Life Settlements, Viaticals and Long Term Care Benefit Plans

Many seniors over the age of 65 will eventually require some type of long term care. The need for long term care is usually due to a severe or chronic illness that requires both medical treatment and help with daily living. Paying for long term care can become a significant financial burden for an elder and his or her family – from $40,000 up to $100,000 a year depending on the type of care that is needed.

One way long term care can be financed is by converting a life insurance policy into a life settlement, viatical settlement or Long Term Care Benefit Plan.

Using Life Insurance to Pay for Long Term Care

Most insurance companies will buy back a policy if the policyholder decides it is no longer needed or can no longer afford the premiums. However, the amount of money the insurance company will pay (cash surrender value) is only a small percentage of the policy’s actual worth.

Another option is selling the life insurance policy to a third party. This is often the best way to recover the most amount of money from the policy and any premiums that have been paid to date.

Selling a Life Insurance Policy to a Third Party

When a life insurance policy is sold to a third party, it is called a life settlement. Until recently, life settlements were primarily for high net worth individuals with a death benefit above $1 million. In addition to age restrictions, only certain types of policies were accepted.
The paperwork needed for a life settlement includes 5 years of medical records and can take as long as 6 months to complete. Life settlement lump sum payments average around 15% of the death benefit. The money received in a life settlement is also taxable.

During the peak of the AIDs crisis in the 1980s, a new type of life settlement, called viatical settlements, become popular. At the time, viatical settlements were primarily for individuals with a terminal illness and life expectancy of 2 years or less. Today you will find some life settlement companies offering viaticals to individuals with chronic health conditions or a terminal illness with a life expectancy of up to five years. Although the federal government does not tax the money, some states may still require tax payments.

Converting a Policy to a Long Term Care Benefit Plan

The best way to pay for long term care is with a third type of life settlement, called a Long Term Care Benefit Plan. Not only is the settlement tax-free, there are no age minimums or health restrictions.

Several different types of polices can be converted to a Long Term Care Benefit Plan, including Term Life, Whole Life, Universal Life and Group. Policies can have a face value as low as $50,000. The average payout for a Long Term Care Benefit Plan is 4 to 5 times greater than any other type of life settlement – usually around 30% to 60% of the policy’s face value. The settlement process can also be completed in as little as 30 days with a minimal amount of paperwork. Money from the settlement is deposited into an irrevocable Benefit Account which is professionally managed. Medical and personal care expenses are paid from this account.

If you or a family member need long term care, including home care, assisted living, nursing home care or hospice care, converting an-force life insurance policy to a Long Term Care Benefit Plan can reduce financial worries and ensure the highest quality of care possible.

Elder Care Funding helps individuals and families find solutions to long term care financing. Complete the form below to find out if you are eligible for a Long Term Care Benefit Plan, or give us a call at 844-814-6511.

Financing Dementia Care

Dementia refers to several different types of brain-related diseases that result in cognitive (memory, thinking and reasoning) impairment. The disease can also cause tremors, an inability to focus, speech and language problems, difficulty eating and swallowing, visual perception problems, depression and hallucinations. Most of the people affected by dementia are seniors over the age of 65.

Alzheimer’s disease is the most common type of dementia. Other types of dementia include:

  • Lewy body dementia
  • Vascular dementia
  • Frontotemporal dementia
  • Huntington’s disease
  • Parkinson’s disease
  • Creutzfeldt–Jakob disease

Only a few types of dementia can be cured. Most cases will become progressively worse, usually until the person can no longer care for themselves. Caring for an elder family member with dementia can be physically, emotionally and financially overwhelming, especially as the disease progresses.

Dementia Symptoms & Care

During the early stages of dementia, care is usually provided at home. Dementia home care typically includes help with daily tasks like bathing, dressing, meal preparation, shopping, and transportation. Expenses will often include the cost of medical treatment and equipment, home safety equipment to prevent accidents and injuries, as well as items related to personal care.

Caregivers experienced in dementia care can also be hired to provide assistance. Hourly rates for a non-medical caregiver average $15 to $25 per hour, or $100 to $200 per day, depending on location and the services provided. The national average for a homemaker services (cooking cleaning and running errands) is $19 per hour. Home care can also include time spent at an adult day care center in the community.

Many seniors with dementia end up moving to an assisted living facility (ALF) or nursing home. An ALF is a residential community. There are various types of ALFS ranging from rooms in houses to apartment or condominium facilities. Residents will either share rooms or have their own private room, with access to common areas. Many ALFs have staff trained to provide the special care that is often needed by dementia patients. Assisted living facilities can cost a few thousand to several thousand dollars a month, with a national average of $3,500 per month.

