The Affordable Care Act could present a new opportunity for life insurance sales, according to one of the workshop presenters at the NAIFA Conference.
The ACA has the greatest impact on senior citizens who are on Medicare and on business owners, according to Rick Liuag. He has a retirement advisory practice and is the author of “You’re Gonna Need A Bigger Boat: How Obamacare Threatens Your Retirement Savings.”
Seniors are being hit with shrinking networks of doctors who are willing to accept Medicare patients, Liuag said. As a result of increased health care costs, the ACA is the greatest threat to seniors’ retirement nest eggs, he contended.
As for business owners, the ACA is increasing their taxes. “If your client sells their business post-ACA, they will pay an estimated $88,000 more per million in taxes,” Liuag said.
For seniors who have the funds to execute such a plan, Liuag recommended indexed universal life with accelerated living benefits as well as fixed indexed annuities with rider doublers to help offset rising health care costs.
Business owners with fewer than 50 employees could benefit from a strategy that would save them $300 to $500 per employee per month. Liuag outlined the plan, which he said would save the business owner $200 per employee per year in payroll taxes, while leaving some funds in a “benefit bank” for the workers.