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.

Selling your unwanted or unneeded life insurance for 20-30% of the face value or 5-10x the cash surrender value sounds great and simple enough, but what should be considered in determining if you actually need your life insurance?

Every situation is different, and selling your life insurance in a life settlement is not a small financial decision, so working with an advisor is recommended. There are, however, some common considerations:

Do you still need some sort of life insurance protection? In general, your are insurable up to your net worth. So if you have a $500k policy and a net worth of $1m, you are eligible for only another $500k in coverage.

Receiving a large cash settlement may interfere with public assistance benefits such as food stamps or Medicaid.

If you are comfortable with the above, selling your policy may be a financially sound move for you and your loved ones.