The most expensive care for an elder with dementia is usually a nursing home. Nursing homes have licensed medical staff, including nurses and aids, to assist residents 24/7. In addition to providing personal care, the staff also helps patients with medication and therapy. Nursing home rates average between $200 and $250 per day depending on whether the room is private or semi-private.

Families are often unprepared for the costs of dementia care, and struggle to find financial solutions to ever-increasing medical bills and personal care expenses.

How to Finance Dementia Care

One way to pay for long term care like dementia care is by converting a life insurance policy into a Long Term Care Benefit Plan. The money is deposited into a Benefit account and can be used to pay for any medical or personal care-related costs.

Many times life insurance policies are allowed to lapse, either because circumstances have changed or the premium can no longer be paid. Sometimes the policy is given back to the life insurance company for a minimal amount of money (cash surrender value).

With a Long Term Benefit Care Plan, the policy holder can receive as much as 30% to 60% of the face amount, and the benefit is not taxable.

Dementia is almost always chronic or progressive. The costs for care will increase over time, especially when the disease leads to medical complications.

Let Elder Care Funding help you convert a life insurance policy into a Long Term Benefit Care Plan. To find out if your policy qualifies for this plan, complete the form below. You can also give us a call at 1-844-814-6511.

How To Pay For Long Term Care

How to Pay for Long Term Care

If you or a loved one are trying to figure out how to pay for long term care, you are not alone. It is estimated that nearly 10,000 baby boomers turn 65 every day and over two thirds of them will need some form of long-term care. Long-term care costs have only increased with the years and almost always vastly exceed whatever you might be expecting from Social Security or Medicaid/Medicare. Long-term care costs often impose great hardships on families who do not wish for their loved ones to end up in government facilities with shared rooms and substandard care.

Elder Care Funding would like to introduce our Long Term Care Benefit Plan as a solution to the problems you may be dealing with when it comes to affording long term care. But first, let us take a closer look at the issue.

Why are Long-Term Care Costs so High?

The simple answer to this question is: the demand for long-term care has increased dramatically in the last decade and the supply of long-term care providers has not grown fast enough to keep costs down. In the last decade, the costs of nursing home care have increased by nearly 6% every year. Today, a stay in a semi-private nursing home can cost over $100,000 per year. Costs for assisted-living facilities have also increased and can cost between $2500 and $6500 per month, depending on the facility and location.

Needless to say, these costs are substantial and can deplete all but the largest of nest eggs. My grandfather recently passed away and required long-term care for nearly eight years. He bravely served this great nation in World War 2 and became a successful cattle farmer after he returned home from the war. He retired a millionaire but ended up spending over 80% of his fortune on medical bills and long-term home care. If you or your loved one are not a retired millionaire, you could have great difficulty finding out how to pay for long term care.

Getting the Most out of Life Insurance Policies

Life insurance policies can be extremely valuable assets when it comes to long-term care. Unfortunately, they are often under-leveraged. Frequently, people trying to figure out how to pay for long-term care cash-out their life insurance policies or let the payments lapse because they can no longer afford the premiums. Don’t make this mistake! Life insurance policies with a death benefit in excess of $50,000 can be converted into long-term care plans which could be worth four times the cash surrender value! Elder Care Funding’s Long Term Care Benefit Plan can help you get the most out of your policy now!

Sign Up for the Long Term Care Benefit Plan Today!

If you cash out your policy, you could be losing a lot of money and could jeopardize your financial future and the care options for you or your relative. Take a look at the Elder Care Funding website to see if you qualify! Or call 1-844-814-6511 to speak to an elder care specialist!

How to Pay for Home Health Care

If you or someone in your family has a debilitating health condition, do you know how to pay for home health care?

Our health care needs change as we grow older. Many seniors will eventually require some type of medical or personal home care. According to a recent study, approximately 12 million Americans currently receive some type of health-related assistance at home.

Very few individuals ever include long term care in their financial planning. When it is needed, it is usually paid for out-of-pocket.

What is Home Health Care?

Seniors with health conditions can remain independent longer with home-based medical care and daily living assistance.
Home health care includes many different types of services, such as:

  • Medication management
  • Nutrition
  • Therapy and rehabilitation
  • Wound dressing
  • Help with getting in and out of bed
  • Bathing and dressing
  • Meal preparation
  • House cleaning
  • Transportation

The care is provided by licensed professionals such as nurses, therapists and home health care aides, as well as custodial care workers.

In some cases, the purpose of the care will be to help a senior recover from an injury or illness. Home care may also be necessary when a person is disabled or suffering from a chronic condition such as heart disease, endocrine disorders, metabolic diseases and diabetes. Hospice care for terminally ill patients can also be provided at home.

Home Health Care Payment Options

There are several ways to pay for home health care. Government programs such as Medicare will pay for short term, acute care on a limited basis. Medicaid will pay for home care if you meet very specific low income financial criteria.

