A new study may provide further incentive for insurance agents to help their health insurance leads find affordable coverage plans, particularly those who are in their retirement years.
According to the Employee Benefit Research Institute, health costs are the second-largest expense for older Americans, as many individuals are using up what they earned for retirement to pay for these costs. Overall, however, spending among older Americans is primarily taken up by home-related costs.
Sudipto Banerjee, research associate with EBRI and author of the report, noted how these two expenses can weigh heavily on retired individuals, especially healthcare costs.
"Health care spending is the only component which steadily increases with age," said Banerjee. "It captures around 10 percent of the budget for those between 50-64, but increases to about 20 percent for those age 85 and over."
Other findings from the report indicate retired households tend to spend 80 percent of what working households spend but earn approximately half of what working families make.
Based on the study's results, agents may want to point their insurance customers toward an annuity plan, as this can serve as an additional source of income.