It can be a good quandary. Someone buys life insurance in case something unforeseen happens, or the inevitable and their heirs are left with a valuable asset. In today’s trying economic times, and as people live longer than previously expected, a life settlement may become the best choice for someone to live an independent lifestyle in their golden years.
Life or sometimes known as viatical settlement is one where someone sells their life insurance policy to a Life Settlements provider for an amount in-between the cash surrender value and the overall death benefit for an amount to be used as the individual sees fit. The Life Settlements Provider then pays the monthly fees for the insurance policy and collects from the policy when the time is due.
The past decade has not been kind to many who were counting on high interest rates from savings, or counting on equities in such instruments as an IRA or 401K. Many projections have left the elderly with far less finances at present than they believed they would be able to appreciate when they first started saving.
The upcoming election and its effect on health care is of significant interest to seniors, as many are faced or will be faced with daunting debt from medical bills. They have a choice between Barak Obama’s Affordable Care Act, or Mitt Romney’s desire to repeal and replace the law.
Under the Affordable Care Act, more citizens of the United States will have some form of insurance than under Romney’s plan. The Affordable Care Act covers more of those in the lower income brackets. The Affordable Care Act is projected to give a tax credit of $3900-$4500 to an estimated 20 million eligible by 2016. Under Romney’s plan, 10 million will be eligible for a tax deduction of $1900-$2600.
Of significant interest to the elderly is the Affordable Care Act’s ban on restrictions of lifetime or annual benefits. The older one gets, the closer they may be towards exhausting their lifetime allotment. This ban does not exist under Romney’s plan.
Obama’s plan for payment involves greater focus on preventative care and pay-for-performance incentives. Romney’s plan will shift more of the burden of health care to the states. He also wishes to put a cap on non-economic damages in malpractice lawsuits.
The next President will have a great influence on savings for the elderly in regards to their health care, as well as influencing the overall economy to improve or decline.