3 big reasons Medicare supplemental insurance makes sense now

The timing surrounding the securing of any insurance policy is always critical and can understandably be difficult to get right. Lock in a plan prematurely and you may wind up paying for coverage you don't need and can't really use. Wait to apply for a plan later in life, however, and you could easily risk being disqualified or see yourself getting saddled with higher premiums for less robust coverage. So the timing here is important to get right, particularly for older adults with budgets heavily reliant upon retirement savings and Social Security. For these seniors, the timing surrounding the opening of a Medicare supplemental insurance plan, for example, can be the difference between being fully covered or not.

This unique insurance plan, also known as Medigap, can cover the items left outstanding by a traditional Medicare plan. So items like co-pays, deductibles, co-insurances and more will no longer need to be paid via check or the swipe of a credit card. Instead, your Medicare supplemental insurance policy will kick in and cover many remaining balances, which inevitably will become a more common occurrence with age. That said, it doesn't always make sense to purchase a plan, as the timing concerns apply here as well. 

However, for many American seniors, there's actually a compelling case to be made for securing a Medicare supplemental insurance plan right now. Below, we'll detail three reasons why it makes sense to act promptly.

View rates from the top Medicare supplemental insurance plans online today.

Why Medicare supplemental insurance makes sense now

Here are three big reasons why pursuing a Medicare supplemental insurance plan makes sense now:

Your retirement savings are lower

Even before the economic developments in recent weeks likely damaged your retirement savings, many Americans already saw a dent in what they had stored away thanks to inflation and higher interest rates (among other factors). For example, $3 trillion in retirement savings were wiped out in the first half of 2022. And while the market bounced back after that, it's been a bumpy ride for even the most diversified savers and investors. 

Against this backdrop and with the state of the economy hard to predict, your retirement savings in their current form may simply not be sufficient to cover Medicare deductibles, co-pays, co-insurances and more. The financial assistance Medicare supplemental insurance offers can be critical in this climate. That noted, this type of insurance isn't free, either. So it's important to calculate the costs of a plan versus what you're likely to pay out-of-pocket to determine which is more cost-effective for you right now.

Compare your Medicare supplemental insurance plans here now.

Your medical needs have changed

Your medical needs inevitably change over time, and physician appointments tend to increase in frequency. At one point in time, your regular Medicare coverage may have been more than enough to cover your needs. But that may no longer be the case. If you find yourself making more and more appointments, including those for tests and exams, and find yourself opening the mailbox to find additional bills, then it may be time to add the buffer of a Medicare supplemental insurance plan. Adding another layer of insurance protection makes sense when the alternative means paying additional bills straight out of your already limited budget, particularly if you already know that your medical needs will inevitably increase in the months and years ahead.

Your costs will increase

Like many insurance policies, waiting to enroll when you need it simply doesn't make sense. Medicare supplemental insurance is no different. If you know you'll need the support a plan can provide in the future, it's smart to apply now to get ahead of those costs. Some "issue-aged" Medicare supplemental plans are tied to the age of the applicant when the policy is initially purchased, locking in your premium before it has a chance to rise in the future. This will allow you to budget properly and not have to worry about spikes in costs as you age. The downside to this is that you'll likely start paying for a plan before it's needed as much. So the cost savings will need to be weighed against your immediate needs to determine which makes more sense for your circumstances.

The bottom line

Medicare supplemental insurance can be the difference between having adequate financial protection for your medical needs right now and not. With retirement savings less robust, medical needs that are evolving and the additional expense of waiting to apply that may be able to be circumvented right now, many older Americans could benefit from purchasing a Medicare supplemental insurance plan today. Just be sure to take the time to compare the costs of a plan versus what's needed to pay for your medical needs now to better determine the value.

Have more questions? Learn more about your Medicare supplemental insurance options here.