Insurance For Seniors
 Many insurance companies offer online services that you can easily find the best deals right from your home or office. The material below is intended as a guide.
As with all life senior services, please seek professional assistance
when making insurance related decisions.
Life Insurance Settlements
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| You should talk to a trusted financial advisor before making any decision. |
What is a Life Insurance Settlement?
A senior life settlement allows seniors typically over the age of 65 to sell existing unwanted, obsolete or unaffordable life insurance policies to investing financial institutions for a lump sum cash settlement.
What are the benefits of a Life Insurance Settlement?
Settlements can help seniors to:
- Stop paying premiums for unwanted policies and still receive funds higher then the surrender value offered by the carrier.
- Use funds for retirement.
- Use funds for health treatments or long term care.
- Use funds for other investment or any other purpose
- Other life settlement benefits for seniors
In order to qualify for selling your life insurance policy:
- The policy holder must be at least 65 years old.
- The policy must have been in force for at least 2 years
- The policy holder must be a USA or Canadian Resident.
Life settlements allow seniors to benefit from their policies when they need it the most.
Here are some additional considerations
Why use a Life Settlement Broker?
- Usually cases are brought to market for purchase through a licensed
Life Settlement Broker vs. a Life Settlement Provider. This insures
that the policy owner will, usually, get multiply offers and maximize
their sale price.
- Some policy owners go direct to the buyers (Life Settlement Providers)
themselves. Working with a Life Settlement Provider directly only
gets a single purchase quote, not multiply offers.
- Providers are companies that manage the life settlement process
for the ultimate buyer. We work with approximately 36 providers who
represent about 100+ sources of capital. There are some cases where
we go direct to the end buyer.
- Providers want to buy the policy as cheap as possible, with as little competition as possible.
The value of a life insurance policy is determined by a number of
factors, including, but not limited to, the age and medical condition
of the insured, type of insurance policy, rating of the issuing insurance
company and amount of premium payments to keep the life insurance
policy in force.
What type of Life Insurance policies can be sold?
Most types of life insurance policies can qualify, however, the most
common are Universal Life, Whole Life, and convertible Term Life.
Why would I consider selling my life insurance policy?
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The policy is no longer needed or wanted
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To pay for healthcare costs
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Premium payments have become unaffordable
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Considering lapse or surrender of the policy
- Change in estate planning needs
Annuity Basics
In a Question and Answer Format
The following is intended to provide a broad overview of annuities and answer some basic questions.
- What is an annuity?
- What should I look for in an annuity provider?
- What are the different types of annuities, their advantages and disadvantages?
- What types of pay-out options are available from annuities?
- While this overview points out elements that many annuities have in common, there are hundreds of different annuity products available today, each with its own particular features, benefits and pay-out options. Within that very large group of annuity products, it is possible that particular annuities may behave differently than the descriptions given here.
If you are interested in annuities, we encourage you to learn as much as you can about a particular product and talk to a financial counselor you trust before making any purchase decision.
What Is An Annuity?
An annuity is an insurance product designed to provide income -- either
at some future date or immediately. With any annuity, the consumer makes
at least one payment (called a "premium") to an insurance company. The
insurance company, in turn, agrees to provide income payments to the
consumer in the future or right away. Because there are several different
varieties of annuities, it is easiest to break them into two broad groups
-- deferred annuities (those designed to pay in the future) and immediate
annuities (those designed to provide income immediately.)
What should one look for in an annuity provider?
When purchasing an annuity from an insurance company, you are placing
your money, your trust and part of your future financial well-being
with that company. Be sure that the company you choose has a long track
record of meeting its financial obligations and is financially strong.
By researching and comparing the financial condition and credit ratings
of several insurance companies you will be able to make an informed
decision.
- Check the insurance company's financial condition. Ask your financial counselor or your state's insurance department for this information.
