Annuities
An annuity is a previously decided upon sum of money that the beneficiary receives every month. Some annuities last for the remainder of their lifetime. Annuities exist to take off some of the financial strain that can be a result of aging. Nursing care, hospital bills, and unforeseen medical costs can all come with getting older, so there are insurance options that exist to help offset some of those costs. Purchasing an annuity is one of the best choices you can make for the future. Similar to an investment, purchasing an annuity can greatly increase your financial prospects in the future and guarantee you have access to monetary resources when you need them.
Annuities act like an investment. Beneficiaries can put money aside when they have a constant stream of income so that when they’re retired they have money set aside already. This is an excellent option for most that can provide peace of mind and financial security.
Annuities are between an insurance provider and a beneficiary that gives the insurance provider a sum of money. This is a contract that states the beneficiary will receive that money back at a certain point. This ensures that the beneficiary is cared for and they’ll have income even once they’re finished at their job. Putting money aside while you have regular income is one of the best ways to save for the future and make sure you’re planning accordingly.
Planning for the future
Planning for the future is essential and making sure both you and your spouse are provided for is one of the most important components of that. Purchasing insurance can help make this a reality.
Many look toward the future and wonder about their health situation and which insurance option will be right for them. Medicare is government-provided insurance intended primarily for seniors. Its purpose is to cover medical costs and it provides great financial relief for many people. If you’re concerned about health insurance once you’ve retired, consider Medicare as a viable and affordable option.
Why purchase an annuity?
Purchasing an annuity is an investment in your future. It means that you’ll have access to money that’s set aside once you don’t have an income. Retirement doesn’t have to be financially daunting if you enroll in an annuity that will cover some of those costs. Making provisions for the future can help you feel more peace in the present. Being able to make decisions that will benefit your future self is one of the best parts of insurance and the reason why so many people choose annuities.
Many are thinking about their spouse when purchasing an annuity. It’s an excellent way to ensure that they’ll be provided for in the event that something medically unexpected occurs to either you or them.
If you’re not sure whether or not an annuity is right for you, let us know. You can make an appointment to speak with one of our professionals and discuss your choices. Learning more about annuities can help you decide not only if they’re the right choice, but what financial decisions you’d like to make for the future.
We understand that insurance decisions are hard. Many options are asking you to think about challenging situations, so our company is dedicated to ensuring that each of our employees is compassionate and understanding. At Medicare Peace Of Mind, we prioritize all of our clients and dedicate our time to making sure their insurance needs are being met.
Medicaid-compliant annuities
If you’re looking to provide for medical costs that may not be covered by insurance, consider a Medicaid-compliant annuity. This type of annuity is immediate, meaning there is no waiting period before payments begin. This is extremely beneficial if you’re purchasing your annuity close to or during retirement. Many people concerned about financially taking care of their spouse choose to purchase this type of annuity, as it ensures they’ll have access to needed money in the future.
Medicaid-compliant annuities require that the beneficiary pay a lump sum. This is then distributed over the rest of the beneficiary’s lifetime. It often goes toward medical bills and can provide substantial financial relief for those that don’t have another source of regular income.
Enrolling in Medicaid is different from Medicare. Medicare enrollment typically is based on age, while Medicaid is based on financial situation. Some people in retirement don’t have regular income but still find themselves ineligible for Medicaid. While someone may be saving those funds to pay for food or housing, it still disqualifies them for Medicaid. Some people resort to spending a large portion of their funds just so that they can qualify for Medicaid services. Annuities provide an alternative to this.
When money is put into an annuity, it’s no longer considered to be recognized by Medicaid. This means that you can put enough money into your annuity that you become eligible for Medicaid. This can be hugely beneficial and give you enough money to both support yourself and gain access to necessary medical treatment. This is one of the best financial strategies available for those in retirement. Gaining access to Medicaid while still having funds disbursed to you every month provides both income and health insurance. Combined with Social Security payments, an annuity can provide a livable amount of money.
Medicaid-compliant annuities do not always extend to the end-of-life. Their extension is typically decided upon based on the amount that’s placed into the policy. If someone puts a certain amount of money in, that will be divided up into a certain amount of months. This system ensures that everyone “wins” and the beneficiary receives the agreed-upon amount.
