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As one has increased health care expenditures is almost certain. That's why health insurance costs rise as we age. Currently, Medicare promises to pay 80% of hospitalization costs, and the current $ 1,200 per year, you can buy B of Medicare, which covers 80% of our external costs. Then there is the long-term care, and what if you change Medicare plan, due to the expected increase in freight costs? Many of us can secure for himself some years out of our savings, if the impact of health not too catastrophic. But what happens when you are 80 or 90 or 100 years. How can we afford health insurance and which provider can make a profit if is almost certain to pay under policies issued to 90 years of age within the next few years.
At the age of 61 it's time for me to look at living expenses in the future, but the wild card is health care and long-term care. Like most people who really do not want to feel that I have to save everything for the future no mater how old I am. But with health costs, a stranger, could never seem to be too safe. Do I really want to die or survive opportunity to live in poverty, because I spent my money on dinners and vacations in retirement, instead of saving to the end? What about the heirs, I spend all?
Health Annuities could be my answer but no one seems to offer. This is the idea. Buy a tax-deductible purchase of Healthcare that is activated sometime in the distant future. If I am lucky enough to live a long time after the annuity would be the star that covers expenses related to my health, if they materialize. I could buy an annuity of health when I need something to cancel taxes. (Say the sale of my business or second home). With the purchase of deductible health that could allow the government pays for some of my medical expenses, avoiding taxes on some of my benefits.
A victory, a win-win situation for the seller and the consumer can be established with some volume and sound actuarial planning. Let's say at 60 years, 100 people bought for $ 20,000 a health care complete after 85 years. Currently, a man who does not smoke in good health is supposed to die at age 85. So the seller will receive $ 2,000,000 today and can never pay anything. Those who buy health annuity would cancel the capital gains at 17% of $ 340,000 in tax savings in a tax level 24% saved would be $ 480,000.
We know that there will be about 200,000 people 100 years old in the U.S. 25 years form now. That means that fewer than 7 in 10,000 require care from 85 to 100. That's 15 years of attention to say $ 100,000 per year, or $ 1,500,000. Now you can begin to see that our group of 100 people only have a small chance of them living to 100. A 90 lets say there are 10 or 10% chance of living. That means 100,000 costs in dollars per year 3 years to 10 or $ 9,000,000 would be required.
So what could keep the vendor? What does the seller have to work? The supplier will have the original $ 2,000,000 plus interest of $ 2,000,000 for 25 years. With the rule of 72 to 10% of revenue is another $ 24,000,000. As you can see the provider may pay a large amount of medical expenses and still make a big profit. The client will not have to worry about of health insurance too expensive for him at the age of 80 or 90, etc. The customer can also afford to spend their wealth with the unbounded wildcard medical costs ahead.
For this proposal to the work of government should ensure that the seller is that 20 to 30 years in the future to take care of their obligations. This FDIC: a backup style to build confidence in the vendors of such income. They should not be enough buyers willing to create the pool of money to work. And actuaries should pencils sharpened to factor the effects of medical technology on life expectancy, hospitalization, medications, procedures medical implants, government programs, etc.
But this modest proposal could be a way for those of us over 60 years to fund our future in a way that eliminates the uncertainties that actuaries may even have a hard time predicting. Lets find a way to carry our own weight, live within of our ability, and secure our own future today.
Harvey Chichester http: \ \ www.concrete floor-coatings.com
About the Author:
Durall Industial Flooring, has over 40 years of flow coated flooring experience. With over 500 specialty chemical products Durall Industial Flooring, provides 24/7 service hand help. Free cost analysis for each flooring project is available at www.concrete-floor-coatings.com
Article Source: ArticlesBase.com – Saving the Healthcare System With Health Annuities
