Navigating Insurance During Changes Later in Life: What You Need to Know

Insurance shouldn’t be a scary word – but many people find it overwhelming, especially as they approach later stages in life.

For older employees, insurance needs begin to change, and the stakes feel even higher. Balancing new health concerns, eligibility for programs like Medicare, and potential gaps in coverage are just a few of the unique challenges they face. Not to mention the trickiness of life and disability insurance. Navigating these complexities requires expert guidance on health plans for senior employees.

With over two decades of experience in tailoring insurance policy solutions, the team Terri Yurek helps businesses and employees make informed decisions. Here’s what you need to know.

The Basics of Insurance for Older Employees

According to the National Council on Aging, approximately 95% of older adults (age 65 and above) have at least one chronic condition, and 80% have at least two. This makes managing health costs a priority for aging employees.

Health insurance planning needs to cover a wider range of services, including preventive care, chronic disease management, and prescription medications.

Common Types of Insurance for Older Employees:

1. Health Insurance – Essential for covering medical treatments, medications, and preventive care.
2. Life Insurance – Provides financial security for beneficiaries after the policyholder’s death.
3. Disability Insurance – Offers income replacement if an employee cannot work due to illness or injury.
4. Dental Insurance – Covers oral health issues that tend to increase with age, such as tooth decay and gum disease.
5. Home-Care Insurance – Refers to a range of supported services provided in a person’s home to assist with daily living activities.

Small businesses offering tailored insurance solutions can better support their aging workforce and help them remain healthy and financially secure as they approach retirement.

How to Choose Health Insurance and Medicare Basics

Generally speaking, you become eligible for Medicare when you turn 65, or at any age with a qualifying disability. Medicare is a federal health insurance program that provides coverage for hospital stays, medical care, and prescription drug coverage for older Americans.

While it offers substantial benefits, employers and employees need to understand how Medicare interacts with employer-sponsored health plans.

Medicare Eligibility and Employer Health Plans

When an employee becomes eligible for Medicare, they can choose to enroll in Medicare and forgo their group health plan, keep their group health plan by postponing their Medicare enrollment until the group coverage ends, or use a combination of both Medicare and group health coverage. Each employee’s situation is unique, and the steps required for each option may vary. The important point is to ensure employees avoid any gaps in coverage or late enrollment penalties for Medicare.

However, how these two plans interact with each other depends on the size of the employer:

• For businesses with fewer than 20 employees, Medicare typically becomes the primary payer, with the employer plan serving as secondary coverage.
• For businesses with 20 or more employees, the employer’s plan usually remains the primary payer, with Medicare serving as a secondary payer.

Employers need to assist employees in understanding how the coordination of benefits works to ensure that they maximize their coverage and minimize their cost.

Medicare Supplement Insurance (Medigap) and Medicare Advantage Plans

Once employees are eligible for Medicare, they may consider additional coverage options such as Medicare Supplement Insurance (Medigap) or Medicare Advantage Plans.

• Medigap policies help cover out-of-pocket costs that traditional Medicare doesn’t cover, such as copayments, coinsurance, and deductibles.
• Medicare Advantage Plans (also known as Part C) offer an alternative to traditional Medicare by providing all Part A and Part B benefits through private insurers. These plans often include additional benefits, such as vision, dental, and prescription drug coverage.

Reviewing Coverage Annually

As healthcare needs change, employees must review their insurance coverage annually. Health conditions may evolve, and new policies or better plans may become available.

Employees should evaluate whether their current employer-sponsored plan, along with Medicare, continues to meet their medical needs.

Life Insurance: When and Why It Matters

As employees near retirement, life insurance helps provide financial protection, particularly for those with dependents or significant debts. A life insurance policy helps ensure that loved ones are cared for in the event of an unexpected loss.

There are two main types of policies for older employees:

1. Term Life Insurance: Offers coverage for a set period (e.g., 10-20 years) and tends to be more affordable. It’s ideal for those looking for temporary coverage to meet specific financial goals like mortgage payments or college costs for dependents.
2. Whole Life Insurance: Provides lifetime coverage, accumulating cash value over time. This option can be more expensive but offers long-term security and can be used as an estate planning tool.

For older employees, choosing the right life insurance policy can offer peace of mind, particularly when planning for retirement or supporting family members.

Disability Insurance: Protecting Income as Retirement Approaches

Disability insurance offers protection against loss of income due to illness or injury. As employees age, the likelihood of facing health-related challenges increases, making this coverage especially important. According to the CDC, over one in four adults will experience a disability during their career, underscoring the importance of having a safety net in place.

There are two main types of disability insurance:

1. Short-Term Disability Insurance: Provides coverage for temporary disabilities, typically lasting between 3-6 months. This is ideal for short-term injuries or recoveries from surgeries.
2. Long-Term Disability Insurance: Kicks in after short-term coverage ends and can last for years or even until retirement. It’s designed for more serious conditions that prevent employees from returning to work.

For older employees, having the right disability insurance ensures they’re financially protected, even as health risks increase with age.

The Role of Small Businesses in Supporting Older Employees

As employees age, their insurance needs become more complex, and it’s the responsibility of small business owners to ensure that their workforce is fully informed and well-supported. Detailed and easy-to-understand information about health, life, and disability insurance helps older employees make informed decisions that align with their unique needs.

Practical Tips for Small Business Owners:

1. Offer Regular Insurance Reviews: Help employees, especially older ones, review their insurance policies annually to ensure their coverage still aligns with their healthcare needs.
2. Provide Resources on Medicare: Since many employees over 65 become eligible for Medicare, offering educational resources on how it interacts with employer-sponsored plans can help them make informed decisions.
3. Encourage Financial Planning Discussions: Partnering with financial advisors or hosting workshops can help employees plan for retirement and understand how insurance plays into that future.

To navigate this challenge, small businesses may want to consider partnering with a trusted insurance broker. They can provide expertise on the insurance landscape and help make sure policies offered meet both the employer’s and employees’ needs. Brokers can also assist in explaining complex policies and help older employees understand supplemental options, ensuring that coverage gaps are minimized.

Insurance Policies Should Never Be Complicated, No Matter the Stage of Life

As employees age, their insurance needs shift – but those shifts should never add stress or confusion to their lives. Proactive businesses can help create an environment of financial security and peace of mind.

Insurance doesn’t have to be a burden. Instead, it can be a tool that empowers individuals to navigate life’s changes with confidence.

Small businesses can help by facilitating open conversations about insurance options and offering the resources employees need to make informed decisions.

If you’re looking to simplify and tailor your insurance planning, whether as an employer or an employee, working with a knowledgeable, local broker like can make all the difference.

Contact Terri Yurek, a Trusted Partner in Personalized Insurance Solutions

Terri Yurek Insurance Services specializes in providing personalized, expert advice for individuals and businesses navigating the complexities of insurance. Reach out to see how we can help tailor insurance solutions that evolve with your changing needs.

Contact us today!