New York Times
A New Way to Pay for Lo
ng Term Care
Journal
Wall Street se of Life Policies to
u
States ease erm Care
T
g
Pay for Lon
PBS
Life Insu
r
a Financ ance Proposal
Gives F
ial Lifelin
amilies
e
USA Today are for
p
5 Ways to Pre
LTC Costs
t
iremen ge for Seniors
t
e
R
’s
er
rid
Kipling : A Funding B
t
Conning & Co.: New source of funds is alignment
Repor
of long term care providers and state governments
Fox Business News
Why it’s time to change ou
r approach to
Long Term Care
InsuranceNew
sNet
More than one
way to pay for lo
ng
term care
Funding Long Term Care with
Life Insurance is Catching On
As featured in…
Life Care Funding works with families searching
for solutions to the long term care puzzle
“Again, I want to thank
you for your patience and
support during this challenging
time and I can finally see the light at
the end of the tunnel. I really appreciate
all of the hard work you have put
in throughout this entire process.” –
Constance K, VA
“Great news! Thank you so much. You
have given me wonderful news today
that I needed so badly. This will help
my father and his finances as well as
my own! And now I can be caught up
financially and back on schedule. He has
been in care for over 4 years. Terrible
disease and very expensive. Again thank
you so much for calling and I will
continue to tell everyone I know about
your company. My heartfelt gratitude to
you. Thank you so much.”
– Elbert A, TX
“Thank you very much for your
assistance in helping my mother GOD
Bless You.” – Elizabeth T, SC
“Thank you so much for help. This
illness and the financial stresses are very
overwhelming. I appreciate the kindness
you showed me during this process.” –
John P, GA
“I appreciate all the help you gave us
because we never could’ve afforded the
wonderful woman who came to help us
these last 8 months. We never could’ve
afforded her care. Thank you soooo
much for everything!”
– Patricia R, GA
“You have been an ‘Angel’ for me
throughout these last months/days. You
“My father was upset that he was a
will always have a special place in my
financial burden on me and my husband heart! I never wanted to move her to a
causing a lot of strain on our marriage.
state supported nursing home and you
Life Care Funding took all that away.
helped me make that happen - Thanks
Your company moved swiftly and got
for all of your help. You have been great
the job done with your long term care
to work with! .....and I meant what I
benefit plan. I cannot express to you the
said about what a pleasure it is to work
burden off of me. Your company is the
with you.” – Jerry A, TN
real deal- in a world where it seems like
no one cares. You treated my father and
myself with respect, love, concern –I will
be forever grateful!” – Carrie S, IL
Families across the U.S. use
Life Care Funding to help pay for care
Family converts a life insurance policy
to pay for senior care
The applicant’s son called to inquire about converting a life
insurance policy they were planning to abandon. His mother was
unable to live at home alone any longer and they were looking into
Assisted Living but needed financial help. Their mother owned a
$100,000 universal life insurance policy and submitted a Life Care
Funding application. Within 30 days, the application was approved
and the $2,000 monthly Long Term Care Benefit payments began
that same day. The family moved their mother into the Assisted
Living community that she was hoping to reside in with a number
of her friends and relatives. By adding $2,000 a month to what
they already had available to pay for her care they were able to
keep their mother in the community for over two years.
www.IWantMyLTC.net
877-270-3127
Son helps his mother convert policy
and move into assisted living before he
deploys for Afghanistan
A family was struggling with how they would pay for the costs of
moving their mother into an assisted living community. Increasing
the pressure was the fact that her son was going to be leaving
for Afghanistan within 90 days for a tour of duty with the military.
Their mother owned a $95,000 term life insurance policy that
was going to lapse if they did not immediately make an expensive
premium payment. The assisted living community suggested
that they contact Life Care Funding to discuss converting the
policy into a Long Term Care Benefit Plan. Before the policy
could lapse, Life Care Funding converted the policy into a Benefit
Plan that allowed them to immediately move their mother into the
community. There was still time for her son to help her move-in
and get settled before he left for Afghanistan the next month.