- Research the credit ratings of the insurer versus those of other providers. The rating applies to the company that issues the annuity, not to any specific annuity product or to any underlying investments. The most widely-known credit rating agencies are Standard and Poor's, Moody's, Fitch, and A.M. Best.
For more information on either deferred
or immediate annuities.
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Deferred Annuities What is a deferred annuity? If you choose a fixed, deferred annuity, your money will accumulate at a fixed rate guaranteed* by the insurance company for a specified period of time. If you choose a variable, deferred annuity, your money will accumulate at a variable rate, based upon the performance of the underlying investments. The investment return and the value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. When you no longer wish to keep accumulating funds in your annuity, you may take the money out as a lump sum or annuitize it (convert it to income payments). If you annuitize, you have a choice of several standard pay-out options. Liquidations of earnings are subject to ordinary income tax and, if taken prior to age 59 1/2, a 10% federal income tax penalty may also apply. . .
. Fixed, Deferred Annuities. What is a fixed, deferred annuity?A fixed, deferred annuity is an insurance product that offers a fixed interest rate guaranteed* by an insurance company for a specified period of time (sometimes called a guarantee period ). With this form of retirement savings, the premium you pay to the insurance company accumulates on a tax-deferred basis and the insurance company usually guarantees* the return of your principal investment. . Example . What are the advantages of a fixed,
deferred annuity? Tax-deferred accumulation Guaranteed return of principal* Guaranteed interest rate* Choice of guarantee period with many fixed annuities Not subject to stock and bond market fluctuations No fees or charges with many fixed annuities. .
What are the disadvantages of a fixed,
deferred annuity? No flexibility. You may not change any applicable guarantee period or interest rate once you pay your premium. Not a liquid investment. Liquidation of earnings is subject to ordinary income tax and, if taken prior to age 59 1/2, a 10% federal income tax penalty may also apply. Early surrender charges may also apply. . For what type of investor is a fixed,
deferred annuity suitable? Seeking a fixed rate of return Wishing to diversify their overall retirement investment portfolio Who has already reached maximum contribution levels in a 401(k) plan and any IRAs they may have. Not wanting to worry about market fluctuations or having to actively manage their investments. . . May one make withdrawals from a fixed,
deferred annuity? Surrender charges On many annuities, the insurer may assess a surrender charge -- typically ranging from 7 percent to 1 percent of the withdrawal amount, based on a schedule where the amount of the surrender charge declines over time. There are some exceptions. Some annuities allow the annuitant to annually withdraw a certain amount (for example 10%) without a surrender charge. Market value adjustments Some fixed annuities contain a market value adjustment that applies when you take a full or partial distribution. With some types of fixed annuities, the market value adjustment may increase or decrease the value of your distribution, depending whether the interest rates currently being offered for your type of annuity have risen or fallen since your guarantee period began. If they've fallen, the adjustment may result in a higher payment. If they've risen, your payment may be lower. With some types of annuities, there is no market value adjustment if you surrender your annuity at the end of a guarantee period. Federal income tax penalties. Withdrawals before age 59 1/2 may be subject to a 10 percent Federal Income Tax penalty. Ask your financial consultant if any of these apply with the annuity you are considering.. .
Most annuities offer several standard
pay-out options - ranging from pay-outs for a specified period of time
(Period Certain), to pay-outs for life. Click for more pay-out options information.
