years ago.

In future posts I’ll talk about other ways you can help protect the financial impact of any health issues your spouse or you may encounter. For more information you can always call me, Gene Offredi CFP, RFC at Summit Investor Coach in Guilford at 203.453.1017.