Care providers in every state work with Life Care Funding
to help families pay for Senior Living and Long Term Care
Trusted Partner Communities by State
Number of Senior Care Providors
1-100
www.IWantMyLTC.net
100+
877-270-3127
Keynote Presentations, Legislative Testimony,
Radio and TV Appearances
Keynote presentations
and legislative testimony
• New York Society for Financial Service
Professionals
• Veteran’s Advocate Group of America
• CMG Agent SUCCESS Conference
• American Association for Long Term Care Insurance
Published White Papers
National TV and Radio shows
• Are You Prepared For Long Term Care? What You
Need To Know Today
Television Shows
• Dangerous liabilities lurk for families and advisors in
long term care planning
National Radio Shows
• A Long Term Care Benefit Plan can be a TaxAdvantaged Vehicle to pay for Senior Care
• The Small Business Advocate Show
• “People, Money, & Life”
• CRN “Talk Back with Chuck Wilder”
• Florida Assisted Living Federation: Annual Meeting
• Long Term Care Benefit Plan Spend-Down and
Medicaid Eligibility: Asset Recovery Rules and Filial
Responsibility Laws
• Maine Senate Committee on Insurance and
Financial Services
• States Fight for the Legal Rights of Policy Owners to
Pay for Long Term Care
• Texas House Committee on Human Services
• Private Pay or Medicaid? Long Term Care Benefit
Qualifies for Both
• IRN USA Radio #1 / News & Views/ Ronn Allen
• The Silver Tsunami and Long Term Care Funding
Crisis
• Genesis Communications Radio Network/ Josh
Tolley
• Life Expectancy Compression: The impact of moving
into a long term care facility on length of life
• Lifestyle Talk Radio Network/ Frankie Boyer
• The Treatment of Life Insurance as an Unqualified
Asset for Medicaid Eligibility
Local Radio Shows
• KIXI-AM 880, Seattle,
WA
• KJCE-FM, Austin, TX
• KFBK-AM, Sacramento,
CA
• WFSX-FM, Fort Myers,
FL
• Texas Assisted Living Federation: Annual Meeting
• Florida Senate Committee on Banking and
Insurance
• The Harvard Club
• National Conference of Insurance Legislators
(NCOIL)
• ALFA Senior Living Leadership Forum
• Florida Health Care Association Legislative
Conference
• The Growing Use of Life Insurance Policy
Conversions
• Senior Market Advisor Annual EXPO
• Medicaid Life Settlements: Am I Eligible for
Medicaid?
• LTC 100
unding
unding assists people
in need
senior housing and
long term
s of Senior Care provide
rs
ding originated and
is the
e death benefit of
an inan irrevocable, FDIC
insured
of home care, assisted
e, and hospice.
ursing homes, retireme
nt
providers and senior
care
g to families every
day. Our
as brought awaren
ess about
millions of people
across
a such as Kiplinge
r’s,
blic Broadcasting
have all
Care Funding Benefit
.
• Fox Morning News: Good Day Show
• Sirius Satellite/ Maggie Linton Show
• This Week in America / Ric Bratton
• Issues Today/ Bob Gourley
• KGO-AM 810, San
Francisco, CA
Senior Living
Life Care Funding Fact
the
Life Care Funding converts
life
death benefit of an in-force
Life Care
insurance policy into a
t
Benefit Plan. The enrollmen
process is specifically designed
to
to address immediate needs
so
pay for long term care services;
cated,
qualifying is quick, uncompli
days.
and can be done in 30
to
nts
requireme
There are two
Plan
Benefit
Care
Life
a
in
enroll
needs:
tailored to your specific
ds from the sale of
a life insurg but not limited to
who owns
oceeds, the size of
the estate
purposes of state
taxation). This
ng advice; and it
cannot be used
RS penalty. Anyone
interested
ng Term Care Benefits
cular circumstances should
from an
Funding Solut
Did
ionsYou
for
• Need for Senior Care
services (within 3 months)
• Ownership of an in-force
life insurance policy
Know…
they
Once the applicant is enrolled,
e for paying
are no longer responsibl
benefit
premiums; monthly, tax-free*
to the
payments will be sent directly
the
care provider of their choice;
be paid to
entire benefit amount will
should the
the designated beneficiary
any benefit
enrolled pass away with
A life insurance policy can pay
for senior care expenses
Instead of lapsing or surrendering
life insurance – a
policy can be converted
into an irrevocable Benefi
t
Account that makes monthly,
tax-free* payments
on behalf of the individual
receiving Senior Care.
