Life Settlements: Getting Cash From Your Insurance Policy. Good or Bad Choice?

Did you know that you can get a lot of cash for selling your life insurance policy? It sounds to good to be true doesn't it?

Well like anything else in the financial market for Seniors there are good and not so good aspects to it. There is a good article on the Financial & Tax Fraud Education Associates blog that goes through many of the details.

In a nutshell, it works like this:

1. Let's say you're 72 years old with a $1M life policy that is current.
2. You are also almost out of cash and facing very high costs associated with in-home care or nursing home care

What are your options?

1. The financial markets have created one for you!
2. They will buy your $1M life insurance policy for , say, $200k (plus or minus depending on the actuarial tables) and continue paying the premiums for you!
3. You get the cash and name them the beneficiary of the policy

Does this make sense? It could in some cases. Depending on how long the senior actually lives will determine if the "Investor" or the Senior actually comes out ahead. The definite loser could be the Senior's heirs however.

If the heirs were well informed it might make good sense for them to "purchase" the policy from the senior by paying for the senior's care needs going forward in exchange for being named beneficiary. Just my opinion though.

Read the article and discuss with your financial advisor as this is just another tool in your financial toolbelt.

LoveToKnow Seniors interview with Senior Helper’s CEO Peter Ross

Many seniors desire to live independently, even if they may need assistance with daily care, and Senior Helpers is designed to fulfill that wish. Founded in 2001, this professional in-home senior care company provides a number of services to help seniors and their caregivers.

LoveToKnow Seniors spoke with Senior Helper’s CEO Peter Ross about the concerns of seniors, and how in-home care can be a benefit to the family.
Senior Helper Interview

• What are seniors’ biggest concerns regarding independent living?

Safety is far and away the biggest issue facing seniors living independently, and it’s also one of the main concerns for families in charge of caring for or providing care for their elderly loved ones.

Good Article about our organization -Senior Helpers. Read the whole article.

Veterans Benefit That Helps Pay For In-Home Care

A benefit is available to most veterans and their surviving spouses that can pay for a large portion of in-home care. This little known benefit, called Special Monthly Pension, can provide up to $1,949 a month in assistance for care in the home, assisted living facility or nursing home.

Qualification for this Special Pension Benefit is straightforward. The veteran or their surviving spouse must:

· Be age 65 or older
· Have served 1 day during a defined period of war
· Received an honorable discharge
· Meet income and asset requirements
· Surviving spouse must have been married to veteran at time of passing

Most people have never heard of this benefit, but don’t let that discourage you. It is estimated that over 75% of the 2.5 million veterans who are eligible are not aware of the existence of this Special Pension. It is important that the veteran or responsible family member work with a competent and qualified individual or firm to fill out the appropriate documents that are necessary for approval.

Some people believe that they earn too much or possess too many assets to qualify. However, the important calculation is how much is left after deducting for all medical and care expenses. An experienced individual or agency can assist you in determining if you are qualified for this benefit.

And best of all – It’s Free!

Call us and we can answer any questions and help guide you through the paperwork. 512-388-4357.

35 More Secrets the ER Staff Won't Tell You

Another good article from Reader's Digest and a follow-up to my earlier post "15 Secrets the ER Staff Won't Tell You".

15 Secrets the Emergency Room Staff Won't Tell You

Great advice from Reader's Digest

Life-saving Cardiac Scans

Technology is helping doctors take a 3-D look at the hearts of possible heart attack victims

Be Aware of the Dangers of Joint Accounts

Many people believe that joint accounts are a good way to avoid probate and transfer money to loved ones, and such accounts are sometimes referred to as "the common person's estate plan." But while joint accounts can be useful in certain circumstances, they can have dire consequences if not used properly. Adding a loved one to a bank account can affect Medicaid planning as well as expose your account to the loved one's creditors.

When a person applies for Medicaid long-term care coverage, the state looks at the applicant's assets to see if the applicant qualifies for assistance. While a joint account may have two names on it, most states assume the applicant owns the entire amount in the account regardless of who contributed money to the account. If your name is on a joint account and you enter a nursing home, the state will assume the assets in the account belong to you unless you can prove that you did not contribute to it.

In addition, if you are a joint owner of a bank account and you or the other owner transfers assets out of the account, this can be considered an improper transfer of assets for Medicaid purposes. This means that either one of you could be ineligible for Medicaid for a period of time, depending on the amount of money in the account. The same thing happens if a joint owner is removed from a bank account.

For example, if your spouse enters a nursing home and you remove her name from the joint bank account, it will be considered an improper transfer of assets.
Another problem with joint accounts is that the account is vulnerable to all the account owner's creditors. For example, suppose you add your daughter to your bank account. If she falls behind on credit card debt and gets sued, the credit card company can use the money in the joint account to pay off your daughter's debt.

Finally, you need to be sure you can trust the joint account holder because he or she will have full access to the account. Either account owner can take money out of the account regardless of who contributed to the account.

There are better ways to conduct estate planning and plan for disability. A power of attorney may ensure family members have access to your finances in the case of your disability. If you are seeking to transfer assets and avoid probate, a trust may make better sense. To learn more, talk to an elder law attorney.

Why Do We Stiffen Up as We Age?

No single factor explains such stiffness, said Dr. Mark S. Lachs, director of the Center for Aging Research and Clinical Care at the Weill Medical College of Cornell University. “Morning stiffness should not necessarily be ascribed to ‘normal aging,’ as it could be a symptom of treatable conditions that become more prevalent as we get older,” Dr. Lachs said.

Yet, he said, age-related changes in joint cartilage, combined with a decrease in the amount of lubricating joint fluid it produces in conditions like osteoarthritis, do probably contribute to stiffness. With sitting or sleeping, joint fluid is less evenly distributed in the joint space.

On resuming activity, the cartilage surfaces at first rub against each other without ideal lubrication. As activity continues and lubrication improves, the structures glide with less friction. An analogy is applying a drop of oil to a stubborn gate and then opening and closing it until it stops squeaking, Dr. Lachs said.

Another factor is changes in bone architecture with age. In infancy, supporting structures like ligaments, tendons and the muscles attached to them are relaxed and flexible, but tend to become less so with age, he said. Sitting for long periods keeps such structures maximally contracted, but as the day wears on, the stretching associated with normal activity or exercise can provide some relief.

Patterns of stiffness in specific joints at specific times of day can be clues to certain rheumatologic conditions, Dr. Lachs said, and should be brought to the attention of a doctor.

From the NY Times.

FINDING HOME CARE FOR ILL OR AGING PARENTS

There are many different types of home care services, and they vary according to the care-receiver=s needs.  The more complex the problem, the more highly trained the caregiver must be, and the higher the cost.  The average cost per visit for a home care nurse today is more than $120; the average cost per visit for a home health aide is more than $60.

Good article on the ImagineAge Blog

FINDING HOME CARE FOR ILL OR AGING PARENTS

Study: Cell Phones May Prevent Brain-Wasting Effects of Alzheimer's

A study in mice suggests using cellphones may help prevent some of the brain-wasting effects of Alzheimer's disease, U.S. researchers said on Wednesday.

After long-term exposure to electromagnetic waves such as those used in cell phones, mice genetically altered to develop Alzheimer's performed as well on memory and thinking skill tests as healthy mice, the researchers wrote in the Journal of Alzheimer's Disease.

The results were a major surprise and open the possibility of developing a noninvasive, drug-free treatment for Alzheimer's, said lead author Gary Arendash of the University of South Florida. He said he had expected cell phone exposure to increase the effects of dementia.