Retiring Early? Remember Health Insurance.

If you find yourself with a gap between retirement and Medicare eligibility, it is important to find an interim solution. Hoping you can make it a few months without medical expenses is a gamble with your retirement savings and financial future.

Consider these options

1. Short-term medical insurance – If you wish to keep premiums low and are in relatively strong health, an STM plan offers affordable, temporary, catastrophic coverage. These plans are ideal for those looking for six months of coverage or less. Application and enrollment are quickly and easily completed online.
2. Coverage through a spouse – Because retirement is a change in employment, it is a qualifying event that should allow you to enroll on your spouse’s employer-sponsored health insurance plan outside of the annual enrollment period.
3. Individual major medical insurance – Purchasing your own plan is possible if you foresee a long-term need and have no other options. Likely a last resort, individual major medical insurance is typically more expensive and more difficult to qualify for. Those with pre-existing conditions may be denied coverage or be subject to exclusions and increased rates.

Additional reading:
  Medicare.gov
    LINK: http://www.medicare.gov]
  The Hidden Costs of Retiring Early
    LINK: http://www.smartmoney.com/personal-finance/retirement/the-hidden-costs-of-retiring-early/]
  Find Health Coverage Before Medicare
    LINK: http://www.kiplinger.com/features/archives/2009/06/krr_find_health_coverage_before_medicare.html]