There are no wait periods;
no care restrictions; no
costs or obligations to apply;
it is not a loan; and
there is no need for premium
payments.
The Life Care Benefit is fl
exible and can be
adjusted to meet changes
in Senior Care needs;
it provides a tax-free* funeral
expense benefit;
and any remaining account
balance is paid to the
family tax-free*. 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 used
to pay for the costs of Senior
Care.
2013 National Averag
e
Costs Senior Care
> Nursing Home- $7,000/m
o.
$84,000
> Assisted Living - $3,450/m
o.
$41,400
> Homecare - $6,384/m
o.
$76,608 *12 hours per day
($19/hr.)
Survey 2013
Life Care Benefit Example
s
Example #1
Gender / Age
Policy Size
Policy Conversion
Male / 77
$100,000
$45,000
Monthly Benefit
$4,500
Benefit Duration
9 months
Funeral Benefit
$4,500
Example #2
Gender / Age
Female / 74
Are there any fees charged
or
premium payments?
No, there are no fees or
obligations to apply and
no more premium payments
due on the policy.
$800
What type of life insurance
policies qualify?
24 months
Gender / Age
Policy Size
Female / 76
Are funeral expenses covered?
•
Most forms of in-force
life insurance
qualify including Term,
Universal, Whole,
and Group.
Policy Conversion
• Home Care
$105,000
Monthly Benefit
$5,000
• Independant
Living
Funeral Benefit
$5,000
20 months
The examples above are
for illustrative purposes
only
and do not constitute a
guarantee for other transactions.
Source: Life Care Funding
More information and applicatio
n
available online at
www.lifecarefunding.c
om
or contact a Life Care Funding
representative at
888-670-7773
benefit is paid to the family.
What type of care will the
Benefit cover?
$376,000
The examples above are
for illustrative purposes
only and do not constitute
guarantee for other transactions.
a
Source: Life Care Funding
Benefit Duration
• Maine Public
Broadcasting System
(PBS)
• Florida Public
Broadcasting System
(PBS)
• KLGO-AM, Austin, TX
“Life Care Funding moved
with
swiftly and got the job done
your benefit plan. Your company
where
is the real deal in a world
You
it seems like no one cares.
back
gave my father his dignity
and I will be forever grateful!”
Benefit Plan
Yes, a tax-free* funeral
$2,500
• WMGG-AM, Tampa, FL
Is the Long Term Care
Benefit an
insurance policy?
No, it’s a Long Term Care
administered by a third
party on behalf of the
insured and family with
the tax-free* payments
sent every month directly
to the provider of long
term care services.
$21,700
Funeral Benefit
• Provides tax-free* Funeral
Expense benefit
• WOCA-AM Ocala, FL
Life Care Funding
888.670.7773
[email protected]
arefunding.com
Policy Conversion
Monthly Benefit
• KAHI-AM, Sacramento,
CA
• No age minimum
• No premium payments
life
• All types of in-force
insurance qualify
made
• Monthly, tax-free* payments
acility
directly to care provider/f
• WGCV-AM 620,
Columbia, SC
www.lifec
Frequently Asked Questio
ns
$50,000
Benefit Duration
• CBS Radio, Sacramento,
CA
Key Benefits of the
Program Include:
n and
• Simple, no-cost applicatio
no obligation review process
• WPTF-AM, Raleigh, NC
– Carrie S. from Indiana
Policy Size
Example #3
Sheet
a final
account balance left; and
is preserved
expense funeral payment
well. The Life
for the family tax-free* as
in combination
Care Benefit can be used
policy,
with a long term care insurance e
Attendanc
an annuity, a VA Aide &
vehicle.
