For many seniors, the skyrocketing cost of long-term care has reached a crisis level.
There may be help coming for them in a bill making its way through Congress. H.R. 7203, introduced by U.S. Rep. Kenny Marchant (R-TX) and U.S. Rep. Brian Higgins (D-NY). The bill would for the first time permit seniors, regardless of their health status, to use life insurance policies they already own to fund a wide range of health care costs, including long-term care expenses and long-term care insurance premiums, tax free.
It is called a Long-Term Care Account funded by a tax-free life settlement, and it is being considered as a private pay solution to the public policy problem of sky-high post-retirement costs. The bill could reduce the financial burden on seniors and their loved ones while saving taxpayers as much as $2 billion in Medicaid funds that would have been used to pay for many of the services over next nine years, according to the Alliance for Senior Health Care Financing.
See what the insurance industry is saying below:
- Broker World: http://www.brokerworldmag.com/articles/articles.php?articleid=4634
- Insurance Forums: https://insurance-forums.com/life-insurance/life-settlements/federal-legislation-allowing-seniors-to-use-life-insurance-proceeds-for-long-term-care-costs-tax-free-introduced-in-congress/
- Insurance News Net: https://insurancenewsnet.com/innarticle/bill-would-allow-life-insurance-policies-to-fund-health-care-needs
- NewsMax Finance: https://www.newsmax.com/finance/chrisorestis/seniors-life-insurance-long/2019/01/02/id/896573/
- IRIS: https://www.iris.xyz/learn/investing-in-life/congress-considers-using-life-insurance-policies