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A new life settlement option has been developed to assist senior clients who have an immediate need of long term care. It applies to nursing home care, home skilled nursing care, assisted living, and hospice. This long term care (LTC) benefit program is an approved Medicaid spend down and allows the sale of a life insurance policy rather than forcing someone applying for Medicaid to surrender their life insurance. Funds from the sale of the policy are placed in an irrevocable trust to begin immediate payout for LTC monthly expenses. This program is gaining in popularity as Legislators see it as a good way to control Medicaid costs.
For adult children who are caring for their parents at home rather than putting them in a nursing home, this program can help keep them from having to dig into their own retirement or education funds in order to care for a parent. This is not long term care insurance because this program is only applicable for clients in need of LTC right now. It is a timely option for those that did not plan ahead by getting insurance but still need some financial assistance.
As needs for better standards of living arise for seniors who have outlived their retirement income, who are straining family budgets or who weren’t prepared for increased costs associated with long-term care, alternatives like the long term care benefit program, have been a valuable and life-saving solution for advisors — helping them support families with aging parents.
Talk to a Secondary Market Specialist at 800-384-8080 or visit ashargroup.com for more information on this emerging market.