Variable, Deferred Annuities What is a variable, deferred annuity? . Example . . What are the advantages of a variable,
deferred annuity? Tax-deferred accumulation Ability to choose among investment options Potential for more rapid accumulation than with a fixed annuity. . . What are the disadvantages of a variable,
deferred annuity? No guaranteed rate of return on variable investment options No guarantee of principal Not a liquid investment. Liquidation of earnings is subject to ordinary income tax and, if taken prior to age 59 1/2, a 10% federal income tax penalty may also apply. Early surrender charges may also apply. Subject to fees and charges from the annuity contract and from the underlying investments. . . For what type of investor is a variable,
deferred annuity suitable? Who does not require a fixed rate of return and with a tolerance for risk Who has already reached maximum contribution levels in his or her 401(k) plan and in any IRAs Who likes to manage their own investments . . May one make withdrawals from a variable,
deferred annuity? Surrender charges On many annuities, the insurer may assess a surrender charge -- typically
ranging from 7% to 1% of the withdrawal amount, based on a schedule
where the amount of the surrender charge declines over time. There are
some exceptions. Some annuities allow the annuitant to annually withdraw
a certain amount (for example 10%) without a surrender charge. Federal income tax penalties Withdrawals before age 59 1/2 may be subject to a 10 percent Federal
Income Tax penalty. . What pay-out options are available
when I get ready to receive income from my annuity? Click for more pay-out options information. . Immediate Annuities. What is an immediate annuity? .
. With a fixed, immediate annuity, your periodic pay-out amount will always stay the same. With a variable, immediate annuity, your periodic pay-out amount will fluctuate, based on the performance of the investment options you have chosen within the annuity.
Fixed, Immediate AnnuitiesA fixed, immediate annuity
is an insurance product that offers a fixed, periodic payment to you,
the annuitant, to begin shortly (usually about a month) after you pay
your premium to the insurance company. You choose the time frame over
which you will receive your pay-outs Either for a specified period (called a Period Certain ) Or for the rest of your life. . The most common usage of this type of annuity is to convert assets into a steady income during retirement. . Example . What are the advantages of a fixed,
immediate annuity? Guaranteed* periodic pay-outs**. Pay-outs begin immediately. Pay-out amount is not subject to market fluctuations. .
** Taxable Distributions (and certain deemed distributions) are subject to ordinary income tax. What are the disadvantages of a fixed,
immediate annuity? No choice of investment options. No flexibility. You may not change your pay-out option or your periodic pay-out amount once the pay-outs begin. Not a liquid investment. Withdrawals are not allowed unless the annuity has a commutation (cancellation) provision. . For what type of investor is a fixed,
immediate annuity suitable? Is seeking a fixed, periodic pay-out Does not want to worry about market fluctuations and have to manage their investments. . Can one make withdrawals from a fixed,
immediate annuity? What pay-out options are available
from a fixed, deferred annuity? Click for more pay-out options information.
. Variable, Immediate Annuity What is a variable, immediate annuity? Unlike a fixed, immediate annuity, you may make some changes to your variable, immediate annuity after the pay-outs begin. You may change your investment options as frequently as your particular annuity allows. You may not, however, change your pay-out option. . Example . What are the advantages of a variable,
immediate annuity? Ability to choose underlying investment options A stream of periodic income payments**. Potential for higher returns than a fixed annuity. .
What are the disadvantages of a variable,
immediate annuity? Pay-outs are not guaranteed - they are subject to market fluctuations No guaranteed return of principal No liquidity. The only way that withdrawals can be made from an immediate annuity is if there is a commutation provision written in your annuity. Subject to investment management fees and other charges. . For what type of investor is a variable,
immediate annuity suitable? Is willing to have his or her periodic pay-outs fluctuate Does not mind managing his or her investments. . Can one make withdrawals from a variable,
immediate annuity? What pay-out options are available
from a variable, immediate annuity? Click for more pay-out options information.
. Annuity Pay-Out Options. What are the pay-out options if I
choose to annuitize (convert my assets to income payments)? .
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** Taxable Distributions (and certain deemed distributions) are subject to ordinary income tax. . How the pay-out option choosen affects the monthly benefit. . This chart, for an immediate fixed annuity pay-out only, shows how a monthly annuity benefit amount is affected by the pay-out option chosen. .
. . Example: How Choice
Of Pay-out Option Affects Benefit Amount
.