recipient, or any other financial
asset
Life insurance is an unqualified
qualify
for Medicaid eligibility. To
lapse or
an applicant will need to
surrender their policy. Converting
Life Care
the policy instead into a
every
Benefit that pays directly
of Senior
month towards the costs
portion of
Care, and it preserves a
family.
the death benefit for the
many
payments,
After years of premium
a policy to
policy owners will allow
any remaining
lapse or surrender it for
mistake when
cash value. This is a big
converted
the same policy could be
Care.
to pay for the costs of Senior
Life Care Funding converts
life insurance
into monthly, tax-free* payme
nts covering any
form of Senior Care
Funding Solutions for
• WNAV-AM, Baltimore,
MD
Life Care Benefit
enior Living
Senior Living
• KXFN-AM St. Louis, MO
Funding Solutions for
unding Solutions for
Senior Living
• Bloomberg Radio / Taking Stock Show
• WMGG-AM, Tampa, FL
Did You Know…
A life insurance
policy can pay
for senior care
expenses
Genworth Cost of Care
• Hometown Happenings
Is the policy sold?
• Assisted Living
• Memory Care
• Nursing Home
• Hospice Care
Yes, as part of the Benefi
t Plan enrollment the
policy owner will complete
a life settlement
working directly with a licensed
Provider.
*Please note that the tax
treatment of the proceeds
from
the sale of a life insurance
policy will depend on many
factors, including but not
limited to who owns the
policy,
the health of the insured,
the use of proceeds, the
size of
the estate and the state
in which
(for purposes of state taxation). the policy owner lives
This material does not
constitute tax, legal or
accounting advice; and
it cannot
be used by any taxpayer
for the
IRS penalty. Anyone interested purpose of avoiding any
in selling a life insurance
policy in order to fund Long
Term Care Benefits should
seek professional advice
based on his or her particular
circumstances from an
independent tax advisor.
Life Care Collateral has been developed to
educate families about senior care
We offer brochures, flyers, newsletters and
informative FAQs to help your clients get the facts
and information they need.
www.IWantMyLTC.net
877-270-3127
Life Care Funding publications
informing consumers and professionals
Best Selling Amazon E-Book
Help on the Way: The Big Insurance Secret seniors aren’t
supposed to know…
“Many people who need Assisted Living or Home Care can’t afford it, so they
drop life insurance policies they’ve been carrying for years in order to qualify for
Medicaid. A system that encourages people to abandon their policies to go onto
public assistance is broken and has to change. Seniors and their families lose out
from the fact that they have made premium payments for years on a policy that
they will end up abandoning. The problem is they don’t know it can be converted
into a Long Term Care Benefit Plan. It’s a secret that’s been kept from seniors for
decades: Your life insurance policy can be used to pay for all forms of senior care
such as Home Care, Assisted Living and Nursing Home expenses. But here’s the good news-- it isn’t a secret anymore.”
– Chris Orestis, Author & CEO of Life Care Funding, Senior Care Advocate and former insurance industry lobbyist
Book Review by Pocketful of Thoughts
“Help On The Way is a very technical read. Chris lets you know what you will learn by reading his book right in
the beginning. If there is a way to convert your policy, this would be a great resource for you to get guidance from.”
Thousands of people every month visit
LifeCareFunding.com seeking senior care resources
Blog • Do you qualify • In the News • Did You Know Videos
Find Trusted Partners • FAQs
www.IWantMyLTC.net 877-270-3127
Life Care Funding has been a prominent &
positive fixture in the press for years
New York Times- A New Way to
Pay for Long Term Care (October 9,
2013)
Fox Business News- Why it’s time to
change our approach to Long Term
Care (September 19, 2013):
“I was visiting an assisted living facility
recently with my sister, whose disability
made that a prudent choice, when the marketing manager
handed us a brochure. It asked, “Did you know a life insurance
policy can pay for long-term care expenses?” Life Care
Funding, said Chris Orestis the chief executive, puts the money
in an F.D.I.C.-insured account used to send monthly payments
directly to any long-term care provider. You can switch from
one provider to another as your needs change, but you can’t
use the money for a vacation (or blow it at a casino).
