How Do Social Security Laws Affect Life Insurance?

With a few changes to the Social Security Act, people on Medicare now have a better way to pay for prescription drugs and lower the cost of insurance.

According to a recent New Jersey Today article, programs such as the Medicare Prescription Drug Plan and Social Security make a significant difference in the cost of prescription medication.

The revised Medicare Prescription Drug Plan and other Federal programs that went into effect this year will allow eligible seniors to save $3,900 per year to help pay for monthly premiums, annual deductibles, and prescription co-payments.

The Social Security Law was revised twice in January. For starters, life insurance is no longer regarded as a financial resource. Previously, life insurance was classified alongside banks, bonds, and stocks. Furthermore, any financial assistance given to the member to pay for household expenses is no longer considered income.

According to the article, in order to be eligible for additional financial assistance, Medicare members must meet a number of requirements. To be eligible for the program, a single person must have an annual income of less than $16,245 and resources that do not exceed $12,510.

Married couples must earn less than $21,855 per year and have combined resources of less than $25,010. If other family members are supported in the household, additional assistance may be provided and the income requirements may be waived.

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