Will Retiree be able to afford Healthcare...


A 65-year-old couple retiring in 2007 will need about $215,000 to cover their medical costs in retirement, and increase from over $200,000 in 2006.

Keep in mind that the estimate is an average cost. If people live longer, they can have a significantly higher lifetime costs. This is why healthcare is usually the No. 1 concern among retirees. Fewer and fewer people have retiree medical insurance through their employer and if they do, they are paying for the coverage. Since Medicare doesn't become available until age 65 (unless a disability is involved), most people cannot afford to pay for coverage and retire prior to age 65. And, since the eligibility age for Social Security benefits was changed years back and is tied to date of birth, there is a possibility that in the future the same approach could be adopted for Medicare to help mitigate the cost. Medicare is projected to run short of funds well before Social Security will.

Insurance agents can help their clients plan for retiree health expenses by educating them on the magnitude of this expense. Second, they can discuss whether a health savings account, when used in conjunction with a high-deductible health care (HDHC), may be the right vehicle for their business to offer, which will allow the employees to accumulate a tax-free account which can be rolled over from year to year and used to pay for health care expenses in retirement. Third, insurance agents should have a conversation with their customers about long-term care insurance (LTCI) and assist them with getting their policies bound while they are young enough to afford them. Having adequate LTCI coverage will allow people to focus on building a nest egg to have an enjoyable standard of living in retirement without worrying about their savings being depleted by long term care expenses.

With the cost of housing, transportation, food, education and the rest of life's expenses, the public needs to develop a long-term strategy to deal with burgeoning costs. Insurance agents can be a catalyst to get their customers to begin identifying and then funding a plan to deal with these costs. Clearly, the cost of healthcare is not slowing down. It continues to outpace inflation. Having a game plan to deal with it is better than living with the anxiety of playing roulette with a retirement lifestyle. Taking advantage of the tax code to build funds tax free to help meet this obligation is the best opportunity to meet the challenge.

Remember preplanning is the best way to avoid problems in your future. If you would like a quote on long term care insurancein New York call Les Robinson at 1-800-836-2040 ext. 3014

If you have insurance questions please call Les Robinson at 1-800-836-2040 or e-mail at lrobinson@thenorthwoodscorp.com put in remarks Long Term Insurance

For a quote on your Auto and Home Insurance call Les Robinson at 1-800-836-2040 ext. 3014 or go to website at http://www.wnyinsurance-quote.com/html/quotes.html

Lester J. Robinson III, FICF, CC

Insurance Broker

The NorthwoodsCorp.

8810 Main Street

Williamsville, NY 14221

Phone: (716) 626-0004 Ext. 3014

Fax: (716) 626-5057 Att: Lester

lrobinson@thenorthwoodscorp.com

See "the ABC's of Insurance" TV show on Time Warner Cable Channel 20 in Western New York hosted by: Les Robinson