One of the biggest question marks hanging over every
boomers’ retirement plan is how much money they will need
for medical costs. Last week, the federal Commission on LongTerm Care released more than two dozen recommendations
detailing ways to enhance and make services for older
Americans and people with disabilities more affordable.
Chris Orestis, a long-term care specialist and the CEO of Life
Care Funding, has made formal recommendations to the
commission and created a model to provide an option for
middle-class people who are not wealthy enough to afford
paying for long-term care out of pocket, and not poor enough
to qualify for Medicaid assistance.
Wall Street Journal- States Ease
use of Life Policies to Pay for Long
Term Care (June 16, 2013)
State lawmakers are encouraging elderly residents to use life
insurance as a way to pay for long-term care—and lower the
Medicaid tab in the process. States hope to stop people from
dropping their life-insurance policies in order to qualify for
Medicaid. “This focuses on middle-class policyholders with
coverage worth $100,000 on average,” said Chris Orestis, chief
executive of Life Care Funding. “They’re not wealthy enough
to pay for long-term care for a long time, and they’re not poor
enough to qualify for Medicaid right away.”
Wall Street Journal - New State
Laws (June 27, 2013)
There’s growing recognition among state
lawmakers that elderly residents with
modest life-insurance policies could be using it to pay for
long-term care – and delay, or maybe avoid altogether, having
to use Medicaid. “Seniors have been abandoning policies
needlessly, and the insurance companies have been benefiting
at the expense of the policy owners and taxpayers who have
been picking up the tab with Medicaid to cover long-term-care
costs,” says Chris Orestis, chief executive of Life Care Funding.
“Now that the word is really starting to spread, more seniors
will understand they have this option to help them, and it is a
much better option than abandoning their life policies to go on
to Medicaid,” he adds.
ABC News/USA Today/AP
Newswire- 5 Ways to Prepare for
Possible Long-Term Care Costs
(October, 2014)
What constitutes long-term care can vary
widely. Services are typically provided in
one of three settings: at an assisted-living facility, at home with
the aid of a caregiver, or in a nursing home. Assisted-living
facilities generally don’t accept Medicare and Medicaid, said
Chris Orestis, CEO of Life Care Funding, which converts life
insurance policies into protected long-term benefit funds. An
option is to convert a life insurance policy into a long-term
care benefit plan. This means selling your policy to a company
that will pay out between 30 percent and 60 percent of the full
benefit when you need long-term care. Any funds you don’t
end up using go to a beneficiary of your choice.
www.IWantMyLTC.net
877-270-3127
Political leaders and consumer advocates are vocal
supporters of Life Care Funding
“I believe it could be
a win for Medicaid
service recipients, a win
for the fiscal soundness
for Medicaid, it could
be a win for potential
beneficiaries under life
insurance policies and
I think it could be a
win for long-term care
service providers,”
Jack McRay, a spokesman for the
Florida AARP.
“It saves the state money, because
otherwise you would just cash in
the value of the life insurance and
get $5,000 or something, and go on
the Medicaid roll immediately. The
policyholder benefits because he has
cash he can direct to his own care
and expenditures,” said Texas Rep.
Craig Eiland.
“When family members can’t or don’t “Most people do not realize that a
life insurance policy is an asset that
want to keep the policy, a Medicaid
they are legally entitled to convert
life settlement could provide an
into another form of coverage,” said
important option for these policy
owners and, at the same time, benefit Ron Aylor, Senior Vice President
at Brookdale Senior Living.
the taxpayers who are footing the
“The Life Care Benefit Plan gives
bill for Medicaid. With all these
people a quick and simple option
advantages, it is no wonder more
to convert a life insurance policy’s
and more states are considering
death benefit into a life care benefit
Medicaid life settlement laws,” said
and immediately apply it toward
Robin S. Weinberger, CLU, ChFC,
covering the costs of residing in a
CLTC.
