There are ads on television today that are simply terrifying for seniors, informing people that the new health care reform act will virtually eliminate care for seniors or that it will severely limit end of life care. An important thing for all seniors to realize, however, is that this is not the case. The health care reform act will work to make Medicare more efficient, but the aim will be reached by lowering costs and increasing reimbursement to seniors for their policy premiums. Additionally, any insurance plan that you have and are content with will be able to remain in effect. The new act works only to help those without insurance or who are seeking a more affordable insurance policy.
While the scare tactics seem to be working, they are also creating a sense of panic in a group of people with no reason for panic. It is very important to realize that the act does not impose any sort of waiting or weeding out process for needed health or end of life care. While there is some talk of rationing, or determining what procedures are needed and which ones are elective, this is a policy that all insurance companies have used for years and will not be targeted at seniors.
When the health care reform act is enacted, most seniors will notice little change outside of lower or reimbursed premiums. The truth is that you will still receive quality and timely health care and that all needed procedures that were covered before will still be covered. The reform act is not about taking privileges away from anyone, and is designed to help those without insurance and those with too little insurance. Medicare and the new health care program are as committed as ever to prolonging life and to caring for all citizens, and the new bill will do nothing to change this.

This bill would give retirement plan owners 70 1/2 or older more time to take distributions, eliminating the minimum requirement for retirees to sell assets while the market is down.

The affect on the life settlement market is interested and eligible seniors will likely receive higher offers as less seniors turn to settlements as a source of cash.  We make adjustments to our life settlement calculator as necessary to reflect this changing market.

Expect updates to this development in the next couple of weeks.

I thought a quote by Doug Head, LISA’s Executive Director, summed up the current environment very well:

“In 2009 LISA will focus attention on life insurers’ anti-consumer market conduct that impairs policyowners’ access to life settlements and other secondary market transactions.”

Life Insurance companies would rather senior policyholders surrender policies or let them lapse than have the policyholder sell their policy for fair market value.  As a result, many life insurance agents do not recommend life settlements so as not to disrupt the source of their primary business – selling the life insurance in the first place.

If you or someone you love owns or is paying premiums on unwanted or unneeded life insurance, have them discuss the option of a life settlement with their financial advisor and visit our calculator for a free and instant life settlement quote.

We certainly hope LISA’s predictions are correct and that the government will take a more active role in eliminating confusion and representing the consumers’ best interests.

Under the law, any money you donate to charity from your IRA will count toward the annual withdrawals you’re required to take from these accounts after reaching age 70½.

If you itemize your deductions, you’ll also come out ahead. That’s because taxpayers whose adjusted gross incomes exceed certain thresholds lose some of their deductions and personal exemption amounts. By not adding $1,000 to your income, this gift might help you keep your income below these levels.

Those in a position to take advantage of the IRA Charitable rollover include those:

· who are already giving at their deduction limit

· whose income level causes the phase-out of their exemptions or itemized deductions

· for whom additional income will cause more of their Social Security income to be taxed

· who wish to remove up to $100,000 from their taxable estate

Take advantage of giving opportunities like the above or through donating the proceeds of a life insurance settlement.