Healthcare is one of the largest expenses for people in retirement, but it’s not easy to budget for them. Sometimes, accidents happen, or certain health-related concerns can come out of nowhere. Because of how difficult it can be to predict; it can be just as difficult to plan for it. But luckily, there are tools out there that help you save on healthcare costs and protect your budget against a sudden, unexpected healthcare expense.
Health Savings Accounts (HSAs) can be an important piece of your healthcare puzzle. These are individual retirement accounts that can be contributed to for the purpose of spending on healthcare needs in retirement. Any qualified health expense is completely tax-free, and after 55, you can use your holdings for any expense penalty-free and tax-free.
Permanent life insurance can be another option for paying for unexpected costs in retirement such as health-related expenses. This is because permanent life insurance builds cash value as you pay into it that can be withdrawn or loaned against to cover costs.
Annuities sometimes come with riders, or add-ons, that protect against specific risks. An inflation annuity rider can help pay for the unexpected event of increased inflation. As we’re seeing now, inflation can be a factor in market downturns and can tighten our budgets. But it’s hard to predict if and when inflation may occur. That’s why an annuity rider that adjusts its payout amount based on inflation levels can help protect against the unexpected cost of inflation.
Long-term care annuity riders can also help you cover the costs of long-term care coming at an unexpected time. If an illness, injury, or disability emerges, receiving long-term care, whether in-home or in a facility, can pose a major burden to your budget. With an annuity rider for long-term care, the cost of this expense can be reduced.
In addition, disability or illness riders can kick in, paying out distributions over time or a lump sum if you become disabled or experience a qualified illness. Usually, qualified disabilities or illnesses are ones that prevent you from working.
If an unfortunate event happens, it can pose a major cost that can be insurmountable without the proper protection. That’s why it’s important to know of and utilize the tools out there to protect your finances against unexpected costs.
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Unexpected costs can change your retirement completely. But if you’re prepared for them and have taken the necessary steps to protect against them, your retirement plans can stay on track despite an unforeseen event that would otherwise throw a wrench into your plans. If you’re wondering how best to protect against the specific risks to your retirement plan you’re worried about, contact us at (540) 720-5656.
- Source: Inspired from ProtectedIncome.org
Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Chase Lopez joined the ILG Financial team in 2020 as an advisor. Chase is a 2016 James Madison University graduate with a degree in management. Chase has been trained under the tutelage of Dave Lopez, who is not only the founder and managing member of ILG Financial, but also is Chase’s uncle and godfather. He also enjoys working alongside his cousin, Megan, who is Dave’s daughter. Chase, as a fiduciary, believes in putting his clients interests first, and building out plans for his clients where they can have a happy and fruitful retirement. He married his beautiful wife in February 2022 and both use most of their free time chasing around their little pup, Aurora.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.