For any American who wants to retire early, the health insurance gap can be one of the biggest obstacles. If you retire before qualifying for Medicare, you should secure other health insurance to protect yourself and your family. But what can you do to get the coverage you need without breaking the bank? Here are a few things to do.
1. Stay Healthy
One of the best things you can do for insurance costs is to keep yourself healthy, mentally and physically. Stress, lack of exercise, an unhealthy diet, smoking, and other bad habits can cause more health problems, which result in more insurance needs, more doctor appointments, and higher prescription drug costs. Staying healthy is often a challenge for those who want to retire early, so you must find a balanced way to achieve your goal.
2. Shop Around
Finding the best insurance coverage for the lowest price begins by shopping around to learn about all your options. Rather than resign yourself to one choice, such as COBRA coverage through your final employer, consider everything from your state's ACA marketplace to private and individual coverage plans.
3. Prepare Early
Even if you aren't yet ready to pull the trigger on early retirement, learn what to expect. Get insurance quotes now as though you were retiring today so you can get an idea of how to budget for them. Talk with a qualified broker to learn more about the insurance market you'll retire into. And start adjusting your retirement budget plans early so you have time to work on it.
4. Fund Insurance
Will the cost of health insurance on your own be too onerous on your early retirement budget? Then consider ways to specifically fund this particular expense. You could take on some consulting work, a side hustled, or a part-time position with the goal of earning just enough to cover this bill, for example. Remember that you should only have this gap until you can make standard retirement arrangements.
5. Consider Alternatives
Today's retiree has a number of options to help tailor their coverage and fit their budget. A variety of traditional insurance policies keep costs low by adjusting what's covered and for how much. You may opt to self-insure or take on higher deductibles to gain lower premiums. Prefund a Health Savings Account. Or look into cooperative options through organizations and industries you belong to.
Where to Start
The best place to start planning for your early retirement health insurance needs is by meeting with an insurance agent or broker in your state. By learning all your options and exploring costs, you can find the ones that will fit your needs, no matter what they may be. Call today to make an appointment for a health insurance quote.
