In November of 2010, the National Council of Insurance Legislators (NCOIL) unanimously passed the Life Insurance Consumer Disclosure Model Act. This law requires an Insurance Company to notify the Consumer that their Life Insurance Policy can now be converted into payments for Long Term Care.
This is the first time in U.S. history that a law has been passed to require insurance agents to explain the fact that Life insurance policies may be converted into a vehicle to cover Long Term Care.
Now we have an alternative to:
1. Lapsing life insurance policies and getting nothing
2. Selling the family home to cover Long Term Care costs
3. Children paying the care costs for parents
4. Spending life savings to fund Long Term Care
To give a bit of background, this law passed in 2011 after Congressman Robert Damron, Democrat, KY, worked to move this forward for 6 years.
Congressman Damron, President of NCOIL, held a panel discussion to get the word out about this wonderful new consumer benefit at the Senior Market Advisor EXPO last August 25th in Las Vegas. A local Long Term Care Consultant of 30 years, David Kitaen CLTC, of Marin County, was asked to be on the panel as he was the first LTC Broker in the US to actually facilitate the Life Insurance Policy Conversion for one of his clients, a senior, living in Napa, CA.
Chris Orestis, a prominent figure in National Long Term Care Legislation, and Jayne Sallerson, of Emeritus Senior Living, one of the largest Long Term Care providers in the US, were also on the panel which discussed how this type of insurance conversion can help the growing group facing increasing costs for Senior Care and Housing.
The important conditions to make the Conversion are:
1. Must be 65 years or older
2. Must be receiving care at home or in a facility
3. Must have an “in force” Life Insurance Policy, not lapsed
4. Anywhere in US
When converted, the money is paid directly to the Health Care Provider.
To get started, contact a professional in the insurance industry to determine if you meet the requirements to qualify. The afore-mentioned expert, David Kitaen CLTC, may be contacted at 415.382.1300 with questions or to arrange a free consultation. His website also offers lots of valuable information about Long Term Care: www.davidkitaen.com.
About David Kitaen CLTC
David Kitaen CLTC is an Independent Long Term Care Insurance Broker/Advocate who has helped over 1800 Clients get Long Term Care Insurance over the last 25 years. He is a frequent Speaker on the subject of Long Term Care, and was a recent Guest Speaker with Congressman Robert Damron, Democrat KY, to announce this New LTC Legislation to the public. He was the first LTC Broker in the U.S. to complete a Conversion of Life Insurance to a Long Term Care Benefit in 2011, and has been influential in the development of the LTC Market from the very beginning of the Industry.