Discussions:101,499. |. Messages:1,352,505. |. Members:85,225


Life settlements: A new way to pay for long-term care

Phyllis Shelton

I think by now most people understand a life settlement as the sale of a person’s life insurance policy to a third-party investor. In a life settlement, the policy owner transfers the ownership of that policy in exchange for an immediate cash payment from the buyer. I’ve handled this type of transaction and although it netted the policy owner about $300,000, the process was so painful that I wrote everything I learned and presented it at AALTCI and incorporated it into my latest book.

Well, there’s a different way to do a life settlement that isn’t an immediate cash payment. Instead, it puts the money into a benefit account so that claims can be filed against it for long-term care services, with any unused amount going to a beneficiary. All distributions are tax-free, unlike the immediate cash payment kind of life settlement that can have a tax ramification if the policyholder receives more than the amount paid in premiums.

To learn about this new way of doing a life settlement, I’m inviting you to register for a complimentary webinar, “How to use life insurance to pay for long-term care,” taught by Chris Orestis with Life Care Funding on either March 31 or April 2 at 4 p.m. EDT. I’ll be moderating and perhaps throwing in a comment or two, but Chris will be delivering most of the information. He is very good and I believe you will learn a lot.

Today’s agents are looking for every available long-term care planning tool to help families and to bring new revenue streams into their practice. Converting life insurance policies into a tax-free Long Term Care Benefit Plan is an excellent tool for agents to add to their tool boxes, and an important option for families seeking funding sources to address immediate need for care.

In this session, you will listen to real world case studies of how agents helped families convert an unneeded life insurance policy into a Long Term Care Benefit Plan. We will also review the nuts and bolts of how the benefit works, new disclosure laws and legal liabilities every agent must know about, and we will review some simple questions to ask clients and 5 easy steps to bring this program into your practice.

Register now for one of the two sessions:


• Tuesday, March 31 at 4pm EST

• Thursday, April 2 at 4pm EST

About Life Care Funding: Founded in 2007, 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, they have built a national network of agents, attorneys, and advisors as well as 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.

Chris Orestis, CEO of Life Care Funding, is an 18-year veteran of both the insurance and long-term care industries. A former Washington DC lobbyist, he is a nationally known senior care advocate and author of the Amazon best-seller book “Help on the Way”, a legislative expert, featured speaker, columnist and contributor to a number of insurance and long term care industry publications. Chris is a frequent guest about senior issues on national radio programs; and has also been featured in the Wall Street Journal, New York Times, USA Today, Fox Business News, and PBS. His blog on senior living issues can be found at www.lifecarefunding.com. He can be reached at 888-670-7773 x 6623 or [email protected].

Phyllis Shelton is the President of LTC Consultants, a Nashville-based company that she founded in 1991 specializing in long-term care insurance sales training, consumer education and marketing materials. She is widely considered to be the leading long-term care insurance sales trainer in the country. Phyllis’ organization has trained nearly 75,000 agents via live or web-based training and her company has conducted training programs for many of the top LTCI insurance carriers. Her business model has also included assisting states with an educational outreach about the Long-Term Care Partnership, a new program that shelters assets from Medicaid spend down equal to the benefits paid by Partnership long-term care insurance policies.



Leave a Comment