Converting Unneeded Life Policy into a LTC Benefit Plan?

Mar 2, 2016

  1. Brian Anderson
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    Brian Anderson Executive Editor

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    Well-known senior care advocate and insurance industry veteran Chris Orestis just contributed an article that talks about his variation on life settlements – called a Long Term Care Benefit Plan. Check it out at the link below for more on the strategy, and share your thoughts here as to whether it is something agents should consider recommending to appropriate clients – or why you might seek a different path.

    Insurance Forums | No-longer-needed life insurance may hold solution for clients looking for a way to pay for LTC, senior living needs
     
  2. CALTCAgent
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    CALTCAgent Guru

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    Life Care Funding converted it into a Long Term Care Benefit Plan that allowed the family to set up a monthly benefit payment to cover 24-hour in-home skilled nursing care for the remainder of his life.

    I read the benefit he gets is $10,000 a month, which I don't think covers 24 hour skilled care and for 15 months only.

    Is it lifetime or 15 months ?

    If 15 months, he may have to go on medicaid/medi-cal anyway.

    I don't see this working in many situations. The example was at 60% of the death benefit, which is the highest. It goes as low as 20% of the death benefit.
     
  3. gora268913
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    gora268913 New Member

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    I would try to convert first. Most of the time it requires a new medical and if the health is fine I would convert into hybrid.
     
  4. CALTCAgent
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    CALTCAgent Guru

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    What hybrid would you convert to ?