How can I prepare for medical or long-term care?

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Edward Jones - Chad Choate, AAMS

Posted on

Mar 24, 2021

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Florida - Sarasota, Bradenton & Charlotte Counties

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Before you can address these costs, it's important to understand what Medicare and other insurance cover.


We can help you do just that so you can make the decisions that are right for you. In general, youll have two types of medical expenses when you retire: traditional and long-term.
Traditional medical expenses
Medicare is designed to cover traditional expenses, such as doctors visits, prescriptions, in-hospital expenses and wellness exams. However, you'll still need to budget $4,000 to $6,000 a year to cover out-of-pocket costs Medicare doesn't pick up including premiums and deductibles as well as any supplemental insurance.
Below is a quick overview of Medicare Parts A and B costs and coverage.
Standard Medical Components

*Source: Medicare, Kaiser Family Foundation, Edward Jones estimates.
Medicare doesn't cover most long-term care costs
Of all the expenses Medicare doesn't cover, long-term care is potentially the biggest. This type of care includes nursing homes, assisted living, in-home health care and adult day care. Costs vary according to the type and amount of care, but the price tag can add up: Using an average nursing home stay of 2.5 years, you'd need more than $200,000 in todays dollars to cover this cost and that doesn't include the effects of inflation.
You can pay for long-term care by adding these costs to your budget or insuring against them. If you decide to pay for them out of pocket, your Edward Jones financial advisor can look at your entire financial picture and help you determine if your portfolio can withstand this potential cost.
Another option is to purchase some form of long-term care insurance. The policies and costs can vary dramatically, however, based on your age, health and gender, as well as the amount of coverage you desire.
Your Edward Jones financial advisor can help you evaluate the following:

Amount of coverage
Look for a policy that offers the highest amount of long-term care coverage relative to other options, assuming the same premium.
Potential for rising premiums
Insurance companies can raise their premiums even after you've purchased a policy. Make sure you read the fine print. Your Edward Jones financial advisor will work with you to make sure you understand all of this.
Benefit of insurance vs. the risk of not needing it
As with any insurance policy, there's always the possibility that you'll pay for coverage you'll never use. But given the large potential costs of a long-term care stay, its important to weigh the cost of insurance with the risk of needing care and not having coverage to pay for it.

Health care costs are important, but they are also just one of many factors to consider when you look at your retirement picture. That's where your Edward Jones financial advisor comes in. By getting to know you and your whole financial picture, he or she can work with you on a personalized strategy to fit your needs.

Written & Submitted By: Edward Jones- click for more information*

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Hello, I'm Chad Choate a dedicated financial advisor in Bradenton, FL, I began my career with Edward Jones in 2017. As a financial advisor, I want to find out what's important to you and help you build personalized strategies to achieve your goals. As a lifelong Manatee County resident, I graduated from the University of South Florida and was a teacher in Manatee County before joining Edward Jones. My driving force is to change people's lives in a positive way, and what better place than my home to do that. Whether you're planning for retirement, saving for college for children or grandchildren or just trying to protect the financial future of the ones you care for the most, we can work together to develop specific strategies to help you achieve your goals. We will also monitor your progress to help make sure you stay on track or determine if any adjustments need to be made. Throughout it all, we're dedicated to providing you with top-notch client service. But we're not alone. Thousands of people and advanced technology support from our office can help ensure you receive the most current and comprehensive guidance. In addition, we welcome the opportunity to work with your attorney, accountant and other trusted professionals to deliver a comprehensive strategy that leverages everyone's expertise. Working together, we can help you develop a complete, tailored strategy to help you achieve your financial goals. I currently volunteer with the Manatee Hurricane football Broadcast and Booster Club, serve on my church's trustees council and have previously served as a leader in Young Life. I am a member of the Manatee Chamber of Commerce and an alumnus of their Leadership Manatee program. I have been married to my childhood sweetheart, Ashley, for 15 years and we have a son, Wesley, and daughter, Camryn. We enjoy watching our children play their sports and traveling as a family.

Edward Jones - Chad Choate, AAMS

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