You can also pay for home health care – without depleting bank accounts – by selling your life insurance policy.

Paying for Home Health Care with Life Insurance

You can use your life insurance policy to pay for home health care with a cash surrender, Accelerated Death Benefits (ADB), life settlements, viatical settlements or a Long Term Benefit Care Plan.

In a cash surrender, the policy is terminated and the life insurance company pays the policyholder a small percentage of its value.

Accelerated Death Benefits (ADB) is a provision in some insurance policies that allows benefits to be paid while the policyholder is still living. To qualify for the benefit, the individual must be terminally ill, confined to a nursing home and unable to perform daily living tasks.

A life settlement involves the selling of a policy to a third party. In most cases the policyholder must be 65 years of age or older. The money generated from the sale will be more than the cash surrender value, but less than the death benefit. It is also taxed.

Viatical settlements are life settlements for policyholders with a terminal illness, usually with a life expectancy of less than 2 years. Some viatical companies will offer settlements to terminally ill policyholders with a 5 year life expectancy.

Long Term Care Benefit Plans fall under the category of life settlements, and usually provide the highest percentage of cash – sometimes as much as 40% – 50%. The money is deposited into an irrevocable Benefit Account. Payments are made directly to caregivers by an account administrator. Medicaid considers a Long Term Care Benefit Plan a spend down of assets.

Once a life insurance policy is sold to a third-party or converted to a Long Term Care Benefit Plan, premiums will no longer need to be paid.

Paying for home health care can be costly. Elder Care Funding can help you or a loved one determine the best method of elder care financing, including how to pay for home health care. To find out if you qualify for a Long Term Benefit Plan, complete the form below or call 1-844-814-6511.

Tips on Funding Elder Care

Financing is often a key concern when an elder family member requires medical and personal care, especially when a senior has health issues. Funding elder care can be difficult. Even basic personal care services can cost tens of thousands of dollars a year. If skilled nursing care is required, annual expenses can jump to a staggering $120,000 or more per year.

Types of Elder Care Funding

There are two main types of funding for elder care: government support and private pay. Government support includes Medicare, Medicaid and veteran’s benefits.

Medicare is part of the Social Security Act and managed by the U.S. government. The program was launched in 1966 to ensure health care for seniors aged 65 and older and younger people with specific disabilities. You may also be eligible for Medicare if you have kidney failure.

In order to qualify for Medicare, you must be a U.S. citizen and have paid into the system. Medicare primarily focuses on emergency and short term care. It does not cover long term care or personal care such as assistance with hygiene and housekeeping. Skilled nursing may be provided under certain circumstances for 20 days. If longer care is needed, Medicare will cover costs that exceed $140.00 per day for the next 21 to 100 days.

Medicaid is a health care program for low income individuals of any age. The program will only cover long term care if you meet strict financial criteria. Individuals with assets rarely qualify for Medicaid.

Military veterans can receive disability benefits if the injury was service-related or the Aid and Attendance Benefit for non-disability cases who are war era veterans or their surviving spouses.

Funding Elder Care On Your Own

For many people, funding elder care will require tapping into other types of financial resources such as savings accounts and loans. However, depleting bank accounts and increasing debt can create new hardships and burdens.

One way to avoid a financial catastrophe is with a life settlement or viatical settlement.

A life settlement is the selling of a life insurance policy to a third party. The sale price is lower than the death benefit by much higher than the cash surrender value. In most cases, the policyholder must be at least 65 years old and not chronically or terminally ill.

Viatical settlements are a form life settlement structured for life insurance policyholders who have a chronic or terminal illness. In order to qualify for this type of settlement, life expectancy is generally 2 to 5 years.

In both cases, after the policy has been sold, the buyer becomes responsible for the policy’s premium payments. The buyer will also be the beneficiary of the policy when it is time for death benefits to be paid.

While there are no restrictions on how the money from a life settlement or viatical settlement is used, in most situations the income will go towards elder care. A third option involving a life insurance policy is a Long Term Benefit Plan. Similar to life settlements and viatical settlements, the policy is sold to a third party. The difference is that the money from the sale is deposited into a protected Benefit Account.

A Long Term Benefit Plan can be established fairly quickly, usually within 30 days. There are no limitations regarding what type of care the money is spent on and the money does not need to be paid back.

It can be heartbreaking to watch a family member’s physical or mental condition deteriorate as they age. It can also be devastating when financial resources for assisted living, nursing home or hospice care are limited – or nonexistent. Elder Care Funding specializes in finding financial solutions for seniors in need of medical and personal care. To find out if you qualify for a Long Term Benefit Plan, complete the form below. You can also give us a call at 1-844-814-6511.