March-April 2021

WHEN IT COMES to retirement, many people often don’t give enough thought to the difference between health insurance and healthcare, especially if they want to stop working before Medicare kicks in at 65. In fact, says Danny Smith, president of Daniels Financial Group in Ohio, people often unnecessarily confuse themselves by mixing up the nomenclature. “The term ‘healthcare’ when used to describe insur- ance is really a misnomer,” says Smith. “For example, we call it Medicare, when it really is insurance.” “Care is what you get when you go to the doctor or hospital. Insurance is what helps to pay for the care,” he adds. “The lines have become blurred to the point where when people ask, ‘How much will my healthcare cost?’ they actually mean, ‘What will the premium be for my insurance?’ Such distinctions become criti- cal because people can either under- estimate the costs or don’t properly plan for them, Smith and others say. And when it comes to factoring in how to pay for the insurance and care, various avenues could help, including reverse mortgages. “So many families struggle with medical debt and other unexpected expenses that drive them into tough Health Insurance Can Make or Break Retirement Experts Discuss Factoring Health Into ‘Plan A’ By Thomas A. Barstow Danny Smith 24 REVERSE MORTGAGE / MARCH-APR I L 2021