Instead of allowing a life insurance policy to lapse or be surrendered; the owner of the policy can convert the policy into a Long Term Care Benefit Plan.A Long Term Care Benefit Plan is the conversion of an in-force life insurance policy into an irrevocable, FDIC-insured Benefit Account that is professionally administered with tax-free payments made monthly on behalf of the individual receiving care. Policy owners have the legal right to convert an in-force life insurance policy to enroll in the benefit plan, and are able to immediately direct tax-free monthly payments to cover any form of senior care they choose: Homecare, Assisted Living, Nursing Home, Memory Care, and Hospice.
This option extends the time a person would remain private pay and delays their entry onto Medicaid. It is a unique, tax-advantaged financial option to pay for care because all health conditions are accepted, and there are no wait periods, no care limitations, no costs to apply, no requirement to be terminally ill, and there are no premium payments.
- In-force life insurance policy (Term, Universal, Whole and Group) with a death benefit between $50,000-$1,000,000
- Current need for Homecare, Assisted Living, Nursing Home Care, Memory Care, or Hospice (within 90 days of enrollment)
Highlights of the Long Term Care Benefit Plan:
1) Specifically for people that have an immediate need for Senior Care of any form: Homecare, Assisted Living, Nursing Home, Memory Care, Hospice (usually within 90 days)
2) Works for Term (convertible or non-convertible), Universal, Whole and Group policies with death benefit of $50,000-$1,000,00
3) Simplified underwriting requirement (review of medical records from last 2 years and phone interview to confirm need for care and type of care to be funded with Benefit Account)
4) The entire proceeds from sale of the policy will go into an irrevocable, FDIC insured bank & trust account
- The account is irrevocable to protect the money for the account holder
- The account is a Medicaid qualified spend-down so once the account is spent-down the account holder can immediately switch to Medicaid to pay for their care
- The account is tax advantaged because the funds are spent on long term care
5) The Account preserves a funeral benefit for the family or it will pay the entire balance tax-free to the family if the account holder dies before the account has been spent-down.
6) The Account pays a monthly, tax-free benefit directly to the care provider of choice
- Amount and provider can be changed with 30 day notice
- Additional amount can be drawn for one-time special need circumstance
7) Fast and easy process to apply and enroll in a Long Term Care Benefit Plan with the average time to enroll and start receiving first benefit payments is 30 days
- no costs
- no obligations
- no more premiums