Brookdale community.”
www.IWantMyLTC.net 877-270-3127
Life Care Funding has been the model for
Consumer disclosure legislation across the U.S.
“In 2010, NCOIL unanimously passed the Life Insurance
“What is new is the concerted effort to integrate life
Consumer Disclosure Model Law. Conversion of a life
insurance policies and long term care providers. This is a
insurance policy to a Long Term Care Benefit Plan is
recent development involving – Life Care Funding. This
one of the approved options in the Model Law. “It is
new source of funds represents a potential alignment of
long term care providers and state governments. Both state imperative that policy holders understand that they have
alternatives to merely lapsing or surrendering their policy.
governments and the long term care industry are working
The model would require a clear notice to consumers…
to find a solution to the budgetary threat to Medicaid
including conversion to long term care.”
created as aging Baby Boomers impoverish themselves in
order to have the state pay for long term care.”
NCOIL President Rob Damron (KY)
Conning and Company Industry Report
“Right now life insurance policies are being abandoned,
so the senior can receive Medicaid. If this consumer
“We believe this consumer protection legislation is a
disclosure law passed, both the state and the policy holder
win-win solution that will save taxpayer dollars while
would benefit. It’s pretty innovative. … It should be a
preserving the funding facilities need for care delivery and
win-win all the way around,”
maintaining a stable workforce,”
Florida Health Care Association
Executive Director, Ed Reed.
Rep. Jimmy Patronis (R-FL).
By 2014, twelve states had introduced consumer
disclosure legislation to educate policy owners about the
option to convert a life insurance policy to fund a Long
Term Care Benefit Plan and remain private pay. It also
endorses the Long Term Care Benefit Plan structure that
protects the funds and ensures they will only be used to
pay for long term care services in: California, Florida,
Kentucky, Louisiana, Maine, Maryland, Massachusetts,
New Jersey, New York, Pennsylvania, Texas, and
Washington. Texas was the first to enact this consumer
protection legislation into law in June, 2013 and
Kentucky enacted the measure in March, 2014.
Life Care Funding has worked with the National
Conference of Insurance Legislators (NCOIL), the Florida
Medicaid Department, the Florida and Texas Health Care
Associations, and AARP to provide important consumer
disclosure protections about this private pay funding
option. Since 2010, Life Care Funding has testified before
NCOIL, the state legislatures of Florida, Texas, Maine,
a special joint meeting of the New Jersey Medicaid and
Insurance Departments, and provided expert testimony
before legislative workgroups in Florida, Louisiana and
Maine.
Policy Conversion Bills introduced (as of 2014):
CA- SB 214
FL- HB 535 / SB 794
KY- HB 414 (enacted into law)
LA- HB 545
MA- SB1977
ME- LD 1092
www.IWantMyLTC.net
877-270-3127
MD- HB 846
NJ- AB 1075
NY- SB 5721 / AB 7952
PA- pending assignment
TX- HB 2383 (enacted into law)
WA- HB 2777
Life Care Funding was the first to pioneer the concept of converting a life insurance policy into a
Long Term Care Benefit Plan. Since the company’s inception in 2007, we have built a network of
agents, attorneys, and over 5,000 Homecare, Assisted Living and Nursing Home companies that
offer the Long Term Care Benefit policy conversion option to families directly across the United
States. Life Care Funding has been featured in the Wall Street Journal, New York Times, USA Today,
Woman’s World Magazine, Kiplinger’s, and numerous industry trade publications; on CBS, FOX,
PBS and Bloomberg TV and radio programs; speak at industry events across the country; and has
been the model for legislation specifically endorsing the Long Term Care Benefit Plan concept which
has been introduced in the state legislatures of CA, FL, KY, LA, MA, MD, ME, NJ, PA, WA and
passed into law in TX and KY.
www.IWantMyLTC.net
877-270-3127