Seniors have many challenges to overcome. They have financial challenges and medical difficulties and these challenges are compounded when faced at the same time. Unfortunately, financial and medical problems generally go hand in hand. This article will discuss how you can overcome these difficulties and enjoy your golden years unfettered.
The Harsh Reality of Seniors Struggling With Medical Expenses
Not everyone retires on a 50-foot yacht on the shores of Florida or Costa Rica, and even if they do, the value of said yacht can quickly be devoured by unexpected mechanical expenses. Like engines, things start to require maintenance and repair over time. Of course, maintenance tends to be more expensive than just maintaining or repairing an engine. Unfortunately, high medical costs are a fact of life for most seniors, and many have never had the opportunity to save enough money before retirement.
For some, it was because they chose to spend more time and money in their youth with their friends instead of working regularly and putting money into a retirement fund. Many others could not save the money because they were already taking care of a loved one or an ill parent for many years.
Others poured all of their savings into the stock market only to have it all burn up during one financial crisis or another. In any case, if you are a senior facing steep medical expenses and you don’t know how to pay for them, you are not alone.
What NOT to do When You Have Extremely High Medical Payments
When you’re dealing with incredibly high healthcare costs, and you don’t have the money on hand to pay them off, many seniors go into a panic. You mustn’t do this….and do not panic, even if you’re staring a $100,000 hospital bill in the face; there is a way out.
Another common mistake seniors make when pressured by medical bills is to sell off family heirlooms. Others choose to sell their family home just to keep up with their medical expenses. Imagine having to make the heart-wrenching decision to sell the house that your children grew up in just to pay for medical services.
Seniors faced with the choice of raising money or passing away before their time will do some very desperate things to get their hands on funds. Some will even take out medical loans to cover the costs. Taking out a medical loan is one of the worst options of all; here’s why.
The Disadvantages of Medical Loans.
Medical loans are categorized as personal loans, making them very dangerous. Since they are considered personal loans, many seniors fall into the trap of taking money from shady short-term lenders. For example, say you need a $3,200 cataract surgery and don’t have the cash on hand to pay for it. What you do have is a vehicle that’s worth around $3,000. So you put your car up as collateral to take out a title loan from a short-term lender to pay for your surgery.
A short-term lender will be happy to take the title for your vehicle as collateral; however, they will also be glad to charge you an interest rate so high you’ll never be able to pay the loan off, which means you’ll lose your car.
Most medical loans also have exceptionally high-interest rates, which means they typically come with steep payments that can be hard to keep up with. You should know that medical loans don’t actually reduce the amount you have to pay for medical expenses. By taking out a medical loan, you end up paying more than the cost of the services themselves. That’s because all of that interest on your loan adds up, meaning you’ll be paying thousands of dollars more in the long run.
Another serious disadvantage of medical loans is that they have a negative impact on your credit rating. Once you apply for and take out a medical loan, your credit score will take a beating.
Why Selling Your Life Insurance Policy is a Preferable Alternative to Medical Loans for Seniors
If medical loans are so bad, what other options do you have to pay for medical services? One of the best options you may have is to sell your life insurance policy for a lump sum cash payout in a life settlement transaction. You not only do you receive cash, but you also eliminate your premiums and can spend the money as you wish.
As long as you are 65 or older and you’ve been paying your premiums, you can sell your life insurance policy. For those of you with an older loved one struggling to keep up with medical costs, discuss with them the advantages of selling their life insurance policy.
For example, if your parent or grandparent is ailing from painful or life-threatening and they don’t have the money to pay for medical care, a life settlement may be right for them.
When you sell your life insurance policy, you won’t be putting yourself in any debt. When you take out a personal medical loan, you will most likely be paying a high-interest rate, owe a lot of money, and your credit score will be negatively impacted.
Give MRE Finance a Call
Selling a life insurance policy with the help of an established company that employs a team of experts is easy! MRE finance specializes in helping seniors sell their life insurance policies for cash. Want to find out what your life policy could be worth? Try our Free Life Settlement Calculator to get an estimated value of your policy in minutes.
If you prefer to speak with someone, give us a call at 1-800-521-0770.