Seniors and Life Insurance

Posted by:  :  Category: Medicare

Permanent or whole life insurance policies pay a death benefit whenever you die, if the policy remains in force. You also generally pay a monthly (or annual) premium for permanent life insurance, but some plans may allow you to stop paying premiums after a certain number of years. The premiums for permanent life insurance policies are usually higher than for term policies because part of your premium is used by the insurance company to make investments to build cash value. Value is built up each year that you keep the policy and is typically tax-deferred. This means that you can usually borrow against the cash accumulation without being taxed, although you may need to pay interest. Returns are not guaranteed with a permanent life insurance, and term policies may be more appropriate for some life situations, so you should weigh your life insurance options carefully to find one that works best for you.
Source: planprescriber.com

What’s Medicare Supplement Insurance (Medigap)?

Some Medigap policies also offer coverage for services that Original Medicare doesn’t cover, like medical care when you travel outside the U.S. If you have Original Medicare and you buy a Medigap policy, Medicare will pay its share of the Medicare-approved amount for covered health care costs. Then your Medigap policy pays its share.
Source: medicare.gov

Medicare Supplement Life Insurance

Whole life insurance provides coverage to a person for his or her entire life rather than an assigned period of time. This insurance is one means of accumulating wealth as there is a saving component in the insurance known as loan or cash value, which builds over a period of time. It is one of the basic type of insurance coverage. The applicant has considerable liberty in deciding the terms and features of the policy. The premium paid by the person is divided into two components; one provides the insurance whereas the other accrues in the savings account. The policy carries a fixed benefit that is given on the death of the person along with the amount that has added up in the savings account.
Source: bestmedicaresupplement.com

Life Insurance and Medicaid Eligibility

In order to qualify for Medicaid coverage a nursing home stay, an elder’s assets cannot exceed $2,000 for a single person, or $109,560 for married couples. However, not all assets are “countable” for these purposes. The biggest exemptions are the person’s home, car, and personal property. Another exemption is life insurance owned by the elder. The rule states that only the “cash surrender value” of a life insurance policy is countable, but only if the total face value of all life insurance policies exceeds $1,500. (“Cash surrender value” is the amount the life insurance company will pay out if the policy were cancelled. It’s also known as the “cash value.” The “face value” is what the company would pay out to beneficiaries if the elder died, assuming the policy was still in effect.)
Source: agingcare.com

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