As an advisor to caregivers, I have encountered many caregivers whose parents or loved ones do not have sufficient funds for their long term care.  This can put not only the senior in danger, but the rest of the family as well. 

Two new(ish) ways to alleviate monetary insufficiencies are reverse home mortgages and life settlements.  While these are not the most preferable ways of funding what should be the “resting years” of our lives, they are an alternative that can work when there are no other options.

We are going to be discussing life settlements in this month’s coaching call so I asked Jerry Iwanski if he would write an article for our readers as he is an expert in the field of life settlements and can explain it better than I.

Life Settlements: An Introduction

By Jerry Iwanski – Alternative Senior Financing

As you may know, most seniors need more money to live comfortably through their golden years. This is especially true when faced with unforeseen expenses such as assisted living and long-term care. The urgency of finding a significant amount of money quickly exacerbates an already stressful, emotional situation. For these seniors, the options can be bleak. The answer, a Life Settlement.

A life settlement is a powerful financial tool that allows you to convert your life insurance policy into cash. In a typical scenario, a bank or financial institution will purchase the policy, become the owner and beneficiary, and take over the premium payments. You are released from any obligations and are free to use your settlement money for anything you like.

 Why has this become a popular solution?

People are living longer and want to do more during retirement. They have seen their net worth decrease in this current economic recession. A Life Settlement gives you the option to choose.  Choose to take that dream vacation, send your grand kids to school, pay for Long Term Care or Assisted Living.

Many people find that as they reach retirement age, pay off their mortgage or see their children through college, their life insurance has served its primary purpose - to protect loved ones and assets — and is no longer useful. It effectively becomes a “dormant asset.” At this point, the expensive premiums are being directed toward an investment that is under-performing. Freeing up the money and eliminating the premiums creates greater financial freedom and new options for you and your family.

A POWERFUL FUNDING OPTION FOR SENIOR LIVING AND HEALTHCARE

Life settlements provide an excellent opportunity to help you enjoy assisted living without financial pressures. With a life settlement, you can obtain the funds you need to finance your senior living and long-term care expenses.

TAP INTO THE FINANCIAL POWER OF AN “OVERLOOKED” ASSET

Many people don’t think of their life insurance as an asset. Once they secure coverage, they often pay the premiums and give little thought to the policy as an investment. It assumes an invisible role in their financial portfolio or is regarded as an expense that must be kept up. But by the time you near retirement, your policy has become a solid asset with years of equity. It’s money you can use today.

Who Qualifies for a Life Settlement?

The typical age to do a Life Settlement is 65 years and up. Depending on some circumstances the age can be lower. The types of life insurance policies that can be sold are term as long as they are renewable or  convertible, whole life, universal, joint survivorship. The policy must have been in place for at least two years. The typical minimum death benefit is $100,000 but again, depending on some circumstances it can be lower.

The Process

It typically takes about 4 to 6 weeks to complete the process.  Paperwork must be completed by the policy owner and the insurance company. While no medical exam is required a brief medical history is needed and sometimes medical records must be requested. The policy is “auctioned” to several investors and they make offers based on the information.  The offers are then presented to the policy owner, where they either agree or decline the offer. Once the policy owner agrees, money is deposited into an escrow account. When all paperwork is completed and signed, the money is transferred into your account.

What’s next?

Too few people know about the life settlement option. I hear from families every day who have let a policy lapse, or are about too, and they lose out on their opportunity to receive money that could help their loved ones during a time of crisis. Before you let your policy lapse or surrender it, check into a Life Settlement to see how much your policy is worth. There are no out of pocket fees to do a Life Settlement and there is no obligation to continue even after you find out what you can get for your policy. So you have nothing to lose.

If you would like to see if you qualify or get more information please contact Jerry Iwanski at                720-271-3729 or jerry@alternativeseniorfinancing.com. You can also visit www.alternativeseniorfinancing.com

About the Author

Jerry Iwanski has over 3 years of experience working with Seniors in the Insurance and Financial Services Industry. As a  Life Settlement Advisor he offers Seniors an alternate funding option for housing, health care, other investments, new life insurance policy and charitable giving. He is licensed in Life, Health, Property and Casualty and Annuities. He is also a Colorado Certified Long Term Care Advisor.

Usually, the care provided is as good as it can be given the circumstances, but sometimes the care is less than adequate or can even be full of neglect and abuse.  When we see signs of possible neglect or abuse, we wonder how we can deal with it and not create a bad relationship with the staff of the facility thereby subjecting our loved one to even more punishment. 

If the abuse is blatant, it’s an easy call……..get the loved one out of the facility and have charges filed.  But when you simply have a suspicion, a niggling fear that something is not quite right, it’s hard to know what to do.

That is the time to call in a long-term care ombudsman.

A long-term care ombudsman is an official advocate for residents of long-term care facilities.  Under the Federal Older Americans Act, every state must have an ombudsman program.  This program consists of both volunteer and paid members.

Their goals are to provide information on how to find a facility that provides quality long-term care, to assist with complaints and resolve problems in such facilities, to educate both consumers and long-term care providers on patient’s rights, legislative policy, and ways that families and providers can work together.  They also provide community involvement through their volunteer programs. 

When working with patients or patient’s family member regarding a complaint, all information is kept confidential, unless the patient or family requests otherwise.

Problems that they address are violations of resident’s rights or dignity, physical, verbal or mental abuse, deprivation of services or poor quality of care (for example, lack of hygenic care, not turning the resident to prevent bedsores, etc.), unreasonable confinement, improper transfer or discharge of patient (when money runs out, etc.), and use of chemical or physical restraints that are in appropriate.

According to The National Long Term Care Ombudsman Resource Center, the rights of long-term care residents are as follows:

• The right of citizenship. Nursing home residents do not lose any of their rights of citizenship, including the right to vote, to religious freedom and to associate with whom they choose.
• The right to dignity. Residents of nursing homes are honored guests and have the right to be so treated.
• The right to privacy. Nursing home residents have the right to privacy whenever possible, including the right to privacy with their spouse, the right to have their medical and personal records treated in confidence, and the right to private, uncensored communication.
• The right to personal property. Nursing home residents have the right to possess and use personal property and to manage their financial affairs.
• The right to information. Nursing home residents have the right to information, including the regulations of the home and the costs for services rendered. They also have the right to participate in decisions about any treatment, including the right to refuse treatment.
• The right of freedom. Nursing home residents have the right to be free from mental or physical abuse and from physical or chemical restraint unless ordered by their physician.
• The right to care. Residents have the right to equal care, treatment and services provided by the facility without discrimination.
• The right of residence. Nursing home residents have the right to live at the home unless they violate publicized regulations. They may not be discharged without timely and proper notification to both the resident and the family or guardian.
• The right of expression. Nursing home residents have the right to exercise their rights, including the right to file complaints and grievances without fear or reprisal.

If you feel that your loved one has been denied any of these rights in the facility in which they are residing, don’t hesitate to contact a long-term care ombudsman in your state.  Call 1-800-300-6222 or check The National Long Term Care Ombudsman Resource Center to find resources in your state.

Nursing homes are even more expensive, with a price tag of $7000.00 per month in Idaho.  Let it be known that this is a daily worry for me.  What if my father falls and breaks a hip?  What if he has a stroke.  Let’s look at the options.

There are basically 4 ways to pay for long term care:
1. Private funds 
2.  Insurances
     a. Medicare
     b. Supplemental Policies
     c. Long Term Care Policies
3.  Veteran’s Administration Funds
4.  Medicaid