Page 4 - El Tejano October 2017

El Tejano Magazine
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Good Options For Funding Your Long-Term Care

(NAPSI)—Most Americans over the age of 65 will Of these recommended long-term care fi nancing
require long-term care at some point in their lives, options, a life settlement is the only one that does
with today’s average senior likely to incur $138,000 not involve seniors buying anything or spending any
in future long-term care costs, according to the U.S. money out of their own pockets.
Department of Health & Human Services. Th is is
diff erent from medical care and includes personal A life settlement is a proven strategy for generating
help with daily living activities such as bathing and cash from an unwanted or unaff ordable life insurance
dressing. policy. In a life settlement transaction, a senior sells
his or her life insurance policy to a third-party inves-
Th ese services are typically not covered by Medicare tor for an immediate cash payment. Th e investor then
or other traditional private health insurance. Un- takes over the premiums on the policy and collects
fortunately, the cost of long-term care insurance has the death benefi t when the insured passes away.
risen signifi cantly in the past
decade and the number of carri- Consumers who sell their
ers selling coverage has shrunk policies receive a lump sum
from roughly 100 to only a payment that is generally four or
dozen or so now. Th at leaves more times greater than if they
Medicaid as the primary insur- lapsed or surrendered their pol-
ance coverage source for long- icy, according to the NAIC, and
term care needs, but qualifying these funds can then be used to
for Medicaid requires the virtual pay for long-term care expenses
depletion of all personal assets. If you or someone you care about without depleting other retire-
ment assets. Th e NAIC report
needs long-term care, selling an
Faced with this dilemma, Amer- insurance policy can help you also notes that seniors “in imme-
ican seniors must get creative aff ord it. diate need of long-term care can
about how to pay for long-term sell their life insurance policies
care or risk a major hit to their retirement funds. and receive the proceeds of the sale free from federal
tax (Internal Revenue Code §101(g)).
Th e National Association of Insurance Commission-
ers (NAIC), the U.S. regulatory support organization “Some elder care providers and professional advisors
created by the chief insurance regulators from all 50 recommend that their clients consider using life set-
states, formed a Long-Term Care Innovations Sub- tlement proceeds to fund an account with a bank and
group to study this issue. Th e group recently issued a trust company to make monthly payments directly to
report that endorsed some viable options for private- a designated long-term care provider,” says the NAIC
ly funding long-term care costs. Four specifi c options report. “Upon death, in addition to a modest reserve
they laid out included the following: to defray fi nal expenses, any remaining balance in the
account is paid to a designated benefi ciary.”
• Single Premium Permanent Life Insurance Policies
• Annuity Long-Term Care Hybrid Policies For more information or to fi nd a life settlement
• Impaired-Risk Payout Annuities professional who can help you look into this option
• Life Settlements. and see if it makes sense for you, call (800) 664-9024
or visit the LISA website at www.lisa.org.

Praying For Las Vegas

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