The Life Insurance Settlement Association (LISA), American’s largest and oldest organization that represents companies in the life settlement industry, has endorsed the bipartisan bill. The legislation was introduced by Florida Republican Representative, Gregory Steube and New York Democratic Representative Brian Higgins. The bill is geared to help seniors fund their health care costs TAX-FREE through the sale of their life insurance policies. As it stands, the proceeds from the sale of life insurance policies are fully taxable unless the seller is already seriously ill.
Upon passage of the legislation, seniors will be able to roll the proceeds from the sale of their life insurance policies into Senior Heath Planning Accounts TAX-FREE. The accounts will remain federal income TAX-FREE to pay health care costs for their spouses and themselves. The proposed Senior Health Planning Accounts will also provide seniors the ability to plan for future health care expenses TAX-FREE while they are currently healthy.
Chris Conway, Chair of LISA’s Board of Directors stated, “We applaud Representatives Higgins and Steube for creating a way for American seniors to deal with the crushing costs of health care in retirement.” Michael Freedman, Chair of LISA’s Public Policy Council added, “H.R. 5958 will allow millions of seniors to use life insurance assets they already own to help provide for their own health care in retirement.”
As most financial advisors know, life insurance is the foundation of any financial plan. With an excess of 138 million individual life insurance policies in force in America and a total face value that exceeds $12 trillion, the market for Senior Life Settlements has never been larger. The passage of H.R. 5958, the Senior Health Planning Account Act, would certainly make Senior Life Settlements even more attractive to seniors and it would provide a boon to financial advisors.
As financial advisors already know, seniors receive more cash when they settle their policies than they would by simply surrendering them. By adding the ability for healthy seniors to settle their policies and fund future health care expenses on a TAX-FREE basis there has never been a better time to speak with new and existing clients about Senior Life Settlements.
The National Association of Insurance Commissioners (NAIC) has already endorsed Senior Life Settlements as “One option seniors might use to generate resources to pay for their long-term care needs.” As soon as H.R. 5958 passes, we can expect more endorsements to follow.
When he called on Congress to adopt H.R. 5958, LISA’s Executive Director, Bryan Nicholson stated, “The Senior Health Planning Account Act will increase awareness that life insurance policies are an asset that seniors don’t have to lapse or surrender back to insurance companies. Life settlement proceeds will provide billions of dollars of living benefits for seniors to use for their own health care.”
For more information on the SENIOR HEALTH PLANNING ACCOUNT ACT as well as how Senior Life Settlements provide more options for your clients, call West Coast Settlements at (657) 254-4300 or send an email to email@example.com.