2008-08-18 00:00:00 -
via:
www.lifecarefunding.com
originally published (July 30, 2008) Emeritus Senior Living and Life Care Funding Group (LCFG) announced that they will jointly offer Life Settlements as an alternative funding vehicle for seniors moving into Emeritus properties. A Life Settlement is the sale of a life insurance policy by the policy holder while still alive; to an institutional investor that will pay a lot more for the policy than the cash “surrender” value. The institutional investor will then carry the policy as an investment for the remaining life span of the policy owner.
For example, the cash “surrender” value paid to a policy owner by an insurance company may range in value 2%-5% of the face amount, or death benefit, whereas a Life Settlement could yield 20%-60% of a policy’s value. All forms of life insurance are eligible, and the typical minimum age of a policy owner is 65.
“We have talked to seniors who would like to move in, but they are a little hesitant, hoping the market will turn around,” said Debbie Howard, a Vice President of Sales and Marketing with Emeritus Senior Living. “Our goal is to support our residents and make it easy for new residents to move in. We think a Life Settlement makes a lot of sense for all involved.”
A Life Settlement is an alternative funding option that will allow anyone considering senior housing and/or care to not have to use their home, savings or family member’s financial support as their first choice to raise money. Emeritus is now able to offer Life Settlements as a “funding bridge” so that people can move forward securing the best and most appropriate circumstances to meet their needs without worrying about liquidating dearly held and/or underperforming assets. Based on the size of a life insurance policy and the amount derived through a Life Settlement, it is also possible that they could live indefinitely on those funds without needing to encumber or liquidate other components of their estate.
“In the face of falling home and stock values, rising inflation, and depleted savings, many people we are meeting with are taking a close look at the Life Settlement option because it helps a family preserve long-held assets, such as a home, until it is more convenient to sell. It is not complicated with transactions often completed in 30 to 60 days,” explains Chris Orestis, principal, Life Care Funding Group, a firm that specializes in insurance matters and Life Settlements. “With billions of dollars worth of life insurance owned by people older than 65 today; tapping into Life Settlements as an alternative funding option for senior housing and care is gaining serious interest.”
For more information about Emeritus Senior Living visit www.emeritus.com and to learn more about Life Settlements visit www.lifecarefunding.com.
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