Life (Viatical) Settlements

​​LIFE (VIATICAL) SETTLEMENTS

Baby boomers are seeking ways to optimize the cash value for unwanted Life Insurance policies.  If they no longer need the coverage, or cannot afford the premiums, they may want to consider a life settlement.  A Life Settlement is the sale of a Life Insurance policy to an institutional money source for substantially more than its cash surrender value, but less than the face value.  By selling the policy, they can extract more value, rather than simply abandoning it.  A Life Settlement offers a way to eliminate high premiums and still retain value at your passing. The process takes about 60 – 90 days. The seller receives a lump sum payment. 

Policies that can be sold are: Joint Survivorship Universal Life (SUL), Term Policies Still Convertible to Universal Life, Whole Life Insurance, Most Group Life Insurance and Key-Man Life Insurance.​​

There are a number of factors that motivate people to sell their policies:

  • Your policy was purchased several years ago and is not performing as expected.
  • You want funds to purchase a more appropriate and cost-effective coverage, such as Long Term Care insurance or a Survivorship policy.
  • You have a life-limiting illness like cancer and need funds to pay for medical expenses.
  • You want funds to make a charitable donation and wish to see the donation put to use, or to establish a Charitable Remainder Trust.
  • Your Estate Planning needs have changed and coverage is no longer required.
  • Life Insurance that was purchased for business purposes is no longer needed.
  • Expensive premiums are impeding your ability to take care of basic living needs.
  • Your priorities have changed and you want to travel and enjoy retirement.
  • You would like to reduce your coverage by selling a portion of your death benefit.
  • You want to help your grandchildren pay off student loans.
  • You need money for medical expenses or to finance long-term care expenses.
  • You want to settle personal or business debts proactively.

 

 

If you Would Like More Information From Goss Associates About Life (Viatical) Settlements Please Fill Out The Form Below And We’ll Get Right Back To You

 

 

 

 

Long Term Care–Do you know all you need to know?

 

Long Term Care.   When those three words are spoken, what comes to mind?  Many make the common association with a nursing home.  Others mistakenly think that they are already covered for related long term care matters through their health insurance or disability income policies, or they think that the Government Medicare program will pay for this issue.

The Government has been clear that the only one that pays for Long Term Care is you.  The real question is “when” this issue presents itself to you–how much of your money will you want to use and how?  Notice we say “when” this issue occurs.  This is because 3 out of every 4 individuals over the age 65 will require some level of long term care in their lifetime.  The average cost of care ranges based on your living area but $300 a day is common.    As of now, the Government will generally step in and pay for long term care as part of the Medicaid program but only after you have spent down your assets on your care and you meet certain state specific income, asset and physical metrics established by the state you have residence in.  Said differently, you must be below poverty level standards before the government will assist you under the Medicaid program, and the venue where they will likely assist you under this program is a nursing home.  You are limited with choices of care facilities as some facilities are changing thier business model to only accept private pay members leaving the facilities who do still accept Medcaid as a form of payment to be overcrowded.

Health Insurance–whether it is your private health insurance or Medicare–is designed to help you get better and is utilized when there is an expectation of recovery, and they employ skilled care in order to do so.  Skilled care is delivered by highly trained professionals like Medical Doctors, Nurses and Physical Therapists and examples can include tube feeding and I.V.’s in an effort to help you get better.  Long Term Care uses what is commonly known as non-skilled care to assist you and help you get through the rigors of each day.  Non-skilled care is delivered by people that have less training than the folks delivering skilled care, and will routinely help you with the ADL’s (Activities of Daily Living) Eating, Bathing, Dressing, Toileting, Transferring, Continence.

Disability income policies generally protect your income for a time specific period.  Generally, this coverage ends when you are 65.

Long Term Care Insurance or some sort of Long Term Care hybrid policy could be the logical next step in your financial planning process.  This step will help you:

  • Protect your Financial Plan
  • Protect your portfolio, whether it is a retirement or non retirement account so that it can execute for the manner in which it’s intended.
  • Protect you income
  • Protect your family from becoming your Long Term Care Plan

Long Term Care is really a life event that happens to a person’s family and, if not protected properly with long term care planning–can also have adverse consequences to their financial plan, income and portfolio.  There is a variety of services and care available to someone that experiences Long Term Care.  This Long Term Care event can include not only nursing home but also assisted care living facilities, home health, adult day care and community based supporting services such as meals on wheels, senior centers and transportation services.  In short, a Long Term Care policy will provide an income stream to pay for care in the venue of your choosing along with the continuum of care, services and housing that you may require or need as a result of being on claim.

To talk about whether Long Term Care Planning is an appropriate next step for you, email andrea@gossassociates.com or contact us directly at 855-712-7683

 

 

 

Crowd Funding Should Not Be A Replacement For Life Insurance Here’s Why….

Friends and strangers who hear about a tragedy respond and donate what they can. Sometimes you’ll hear about communities rallying around a family in trouble and raising as much as $50,000. The fact is any amount raised over $10,000 is a tax reportable event, where as a life insurance benefit is paid tax free–.  More  often the average amount raised on a GoFundMe campaign is much closer to $2000, a far cry from covering the average funeral expense of $7000 to $10000.  In addition, GoFundMe is not a source of income replacement, there will be no funds for the family to maintain its standard of living, no funds to help cover the costs of college, etc.  A life insurance policy could have provided ALL of this and more. 

“No Life Insurance, Help Spouse”

The above headline is a real one from a GoFundMe page, set up by a woman whose husband died suddenly after zip lining during a vacation in Costa Rica. “He is still in Costa Rica, and I am arranging for his cremation with the U.S. Embassy and need to do a memorial service, etc., and there is no life insurance for my immediate needs.  ….I would be so grateful to receive funds so that I may cover the bills and our financial matters, which are large, as he was the main provider,” the wife says in her message.

As of January 22nd 64 people had contributed a total of $7,495 to this GoFundMe. This is nothing to sneeze at but it’s a far cry from the meaningful aid that would have been provided by having a life insurance policy. 

“Father Killed, Daughter Seriously Injured, Please Help”

How often do you hear on the local news about a tragic death where the family of the deceased is immediately thrust into financial hardship because there was no life insurance? A case in point was a story earlier this month about a car accident in Nebraska that killed a 44-year-old man who was the passenger, while the driver, his 21 year-old daughter, suffered serious injuries.  The family set up a GoFundMe page, which includes a touching letter detailing the hardships now facing the family. 

Don’t rely on the generosity of others to provide the necessities for your family. Life insurance comes in all shapes and sizes.  We at Goss Associates will help you find the right policy at a price that will fit your budget.

GOSS Associates can help you plan and prepare for life’s major events and to protect your loved ones in their time of need. Give us a call at 888 811-2592 and let’s get started! Or just click here

http://www.gossassociates.com/2016/02/09/crowd-funding-should-not-be-a-replacement-for-life-insurance/

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