Daughter is able to keep her father home, despite a tough economy, by converting his term life policy. A daughter was caring for her father but the turn in the economy had hurt his investments and her own family’s finances. As his condition worsened they were unable to keep up with the costs. He owned a $250,000 term life policy that they decided was going to be too expensive to keep any longer. Just as they decided to stop making premium payments they found Life…
Posts tagged "Insurance Conversion"
Convert A Life Insurance Policy Into Assisted Living Payments
Daughter is a lawyer and helps her parents convert policy to pay for assisted living. Mom and Dad wanted to move closer to their daughter and to enter an Assisted Living facility due to health concerns. Their daughter conducted some research and found Life Care Funding while searching for assisted living facilities. Her parents sold their home to prepare for the move and applied convert to their $150,000 life insurance policy. Their daughter is a lawyer and worked closely with Life Care Funding to assist…
Using a Long Term Care Benefit Plan for Urgent Assisted Living Needs
A Long Term Care Insurance Agent recommends a Long Term Care Benefit Plan Conversion instead of a Long Term Care Insurance Policy. A long term care insurance agent was working with a client that needed to address an immediate need to move into an assisted living community. They were turned down by every long term care insurance company where they applied for coverage, but his client owned a $100,000 universal life policy. After considering their options they decided the best course of action to afford…
Policy Conversion Report Released by Florida Medicaid Department
The report and accompanying legislation includes the “Private Option” to convert a policy into a Long Term Care Benefit Plan modeled after Life Care Funding (see page 6 of the Medicaid Department Report). A powerful coalition of interests have come together to support the use of life insurance as a tool to pay for the costs of long term care. The Florida Health Care Association, the Florida Chamber of Commerce, AARP, the Florida Assisted Living Federation, the life insurance industry (carriers and agents), and the…
Life Insurance Policies Abandoned by Seniors
The Long Term Care Benefit conversion option is designed to serve a large but ignored population. This large population of middle market life insurance policy owners with polices under $500,000 of death benefit value end up either lapsing or surrendering their in-force life insurance because they can no longer afford to pay the premiums and/or they are on a Medicaid spend down path. Owners of small face policies with an immediate need for long term care are not ideal candidates to purchase a long term…
Other Options as Long Term Care Insurers Abandon the Marketplace
ProducersWeb.com By Chris Orestis Life Care Funding Group Less than 20 years ago, there were dozens of major insurance companies selling long-term care insurance (LTCI). Today, there are under 30. The paradox is, why, just as baby boomers started turning 65 at a pace of 10,000 per day, is the LTCI market shrinking instead of booming? The list of companies that have abandoned the LTCI market is a who’s-who of insurance industry giants: MetLife, Prudential, AIG (American General), Guardian, UNUM, Allianz and CNA, to name…
Converting Life Insurance into Long Term Care Plan Protects Consumers
Consumer Rights Middle class policy owners and their families are caught in the ironically unfortunate position of not being poor enough to automatically qualify for Medicaid, but they are not wealthy enough to access the care they need with enough out-of-pocket funds. In America, the vast middle class market is financially punished for being caught “in the middle” when they reach the point that a loved one requires long term care. When a family has a life insurance asset to work with, the ultimate decision…
Assurance Benefit Policy Conversion as a Consumer Protection
Far too many life insurance policies owned by seniors will never pay a death benefit because they are allowed to either expire, lapse or are surrendered for cash value. The shame of this situation for the consumer is that there are numerous options for them to explore before abandoning a policy. Life insurance is legally recognized as personal property, and the owner has the right to use their asset in a number of ways including converting the policy to a long term care Assurance Benefit…
The Medicaid Problem Grows and a Solution Emerges
When Medicaid was created on July 30th, 1965, the entire GDP of the United States was $791.1 billion, and no one could have predicted that by 2009 the U.S. would spend over $2 trillion on health care in a single year. Today, Social Security, Medicare and Medicaid are all in the red and creating havoc for government budgets at the federal and state levels. According to Chairman Ben Bernanke, this has become the number one concern of the Federal Reserve about the U.S. economy. State…
Three States Pass Life Insurance Policy Conversion Study Bills
FL, CT, and HI look to long term care benefit plans to offset Medicaid costs Joining Connecticut and Florida, Hawaii is the latest state to pass a study bill establishing a task force and time frame to examine the conversion of life insurance policies into Long Term Care Benefit Plans. With states facing enormous fiscal pressures and ballooning Medicaid budgets, they are all looking for private market solutions to help extend peoples’ ability to remain private pay in long term care for as long as…