How can I pay for medical care after retirement?

• Use your employer health-care coverage as long as possible. Then, after age 65, purchase Medicare Parts B and D: 
  
  
  • Part B covers most doctor, hospital, and related expenses.
  • Part D provides a prescription drug benefit.
• Never drop one type of health-care coverage until the new or replacement coverage is in force.
• Remember that Medicare is not a free pass; in fact, it may only pay about half of your health care expenses.  Allow for out-of-pocket expenses and premiums, some say as much as $225,000.
• Examine long-term healthcare insurance options carefully; the costs may outweigh the benefits. To make the right choice for you, get unbiased professional advice about your options.
• Most retired Americans do not need life insurance, except perhaps to cover burial expenses.
• Consider having a portion of your savings in an immediate fixed annuity (a financial product that provides a guaranteed monthly income over your lifetime or a period of years). Study and compare these products carefully, and make sure you buy an annuity that is adjusted for inflation at a reasonable cost.
• Don’t purchase insurance products unless you understand how they work.

More about Insurance

• Medicare and Medigap
• Long-term Care Insurance
• Life Insurance
• Longevity Insurance