The past four years have seen a growing public awareness that life #insurance is an asset policy owners can use to pay for long-term care. Home health care companies, assisted living communities, nursing homes and geriatric care providers have been on the front lines of this issue, educating seniors about the availability of this option.
The National Council of Insurance Legislators’ (NCOIL) 2010 model disclosure law became the basis for legislation to ensure that policy owners are informed of their legal rights to “convert a life #insurance policy into a long-term care benefit plan.” This legislation has been spreading across the nation. The concept that seniors can sell a life insurance policy they already own in order to fund a dedicated benefit plan that will keep them off Medicaid has proven too powerful for state governments to ignore.
Now the federal government is paying attention as well. The Congressional Commission on Long-Term Care has studied this option as part of its deliberations. In addition, #medicare has posted a page to its website
(www.Medicare.gov) to inform people that, “You might be able to sell the life insurance policy for present value. The money from the sale can be used to pay for your long-term care needs. If you don’t qualify for long-term care insurance, this may be an option to pay for your long-term care needs.”
In 2013, nine states (California, Florida, Kentucky, Louisiana, Maine, Massachusetts, New Jersey, New York and Texas) introduced Medicaid life settlement legislation as a way to encourage greater use of private-pay dollars for home care, assisted living and skilled nursing through the conversion of a life insurance policy into a long-term care benefit plan. Among these states, Texas was the first in the nation to enact this into law.
Curated from insurancenewsnetmagazine.com