eShortTermHealthInsurance Blog
Wednesday, March 10, 2010
- 02
Feb
2010 -
Short Term Insurance Eases Early Retirement
Filed Under: Blogging
Short term health insurance is not just for those who have lost their job! Max Stopman, a manager with a law firm, wanted to explore the world and enjoy the rest of his life, as he had done some great estate planning. He had a substantial nest egg that he didn’t want going waste.
So, Max opted for early retirement from his company, at age 62. Medicare kicked in only at 65, and he had a three-year health insurance gap. His company’s financial advisors told him about COBRA, which provided coverage for 18 months after he left his job.
However, Max had to pay the entire premium, which would cost him a tidy sum. Max, relatively healthy, was looking at the options he had. So what are Max’s realistic options? For one, Max can opt for COBRA insurance for 18 months, and follow it up with one of several short term health insurance plans available in the market.
Another option for Max would be to purchase short term health insurance at the first instance, preferably with international coverage, as that would take care of his travel insurance needs as well. Lastly, of course, Max could opt for long term health insurance. Short term insurance, however, probably gives Max the best value for money.
