Long Term Care Benefit Plan
A Long Term Care Benefit Plan is the conversion of an in-force life insurance policy into a pre-funded, irrevocable Benefit Account that is professionally administered with payments made monthly on behalf of the individual receiving care. This option extends the time a person would remain private pay and delays their entry onto Medicaid. The policy transaction is specifically designed to conform to the secondary market regulations that govern life settlement/viaticals, and the Benefit is administered specifically to be a Medicaid qualified spend-down of the asset proceeds. By obtaining the fair market value for the life policy, and then at the direction of the policy owner putting the funds into an irrevocable bank account which can only be administered third-party to pay for Medicaid/Medicare qualified long term care services; the Long Term Care Benefit Plan is a regulated and Medicaid qualified financial vehicle to help cover the costs of long term care.
Every Year, Millions of Seniors Abandon a Life Insurance Policy and Get Nothing In Return…
Converting a life insurance policy into a Long Term Care Benefit Plan provides multiple layers of consumer protections:
- The transfer of ownership of life insurance policies conforms to the rigorous regulatory standards that govern life settlements in each state.
- The irrevocable, FDIC insured Benefit Account is held by a nationally chartered bank & trust company and must conform to federal and state banking regulations.
- Because the account is irrevocable and can only be spent on long term care services, the Benefit Plan is administered as a Medicaid qualified spend-down.
Converting a life insurance policy into a Long Term Care Benefit Plan can pay for long term care expenses
Life insurance can be converted to a Long Term Care Benefit Plan that will pay for the cost of care directly every month. The Long Term Care Benefit Plan is specially designed to address immediate needs to pay for long term care services so qualifying is quick, uncomplicated, and can be done quickly.
Converting a life insurance policy to a Long Term Care Benefit Plan is a Medicaid qualified spend down of the policy and preserves a portion of the death benefit for the family.
After years of premium payments, many policy owners will allow a policy to lapse or surrender it for any remaining cash value. This is a big mistake when the same policy could be converted into a Long Term Care Benefit Plan to pay for the costs of long term care and funeral expenses.
If a policy owner no longer needs, or can no longer afford their policy, and is considering letting it lapse or surrendering it for the remaining cash value—then the Long Term Care Benefit Plan is the answer.
Key Benefits of the Program Include:
- No premium payments
- Most types of in-force life insurance qualify (Term, Universal, Whole, Group, etc.)
- Provides funeral benefit
- All types of senior living and long term care qualify
- Payments made direct to care provider
- The Long Term Care Benefit Plan can be used in combination with a long term care insurance policy, an annuity, a VA Aide & – Attendance recipient, or any other financial vehicle
Long Term Care Benefit Plan Examples
Policy Face Value
Policy Face Value
The examples above are for illustrative purposes only and do not constitute a guarantee for other transactions. Source: LCFG