It's no top secret that funding long-term care is becoming an enormous problem for America.
Although 70% of Us citizens older than 65 are likely to need long-term care sooner or later throughout their lives, only about one in ten own long-term care insurance which cash only about 4% of long-term good care expenditures. At exactly the same time, fewer and fewer companies are writing traditional long-term health care insurance, and the price tag on long-term care insurance keeps increasing.
Medicare and private medical health insurance provide little coverage for long-term care and attention. Medicaid (which is co-funded by the claims and the government) ultimately pays for almost all long-term care expenditures in this country, but to qualify for Medicaid one must fundamentally go broke. And in addition, spending money on long-term treatment is Medicaid's one largest expense. And the costs can only develop as the infant boomers age.
A new notice might advise consumers considering insurance plan changes to get professional advice.
It had been with this background that the Long-Term Treatment Improvements Subgroup of the Country wide Connection of Insurance Commissioners (NAIC) recently adopted a study which examined the state of long-term attention in this country. The subgroup concluded that one of the viable options to privately fund long-term health care costs could be a life arrangement. Yes, sometimes money produced from a Sell Your Life Insurance coverage provides more benefit as the insured is alive than after loss of life.
This comes as no surprise to us, as we've written often that, although generally a last vacation resort, a life settlement deal can make a meaningful difference to someone needing to pay for long-term care expenditures. Not merely can a life settlement provide much-needed cash, but a private-paying long-term good care patient has many more good care options and a wider choice of facilities than someone on Medicaid.
What does come as a nice surprise to us is the acknowledgement by the NAIC that life settlements can have merit. The NAIC's model life pay out act is generally unfriendly to the life arrangement industry and shows the inexplicable bias against life settlements by some of the large life insurance coverage carriers. Fortunately, realizing this bias, relatively few says have used the NAIC model. To become consistent with what the vast majority of states have followed and the long-term attention study's finish about life settlements, the NAIC should now revisit its model act to make it more workable and less antagonistic towards life settlements.
Producers are frequently asked by clients to look for long-term care and attention insurance only following the client's health has deteriorated and they no longer be eligible. Such a customer is actually a potential potential customer for a life settlement in the foreseeable future. Consistent with the NAIC's review, when a client is declined for long-term good care insurance, a maker should apprise your client a life arrangement could be an option to fund long-term good care, if the need arises.