MEDICARE AND PRCUA

There are many uses for PRCUA’s life insurance when planning for your financial future. Here is one more use for PRCUA life insurance that you may not be aware of.

Just about everyone who turns age 65 enrolls in Medicare as offered by the federal government. There is a cost to you for the part B coverage in excess of $46 per month. Plus most people purchase a Medicare supplement insurance policy to pay for the deductions and amounts not covered by the federal Medicare program. This type of insurance costs around $80 per month.

Over the years, these premiums can amount to thousands and thousands of dollars paid, usually on a fixed income. Here’s an idea to help defray these costs once you are retired.

The cash value and accumulated dividends within your policy can be used to purchase a monthly income, which you can never outlive. This monthly income can be used to pay for your Medicare supplement insurance premiums or for any other fixed cost of retirement living.

As an example, a male age 35 purchases a $100,000 President’s Whole Life plan. He pays $1128 per year for 11 years. At age 65 his cash value and accumulated dividends total $44,623. Under our current settlement option, he would receive a monthly income of $375 guaranteed to be paid for at least 10 years and thereafter until he dies. If he lives to age 85 his $375 monthly income would have totaled $90,000. This extra income would easily pay for his Medicare supplement insurance premiums and other necessities of life.

If you have cash value and accumulated dividends totaling $15,000 at age 65, the monthly income you receive would be around $130 which is more than enough to pay for your Medicare insurance premiums each and every month for the rest of your life. Where else can you consistently earn and receive an equivalent rate of 10%?

Life insurance has many uses and during our working years we buy it for protection from an untimely death. The build up of cash values and dividends in our policy at age 65 can provide us an income which is needed and which can never be outlived. Think about it. Protection during our working years and then this same plan provides an income we can never outlive during our retirement years. An extra income to pay for our Medicare premiums, etc. Contact your favorite agent or our office for more information.