The Fight Against Rising Health Care Expenses
Health care expenses are on the rise and many seniors are left feeling powerless. Fortunately, there are a few ways to find relief.
Monitor Ongoing Medical Expenses
It’s easy to get used to a certain payment schedule for procedures or prescriptions. Be sure to continue monitoring your bills to ensure you’re not being overcharged or double-charged.
Shop Around for Services
Many physicians provide referrals when you need to go see a new doctor, but you don’t have to go to the first place they recommend. Research satisfaction rates and shop around – there are plenty of free resources to help you compare physicians, rates, and offices.
Sell Your Insurance Policy
Are your insurance policy’s costs outweighing the benefits? Consider choosing a life settlement. A life settlement can provide the foundation for the finances you need to pay for all future care expenses.
Determining if a life settlement is the right choice for you is an entirely personal matter and should be carefully discussed with family and financial advisors. There are certain standards that the policy and the insured must meet in order to qualify for a settlement. When going over options, some people find it helpful to look at the reasons others have chosen to sell to compare circumstances.
The three primary motivating factors to sell are:
1. Funds are needed to pay for medical care or some other expense.
In 1911, the United States government ruled that life insurance policies are personal property. This outcome opened up the possibility for policies to be bought, sold, and traded, just like any other high-value asset. In times of financial hardship, a person can now choose to liquidate their policy and turn it into immediate cash.
This cash could then be used to:
- Pay for assisted living
- Fund cancer treatment
- Pay medical bills
- Pay premiums on another existing life insurance policy
- Fund a business
- Pay off tax liability/debt
- Purchase an investment
- Fund the purchase of income generating annuity
2. The premiums are no longer affordable
Depending on the terms of the policy you own, changes in the insurance market could drive up the price of the premiums you pay. These changes can force some people to surrender their policy or let it lapse. For people who choose to get rid of their policy, a life settlement can be a more financially beneficial third option.
Some examples of why someone may no longer want to pay premiums include:
- Financial hardship due to medical bills, legal issues, or tax issues
- Beneficiaries refuse to pay premiums
- Premiums have escalated due to policy performance
- Financial hardship due to expensive assisted living costs
3. Your lifestyle needs have changed and the policy is no longer needed.
As the insured moves through the various stages of life, they may find that they no longer have a need for a life insurance policy. They could choose to surrender the policy, but usually, that would result in less payout. As long as they qualify, a life settlement could be a valid option.
Here some examples of lifestyle changes that could alter a client’s need for life insurance:
- There is no longer an estate tax burden
- The beneficiaries no longer need the proceeds
- Poor policy performance
- The business has closed
Increasing healthcare costs are intimidating, but with planning and careful monitoring, medical care costs can be alleviated.