Coventry Endorses New Senior Health Planning Account Act

Coventry commends bi-partisan legislation to benefit America's seniors.

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Mar 09, 2020, 13:34 ET

FORT WASHINGTON, Pa., March 9, 2020 /PRNewswire/ -- Coventry, the largest life settlement company and pioneer of the secondary market for life insurance, today endorsed H.R. 5958: Senior Health Planning Account Act.

The proposed bi-partisan legislation, introduced by Rep. Brian Higgins (D-NY), and Rep. Gregory Steube (R-FL), would help millions of American seniors fund future health care needs, including long-term care, by permitting the use of tax-free Health Planning Accounts funded by the proceeds from the sale of their unneeded life insurance policies.

Senior Health Planning Accounts would allow seniors to access the same type of tax-advantaged savings accounts that millions of younger adults already enjoy in the form of Health Savings Accounts.

"This important legislation is vital to the continued financial well-being of America's seniors," said Reid Buerger, CEO of Coventry. "It would put billions of dollars back into the pockets of seniors and give them the flexibility to plan for their future health care needs."

According to Fidelity Investments, a 65-year-old couple in good health retiring in 2019 can expect to spend $285,000 in today's after-tax dollars on health care and medical expenses throughout retirement.

Life insurance is a valuable asset, but according to the American Council of Life Insurers, only about 10% of life insurance policies ever result in a claim. In 2018 alone, 7.7 million policies with a combined face value of $570 billion were lapsed.

The National Association of Insurance Commissioners found that "policyowners who sell their policies receive a lump sum payment that is generally four or more times greater than if they lapsed or surrendered their policy." The NAIC further stated that life settlements are "one option seniors might use to generate resources to pay for their long-term care needs."

"Life settlements provide an innovative way for seniors to overcome the challenges of ever-increasing health care costs," said Buerger. "The Senior Health Planning Account Act would contribute to Coventry's longstanding mission of making life insurance more powerful, more flexible, and more valuable."

About Coventry
For over 35 years, Coventry has been redefining insurance. By uniquely bridging insurance and capital markets, Coventry created the secondary market for life insurance and pioneered the resulting life settlement industry. Coventry has structured or funded over $40 billion of life insurance transactions, opening a wealth of opportunities for consumers, financial professionals and institutional investors alike.

Today, Coventry continues to drive the industry forward. Coventry's deep experience combined with a fierce commitment to consumer rights makes Coventry the clear market leader, a position we use to continually raise industry standards and expand consumer choice. To learn more about Coventry, please visit www.coventry.com.

SOURCE Coventry