The above information was
provided by
Guaranteed Acceptance Life InsuranceSome companies are now offering Guaranteed Acceptance Life Insurance to people whose age, health or pocketbook may prohibit them from being able to purchase life insurance. Unlike underwritten life insurance policies, you are not required to answer any health questions or take a physical. Usually these plans include a limited benefit period. If death occurs during the first few years, a reduced benefit is payable or the company will return the premiums paid plus interest. This allows the company to guarantee your acceptance. .
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Health InsuranceMedicareThose who have worked for a time in the United States, and their spouse, are generally eligible for Medicare. The age of eligibility is 65, unless there is a disability involved, in which case one may be younger to qualify. A person who is 65, a legal resident of the United States and has been so continuously for 5 years, may be eligible to buy into Medicare by buying into Part A and also Part B coverage of medicare. The buy-in amount varies and can be determined for you by workers in your local Social Security office. . Even if you are not going to file for Social Security at 65, FILE FOR MEDICARE at 65. If you delay filing, it may cost you more money to file later! . Medicare is divided into Part A and Part B coverage. Part A, provided free of patient premiums to those who have worked the necesary number of quarters, includes: In-patient hospital care for up to 90 days in a benefit period. A Benefit Period ends when you've been out of the hospital 60 consecutive days. There is no limit to how many benefit periods you can have. There are 60 reserve hospital days that can be used in any benefit period.
Inpatient care in a participating skilled nursing facility Home health care (distinguished from non-medical home help) Hospice care . .
Part B
is provided at a premium "which most people pay through an automatic
deduction from their social security check" and helps pay for:
. If you live in a rural area Medicare regulations enable some reimbursement of home care visits. Your closest Social Security Office can provide details regarding availability in your state. This is another segment of trying to provide better services overall for seniors in rural regions of the country. Earlier efforts to provide for rural patients was approval of limited telehealth services for "teleradiology" and "telepathology". . Some seniors qualify for Supplemental Security Income
Program (SSI) because of a "disability" or other exceptional circumstance
and "low income". Eligibility for maximum payments under SSI are reduced
by "countable" income and assets beyond home ownership. Some states
supplement the SSI payment from Medicare when a qualified recipient
lives in a care home. SSI recipients may also qualify for additional
help i.e. food stamps or medicaid.
Medicare and SSI information provided here is meant to be a primer, and a place to start. It is not meant to replace information available from Medicare. The Medicare Hotline is 1.800.633.4227. They can provide:
. . The Medicare Fraud Hotline is 1.800.447.8477. .
. Supplemental Insurance to MedicareMedical Insurance and medical coverage can be obtained from private providers to help pay for doctor and hospital care costs not covered by Medicare A and/or B through: .
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. Health Maintenance Organizations (HMO's).
. . Things to compare between HMO's:
. Links for More HMO Information
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. Medigap or Medicare Supplemental InsuranceLegislation standardizes this insurance into ten plans. They are referred to by letters A - J. All plans offer some coverage for what is not covered in part A of Medicare. Plans B - J, offer insurance covering for additional "services" medicare does not cover. i.e. J includes coverage for Part A costs, as well as many non-covered charges from part B. In comparing policies, remember that all insurance providers must provide categories A - J with similar features. So within each designated category, compare insurance coverage by:
Additional Information:
. MedicaidMedicaid is federally funded, and administered by states under their State Department of Insurance ( found in Resources by State). How "poor" you have to be to be eligible for Medicaid varies by state. Divesture of assets including spousal impoverishment (through asset transfers) in order to qualify for Medicaid may differ. How much a couple may have in "assets" is presently approximately $87,000, $2,000 for an unmarried nursing home resident. For a couple, the maximum monthly income is approximately $2,200, but again this differs by state. The asset limit and income for a married couple are adjusted annually by each state. If you want Medicare and Medicaid to work together to cover the cost of medical care, select providers (doctors, hospitals, etc.) that accept both Medicare and Medicaid. Check at http://www.hcfa.gov for your state information. Exemptions to your "assets" value may be:
. Generally regulations require residence in a long term care facility or skilled nursing home for Medicaid eligibility. But in some states a case by case investigation may allow some to be eligible when receiving medical care at home.
