A Life Insurance Conversion Program is a new type of program and at the time of writing, there was only a single organization offering the program.  The program’s name is the Life Care Funding Assurance Benefit Plan (ABP).

For example, a policyholder sells their policy for $36,000.  They move into an assisted living community that costs $3,000 / month.  The policy buyer will pay directly to the assisted living community, the complete cost of care for one year ($3,000 / month x 12 months = $36,000).  Should the assisted living resident pass away before the year is complete, there is a preservation of assets clause that will pay out the remainder of the agreed upon amount to a designated individual. 

The policy would be of no value to the individual were it allowed to lapse and the cash surrender value might be very low relative to the policy amount.  By converting the policy into long term care payments, the policy holder is able to get greater economic value from the policy then the cash surrender value and they receive that benefit while they are alive and require care.  The other benefit of the Assurance program is that for the duration of the agreement, the family is freed from the administrative tasks of managing the policy and managing payments to their care provider.

To read the entire Assurance Benefit Analysis by Paying for Senior Care, click here

My grandfather and his three brothers all served in World War II.  My other grandfather served in World War II and Korea.  My uncle served in Viet Nam.  All of them saw active, combat duty and all returned safely except my uncle who made the ultimate sacrifice for his country. 

On today’s Veteran’s Day it is important to take a moment and honor the sacrifices that so many have made, and continue to make today, for this country.   Many of those who have served as young men and women are now seniors.  They gave much to this country and in comparison asked for little in return.  Today, they again are facing great challenges in the form of an unstable economy and a long term healthcare system that can be too expensive for some to access. 

Fortunately for our veterans, there is a financial program offered by the Veteran’s Administration that will help pay for the costs of long term healthcare.  The Veteran’s Aide and Attendance Benefit provides financial support for veterans who served in active combat duty on foreign soil. 

The program work like this: 

VA Aid & Attendance Criteria

· Veteran would have had to serve at least 90 days of active duty with at least one day served during an active time of war.

· Veteran or a surviving spouse (or married couple) would have to have less than $80,000 in assets (excluding a primary residence and a vehicle).

· Veteran or a surviving spouse must spend the financial assistance on out-of-pocket medical expenses.

· Veteran or surviving spouse would need assistance with their activities of daily living.  

2009 monthly Aid & Attendance rates

• Surviving Spouse $1,056

• Healthy Veteran with Sick Spouse $1,291

• Single Veteran $1,644

• Sick Veteran with Spouse $1,949

If the family of a veteran is struggling today with the costs of senior housing and long term care, then accessing this benefit should be considered.  To learn more about how to apply click here http://www.lifecarefunding.com/brochures/20100831/vaannouncementflyer.pdf or please send an email to info@lifecarefunding.com or call 888-670-7773 x 1.

This was sent to us by a friend of Life Care Funding Group:

“Let us solemnly remember the sacrifices of all those who fought so valiantly, on the seas, in the air, and on foreign shores, to preserve our heritage of freedom, and let us reconsecrate ourselves to the task of promoting an enduring peace so that their efforts shall not have been in vain.”

Facts About Our Veterans

• On June 1, 1954, after the country had been through World War II and the Korean War, Congress amended the Act of 1938 (proclaiming Armistice Day) to honor all American veterans! of all wars.
  
• There are approximately 23 million military veterans in the United States. (U.S. Veterans Administration)
  
• There are 1.5 million female veterans in the United States. (U.S. Census Bureau 2009 American Community Survey)
  
• There are 78,000 living veterans who served in all three of the following wars: World War II, Korea, and Vietnam. (U.S. Census Bureau)
  
• There are approximately 2.4 million veteran-owned companies. (U.S. Census Bureau)
  
• There are 3.3 million veterans with a service-connected disability. (U.S. Census Bureau)
  
• 9.8 million veterans between the ages of 18-64 are in the labor force. (U.S. Census Bureau)
  
• The VFW Buddy Poppies, the little red flowers offered by VFW members soliciting donations, are actually assembled by disabled veterans. Sales of the flowers provide these veterans with additional income as well as a form of therapy.

A report tracking Medicaid spending going back over the last seven years showed that Medicaid underfunded payments for services to all patients by $14.17 everyday in 2009.  Projections are that this alarming underfunding trend will get worse in 2010 and 2011.  The economic crisis has robbed state budgets of funds available to support Medicaid funded programs and as a result there was a national deficit of almost $5 billion.   

