No matter how hard you worked or how much you saved, the sad reality of today’s economic landscape is that the rising cost of health care can quickly eat away at your retirement fund. Rather than wait for Washington or the health care industry to come up with a solution,
many are taking a proactive approach and tackling the problem head on.
Make sure to always talk to your financial advisor before taking any action, but here are some creative ways to tackle rising health care costs.
Maximize your social security benefits
It might be tempting to start claiming your benefits as soon as you’re eligible, but wait (if you can). Especially if you’re currently healthy, try to defer your benefits until you’re 70. If you do, your payments will increase by as much as 75 percent.
Sell your life insurance
A life insurance policy is an investment. Periodically, you should review your policy to see whether or not it’s still needed. If your medical bills have gotten too high or you can no longer afford to pay the premiums, consider selling your life insurance policy through a
life settlement. This can be a quick way to relieve financial strain and deal with health care bills.
Consider a reverse mortgage
This is a loan available to homeowners that allows them to convert part of the equity in
their homes into cash. The loan is called a “reverse mortgage” because instead of making monthly payments to a lender, as with a traditional mortgage, the lender makes payments to the borrower.
Buy long term care insurance
The costs of living in a nursing home or hiring a home caretaker can be staggering. Long term health insurance can be cost costly but if you start during your early to mid-50s, you can buy in at a lower rate and defray the expenses that you might not be able to afford.
To learn more about your options visit www.lisa.org
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