. Long Term Care Insurance. Medicare, HMO's and Medigap insurance do not pay for . Insurance can be purchased to help pay for these costs. Without it, a one year stay in a nursing home, estimated at $25,000-$42,000 per year, can wipe out a family nest egg. It can leave the well spouse without financial resources for their living expenses. When shopping for Long Term Care insurance compare:
. . Tax Qualified Long Term Care Insurance vs. Non-Tax-Qualified PoliciesUnderstanding the differences between tax-qualified and non-tax-qualified long term care insurance plans is important when considering the purchase of long term care insurance. As the names imply, tax-qualified plans provide the purchaser with certain tax advantages, including the assurance that benefits paid reimbursing them for qualified long term care service costs will be excluded from their taxable income, while non-tax-qualified plans do not provide the same assurance. Another advantage is that premiums paid for tax-qualified long term care insurance plans can be deducted as medical expenses by taxpayers who itemize (subject to Internal Revenue Code limits). And, proposed federal legislation for an above-the-line tax deduction for long term care insurance premiums would only apply to tax-qualified long term care insurance plans. There are also other differences that consumers may wish to consider. Tax-qualified long term care plans are designed to cover disabilities that are expected to last for a prolonged period of time, and the IRS has set specific eligibility standards for qualified benefits to be payable. The policyholder must either need substantial assistance with two of at least five activities of daily living (ADLs) for a period expected to last at least 90 days, or suffer from severe cognitive impairment. That need must be certified by a licensed health care practitioner. Long term care services must be in accordance with a Plan of Care prescribed by a licensed health care practitioner, and benefits can only be paid for qualified long term care services. Under non-tax-qualified policies, the insurance company may offer different benefit eligibility triggers, including allowing eligibility for benefits upon a finding of medical necessity. These less stringent triggers may provide access to benefits more quickly than under tax-qualified plans. Premiums are generally higher than for tax-qualified policies with equivalent benefit levels, benefits may be taxable as income, and premiums may not be deductible medical expenses. The above tax-qualified vs. non tax qualified long term care insurance policies was provided for your informational use by GE Capital's Long Term Care Division, 2000.
. Prescription Drug Assistance ProgramsPharmaceutical companies offer medication assistance programs to help uninsured and indigent patients obtain needed prescription drugs. Program eligibility criteria differs from company to drug company, but most all of them, as part of their philanthropic efforts, want "no patient in need to do without". Seniors who feel the financial pinch of filling doctor-prescribed medications should: .
Auto InsuranceHere are some tips to help the senior drivers that are increasingly staying in the driver's seat. Of course, like many life senior services, the correct auto insurance is a must. . Auto Insurance Discounts for Mature DriversAn accident is sometimes the first indication that an elderly person
should cease driving. It is hard for senior drivers to give up their
independence. Drivers over 75 have one of the highest rates of fatal
daytime accidents. Many times with Seniors, driving skills have impaired
over time. Automobile DesignWhile the auto design features are important to all drivers, there
may be special considerations for seniors. These include: movement freedom,
high roadway visibility, and any unique physical limits. Careful attention
to the following parameters can assure a better driving experience.
. Specific Physical ConditionsMany physical conditions and medications can have an adverse impact on driving.Seniors should be aware of the potential reactions to medicine that might make driving difficult. Your doctor is your best place to gain such insight. Several health elated conditions have been toed to automobile accidents and injuries. These include: vision problems, joint inflammation, neurological disorders, diabetes, foot problems and falling episodes. Driving courses for Seniors are offered by many states to get informed about potential problems and to renew safe driving techniques. Getting the Correct Auto InsuranceWant to save money? Here are nine suggestions to help you save on your auto insurance policies. It all starts with an auto insurance quote.
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