According to U.S. News, “nearly 11% of Medicare beneficiaries said they struggle to pay their medical bills and have delayed care because they can’t afford it, according to researchers who analyzed data from a regular federal survey of current Medicare beneficiaries.” The general consensus deems it to be not as “universally accessible or equitable” as it should be, leaving many to struggle financially.
Statistics show that lower-income seniors are also struggling under Medicare—about 8% of beneficiaries 65 and older have delayed care and 7% have trouble paying off medical bills. Chronic health conditions add to the lack of affordability of Medicare. The findings showed that seniors with 4 to 10 chronic conditions were more than twice as likely to have problems paying medical bills as those with one condition or none at all.
Traditional Medicare has fairly high-cost sharing requirements for beneficiaries; for example, a doctor’s visit under Medicare Part B requires a 20% copay. A senior with multiple illnesses who goes to various specialists can rack up high amounts of medical copays. It is important to note that there is no cap on out-of-pocket expenses for traditional Medicare, so essentially, the money that can be spent is endless.
With this being said, seniors often look for alternative avenues that provides them funding for these medical costs. A safe and reliable option that would provide an immediate lump-sum of cash is the life settlement option. In terms of definition, a life settlement is the financial transaction of an existing life insurance policy to a licensed life settlements buyer for more than its cash surrender value, but less than its death benefit. The policy owner transfers ownership and beneficiary rights to an institutional fund, like Abacus Life. The insured receives a lump-sum cash payment that can often be 4 to 6 times greater than the cash surrender value in exchange for transferring ownership.
One of the many pros to life settlements is the idea that seniors have total control in how they spend their settlement payout—it is entirely up to their discretion. A common use for the payout is to cover medical bills, assisted living costs, accumulated debt, or simply to stop having to pay rising premiums every month—however, one can spend it however they wish. For older adults who are struggling to pay for health care costs or long-term care in retirement, a settlement can provide a much-needed lifeline in this time of financial need.
Abacus Life has been providing seniors this life-changing financial option for over 17 years. We would be happy to walk you through the process and help you see if you qualify. Reach out to our team at 800-561-4148 and try our Abacus Life Settlement Calculator to get an instant policy calculation today; let us help you achieve financial freedom!