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By Susan B. Geffen

Now, for my article...

This falls under the heading of "I put my money where my mouth is." For the second time his year, my husband and I have subjected ourselves to needles and urine cups and seemingly endless questions about our health history and habits, for the sake of our children and each other. "When is the last time you used tobacco?" Of course, being an attorney, I needed to understand what he meant by the term "use." If you mean dabbled in, that would be college. If you mean used, like specifically went to the store and bought a pack of ciggs, the answer is never.

Yes, I feel sorry for the technicians who have to come out to our home, but it feels very invasive. If it were not for our desire to make sure that there are adequate resources for our kids and each other, we would not have endured this. However, we needed to increase our long term care insurance coverage and our term life policies. We had originally purchased term life policies in our late 30's when our kids were very little. Now, it is abundantly clear that if one or both of us perished our current limits would be exhausted by this expensive world we live in called California. 

 
There is another reason why we revisited the issue of increasing our term life limits and coverage. I recently went to an elder law symposium at which a speaker from a life care funding company spoke. At first I was like most everyone hearing a sales pitch from an insurance company. I was leery. Bringing this product to your attention is also a big deal because I never want to steer anyone wrong. However, after due diligence and truly coming to understand the product, you will see why its existence was partially responsible for our decision to increase our term limits (although all types of insurance can be converted). I also feel compelled to discuss it as many older adults drop life insurance policies that they have paid on for years because they have grown children and are on a fixed budget. This product seems like an opportunity to at least get some value from that asset. 

Here is how it works.  The "Long Term Care Benefit Plan" converts an in-force life insurance policy into a pre-funded, irrevocable Benefit Account. The Account is professionally administered and tax-free payments to a long term care provider (such as in home care, assisted living, memory care, skilled nursing and hospice) are made monthly on behalf of the individual receiving care.

It is a unique financial option for seniors because all health conditions are accepted, and there are no wait periods, no care limitations, no costs to apply, no requirement to be terminally ill, and there are no premium payments or fees. 

The conversion value of a life policy to fund the Long Term Care Benefit Account is based on an actuarial calculation that factors the face amount (death benefit) of the life insurance policy, annual premium payments and the health care needs of the applicant. Once the conversion value is determined and the enrollment is complete, expenses will be paid monthly to the appropriate health care provider.

There are no application fees and no obligations to apply. Once a policy is converted by the owner, the Long Term Care Benefit payments begin immediately and the enrollee is relieved of any responsibility to pay any more premiums. Enrollment can be completed in less than 30 days.

Should the enrollee pass away with additional funds remaining in their Benefit Account, the remaining balance is paid to the enrollee's named account beneficiaries. Enrollees and/or their beneficiaries are assured to receive the full Benefit amount even if the client dies before all monthly payments have been made.

Hopefully, if we ever need long term care and our coverage is not cutting it, we will be able to use this product. Please feel free to research this on your own and if you find something out that you feel I should know I would greatly appreciate your input. 

Good luck.

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