If you are considering early retirement, there are three kinds of health you need to be concerned about – Physical, Financial and Mental.

Obviously, the most important health you need to have are the financial resources needed to implement a retired lifestyle. Your financial health is your first concern. Many people have this as their first stumbling block to overcome.

In addition to financial health is the consideration of physical health.  Therefore, an individual should look into early retirement health insurance. If you have considerable financial resources, then you might want to consider a Major Medical policy. This is otherwise known as a catastrophic policy. It picks up medical expenses after you pay a significant deductible and covers you so you don’t get wiped out during a health crisis.

Specifically, when looking at early retirement health insurance it is important to take into account certain considerations.  Those considerations include issues surrounding early retirement health insurance and the choice of provider. When considering your provider be sure to check the company out using an insurance rating company like A.M. Best.

The Early Retirement Health Insurance Issue

If an individual is considering the option of early retirement, they must be especially concerned about medical insurance.  This is because medical insurance is usually provided by your present employer.  However, once the early retirement option is taken the employer is not obligated to provide that medical insurance to the employee.   Therefore, without medical benefits, the early retiree may jeopardize their health and financial security.

Additionally, the early retiree will have the option of entering into a government medical program.  However, normally the age requirement for a government sponsored medical program requires the individual to be older than what is normally defined as the age associated with an early retirement option. 

Choice Of Provider

There are many options for an individual to utilize in their search for an early retirement health insurance plan.  Some of the best ways to find an early retirement health insurance plan is to go online and search various web sites that best match the medical insurance needs with the retiree.

In addition another option for the retired individual to explore for an early retirement health insurance plan is through various senior groups. Maybe you have looked at my suggestion at a previous article: Retirement Planning Spreadsheet.  Join the AARP if you are over 50. It will be worthwhile. Some of these senior groups require a membership fee, but in return offer many benefits.  This can be especially appealing to those who are trying to live off an early retirement pension income.

Also, when looking for a provider of health insurance it is important for the early retiree to take into consideration a number of options.  Some of those options include what is the co-payment for a doctor’s visit? what is the prescription charge for each prescription filled?, what are the co-payments for any surgeries, laboratory tests?, etc.

In addition, if the retiree feels that they are healthy, they may wish to choose a higher deductible in an effort to cut down on their monthly premium. This strategy can be followed until the early retiree is eligible for government medical program.

When discussing insurance, I am reminded of a book by Venita VanCaspel a few years ago that bears reading,  Money Dymamics.

Let me know if you have any comments and feel free to write them in the comment section below. I will reply in a timely manner. I hope you retire sooner rather than later!

Jeremiah John

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