You may have missed it, but Ash Brokerage held a debate to determine which product should be the official product for clients turning 65. The candidates were Medicare, annuities and long-term care (LTC) and each contender made a compelling argument.

Spoiler alert: we took a vote, and our audience crowned Medicare the winner. Do you agree? If you were in the audience, who would you vote for?

Each product brings value and has its own strengths, but no one can stand alone.

Our debate was mainly for bragging rights—a solid financial plan incorporates a number of products to meet a client’s needs. Understanding how these products intersect creates true protection and can make retirement planning less stressful. Here are some of the key features of each one.

Medicare

Carly Rosswurm  Director, Medicare Solutions Ash Brokerage

Of the products represented in our debate, Medicare is the only one required for those turning 65, but enrollment choices and timing are often complex. Enrolling in Medicare is not optional, but enrolling at the right time is critical to avoid late penalties and/or large coverage gaps. Medicare comes with its multiple parts: A, B, C and D. Add to that the challenge many face deciding when and how to enroll.

Medicare coverage reduces huge healthcare costs retirees face by establishing “Medicare allowable amounts” for hospitals and doctors, limiting bills substantially. But without supplemental coverage out-of-pocket costs remain. To cover these expenses, Medicare supplement plans, prescription drug plans and Medicare Advantage plans are essential. Note: Medicare covers only limited long-term care (100 days skilled nursing) and does not cover custodial care or extended LTC costs.

Pros of Medicare include:

• Reliable baseline coverage
• Significant cost reduction
• Universal eligibility at age 65
• Broad provider networks

Cons include:

• Medicare not covering extended long-term care and legislation that changes each year
• It can be complicated to understand enrollment windows
• Coverage varies by ZIP code

Having an expert partner is essential to helping clients through their annual enrollment. In our debate, it is argued that “strong Medicare coverage is the cornerstone of a sound retirement financial plan.”

Long-Term Care

Though long-term care isn’t the flashiest product, in the moment of need, it is extremely impactful. Long-term care covers home care, assisted living and nursing home services related to aging — think chronic illness that makes it difficult for clients to perform basic activities of daily living.

Care costs have risen 45% over the last three years, making this protection more important than ever. Note: Medicare offers very limited LTC coverage, and Medicaid only kicks in once assets are nearly depleted. So, to avoid relying on Medicaid’s strict eligibility and limited care choices individuals can take personal responsibility through LTC planning.

Pros of long-term care include:

• Freedom of choice for care settings
• Protection of assets
• Reduced stress should an extended health care need arise

The cons include:

• Premium costs
• Differing benefits depending on policy structure
• Perception that LTC planning is optional, rather than necessary

LTC planning should begin earlier than 65—ideally when clients are in their early 50s or 60s, especially as people shift focus from family to retirement needs. Waiting too long to apply often limits coverage and raises costs. LTC insurance funding can be combined with life insurance cash value or annuities for premium payment flexibility. At Ash, we help advisors compare many different LTC plans to ensure the right fit.

Annuities

To put it simply: Medicare protects your health and LTC protects your independence. So, what do annuities protect? Unlike health products, annuities provide guaranteed payments for life, even after the initial premium is paid (unlike many LTC solutions or Medicare supplements that stop when payments stop). Annuities are a great tool to combat longevity risk and market volatility, offering retirees a predictable income floor to pay for essentials — such as mortgages, daily expenses and even LTC and Medicare premiums. With longer retirements expected, guaranteed income streams become essential to preserve lifestyle over 35 or 40 years.

Pros of annuities include:

• Predictability
• Guaranteed income
• Flexible options
• Tax-deferred transferable assets

Cons of annuities include:

• Limited liquidity in early years
• Complex contracts
• Potential fees if incorrectly structured

So, who gets your vote?

Hopefully you’ve concluded that one product alone isn’t enough. A comprehensive retirement plan includes Medicare, long-term care insurance, annuities and (potentially) life insurance for estate planning. Individualized planning is crucial, requiring thorough fact-finding to understand each client’s needs, family status, income and funding options.

Guaranteed income from annuities can form a solid foundation to cover Medicare and long-Term care costs. Combining these products offers the most secure and well-rounded retirement strategy, ensuring that clients are financially protected in multiple areas, creating peace of mind and stability throughout retirement.

No rebuttal needed

The products discussed in this debate can be complex, requiring skilled advisors to provide guidance.

The only thing that is not up for debate is the value of your Ash team. In-house experts make navigating these choices immensely easier. We keep up with the intricate details you can remain focused on your clients’ needs.

Retirement is not about choosing one product and sticking with it forever, rather it’s about combining them strategically. Together, these products create a financial peace of mind that all retirees deserve.

Check out the replay to catch the complete debate.