Planning for financial concerns involves much more than making smart choices among stocks and mutual funds. Your clients need to organize their financial lives to preserve income and manage their money to ensure they have enough to live on through an increasingly optimistic life span.
A significant financial burden, especially for the senior population, will be medical expenses. Insurance premiums, deductibles, and copays can cut into retirement earning, but having to manage without insurance can be devastating when the inevitable health problem arises. For these reasons, every financial advisor should include Medicare information for clients.
New to the industry? Start here: Medicare Basics for New Senior Market Insurance Agents
Cost Burdens for Aging Seniors
As we get older, our bodies can become time bombs. It’s not a matter of whether a health issue will occur but when. For an aging population, the potential cost is astronomical.
This is a critical area for financial advisors to address. Giving advice to clients on what to do with the money and expenses they already have may not be that demanding, but your greatest value comes in helping people prepare for the unknown.
By providing information on Medicare, you educate your clients about the best available government programs to manage these health care cost burdens. You have to make time to learn about the options and understand both how the cost structure works and what Medicare does and does not cover.
Understanding Medicare Options
Medicare coverage includes mandatory sign-up periods for which you need to prepare your clients. Also, many people get confused when trying to understand the differences between Part A, Part B, Part C, and Part D. The premium structures, the coverage, and the limitations on coverage can start to overlap. As a financial advisor, your job is to provide clarity for your clients.
Before you can do any of this, though, you need to understand the options. By keeping a copy the Medicare & You handbook close, you can study and learn how best to advise your clients on what coverage they require, and what coverage they may need in the future.
From here, you need to learn how to handle the areas in which Medicare will not help. Clients will probably need eye care, foot care, hearing care, and even long-term care that Medicare does not cover. You need to find supplemental coverage options for the policyholders whose needs extend beyond what basic Medicare plans provide.
Don't Want to Learn About Medicare?
You're busy - we all are - and you may not have the interest or the time to learn something new. You should still have an overall understanding, but if you don't want to learn the ins and outs of Medicare, consider partnering with a senior market agent. Find someone who specializes in Medicare, so you can refer your clients to them and know they're getting proper advice on their insurance. If you need help finding someone to partner with on this, let us know.
Help Everyone Needs
A famous quote tells us that only death and taxes are certain in life. To this, though, we can add health concerns as we grow older. A financial advisor must be prepared for this certainty and be ready to advise clients on their needs and work through possible solutions. The Medicare & You handbook is a valuable tool that keeps you up to date with changes to Medicare and the critical elements on which you need to provide guidance.
All of your clients will have a health issue at some point. Prepare yourself to help them handle it, and your business and reputation will improve.