Medicaid funds at least 2/3 of all spending for nursing home care. Spending shortfalls of this magnitude threaten the ability of nursing homes to offer the highest levels of care for the most vulnerable populations.  Frustratingly for nursing homes and those in their care, state governments were given money in 2009 via the American Recovery and Reinvestment Act to make up this deficit.  But guess what—governments diverted the money away from providing the healthcare it was intended, and instead used the money to shore up their own budget deficits.   

As readers of the Life Care Funding BLOG know, we continue to bring awareness to the unavoidable trend of reducing the amounts of money that are available for Medicare and Medicaid.  And why is that?  Because we are now in the throes of an explosion of Baby Boomers reaching retirement age at the same time that our country’s economy is under siege and entering unfamiliar territory.  Washington, DC and 50 state capitols have no choice but to figure out how to make do with less. 

They have two tools to work with:

1.      Make it harder for people to qualify for Medicare and Medicaid, and--

2.      Reduce what is available for those that do qualify. 

What tools do seniors and their families have to work with? 

1.      Information

2.      Time 

People need to arm themselves with information about how the system works and what kind of funding options (and limitations) they have to work with.  And, people need to stop waiting until the last minute to plan for their inevitable time in long term care.  In one form or another, (home or facility based) as people age and/or become frail they will need someone to help care for them.  That care will cost money and that money has to come from somewhere.  As the government makes it harder and harder to access less funding, people need to prepare to bear much of the financial burden on their own.  To ensure quality of life and dignity when the time for long term care arrives; people must make the effort today to understand what kind of financial options are out there such as the VA Benefit, Life Insurance Settlements, Credit Programs, Reverse Mortgages, Long Term Care Insurance and other sources of private funding.

To read more about Medicaid budget deficits, click here. 

State of Maine Announces proposal to cut 10% out of nursing home Medicaid spending in 2010:

Governor Baldacci released his proposed FY 2010-2011 State budget Friday afternoon. As in previous years, the Departments of Health and Human Services and Education are being asked to bear the brunt of significant cuts including 10% rate cuts to some MaineCare providers including nursing homes and residential care facilities. Preliminary analysis shows that the cut to nursing homes is in the area of $26 million. It is harder to separate the hit to res care, but we estimate it to be in the area of $10 million or a little over $9.00 per resident day. The newest figures (Nov. 2009) from AHCA indicate that Maine currently underfunds its nursing homes by $25.5 million per year. This translates to an average loss of $16.20 per resident per day. So, it seems reasonable to estimate that the proposed cuts will double those shortfalls.

Demand to help seniors with the costs of senior housing and long term care continues to rise across the country.  In response,  Life Care Funding Group has begun adding “Network Partners” at the local level around the U.S. to support senior living facilities and work directly with families.

Starting in the Midwest with Jo Letwaitis, Founder and CEO of the The Senior Site, Inc., senior care experts are being endorsed to represent Life Care Funding Group and make Funding Solutions available to help more people.

In the coming weeks, more Network Partners will be announced in other regions of the country.  To learn more about how to access the Network Partner program, contact Life Care Funding Group at info@lifecarefunding.com.

To read the Network Partner announcement, click here.

My grandfather and his three brothers all served in World War II.  My other grandfather served in World War II and Korea.  My uncle served in Viet Nam.  All of them saw active, combat duty and all returned safely except my uncle who made the ultimate sacrifice for his country. 

On today’s Veteran’s Day it is important to take a moment and honor the sacrifices that so many have made, and continue to make today, for this country.   Many of those who have served as young men and women are now seniors.  They gave much to this country and in comparison asked for little in return.  Today, they again are facing great challenges in the form of an unstable economy and a long term healthcare system that can be too expensive for some to access. 

Fortunately for our veterans, there is a financial program offered by the Veteran’s Administration that will help pay for the costs of long term healthcare.  The Veteran’s Aide and Attendance Benefit provides financial support for veterans who served in active combat duty on foreign soil. 

The program work like this: 

VA Aid & Attendance Criteria

· Veteran would have had to serve at least 90 days of active duty with at least one day served during an active time of war.

· Veteran or a surviving spouse (or married couple) would have to have less than $80,000 in assets (excluding a primary residence and a vehicle).

· Veteran or a surviving spouse must spend the financial assistance on out-of-pocket medical expenses.

· Veteran or surviving spouse would need assistance with their activities of daily living.  

2009 monthly Aid & Attendance rates

• Surviving Spouse $1,056

• Healthy Veteran with Sick Spouse $1,291

• Single Veteran $1,644

• Sick Veteran with Spouse $1,949

If the family of a veteran is struggling today with the costs of senior housing and long term care, then accessing this benefit should be considered.  To learn more about how to apply, please send an email to info@lifecarefunding.com or call 888-670-7773 x 1.