FAQ Navigation
- Who can participate in the LifeBridge Benefits Plan?
- What is the LifeBridge Benefits Conversion option?
- Are there any restrictions concerning the forms of life insurance that can be converted?
- Are there any requirements regarding the size of the life insurance policy that will be converted?
- What is the enrollment procedure for the LifeBridge Benefits Plan?
- Will be I be charged a fee in applying for enrollment in the LifeBridge Benefits Plan?
- How long will the LifeBridge Benefits Plan enrollment process take?
- Should my LifeBridge Benefits Plan application be accepted, will I need to continue making premium payments?
- How do I know if the LifeBridge Benefit plan is right for me?
- Are the proceeds from the LifeBridge Benefit Conversion Plan taxable?
- How does enrolling in the LifeBridge Benefit plan effect my eligibility for Medicaid?
- What are the rights of a life insurance policy owner?
- Why Choose LifeBridge Benefits?
Who can participate in the LifeBridge Benefits Plan?
Owners of in-force life insurance policies of all forms that are interested in using their policy as an option to cover long-term care expenses.
What is the LifeBridge Benefits Conversion option?
The LifeBridge Benefit conversion option is a creative solution to fund long term health care for seniors. LifeBridge benefit simply converts an existing in-force life insurance policy and converts it to a long term health care benefit. The policy owner is no longer responsible for the monthly premiums and LifeBridge Benefits will then pay out the monthly payment to the facility. The monthly payments are usually paid to the service provider over a 12 to 30 month period, depending on the need of the family. A death benefit is preserved for the families use for end of life expenses. If the policy holder should die before the end of the benefit period, the balance of the LifeBridge Benefit then is paid out to the beneficiary.
Are there any restrictions concerning the forms of life insurance that can be converted?
No, all forms of life insurance can be used, including, among others:
- Whole Life
- Term Life
- Group Life
- Universal Life
- Variable Life
Are there any requirements regarding the size of the life insurance policy that will be converted?
There is no minimum or maximum requirement for the LifeBridge Benefits Plan.
What is the enrollment procedure for the LifeBridge Benefits Plan?
The enrollment procedure is rather quick and simple, and do not worry, one of our professional LifeBridge Benefit team members will guide you through the entire process:
- Complete the LifeBridge Benefit application by either filling it out on-line or calling one of our friendly patient coordinators at (855)282-0883
- Supply a copy of the life insurance policy to be converted or a policy release form
- Complete the medical history form as well as the medical release form
- Once the application has been approved you will receive your proposed benefit amount
- Complete the benefit enrollment forms
- Prescribe payment amount to the long-term care provider
Will be I be charged a fee in applying for enrollment in the LifeBridge Benefits Plan?
No, LifeBridge Benefits does not charge fees when you submit the enrollment applications and there is no obligation once you have applied.
How long will the LifeBridge Benefits Plan enrollment process take?
Since timeliness is an utmost concern for seniors and their family members dealing with long-term care uncertainties, the enrollment process of the LifeBridge Benefits Plan is arranged to be rapid, straightforward, and capable of being concluded in thirty (30) to sixty (60) days. A LifeBridge Benefit Patient Coordinator will be assigned to the case and walk the policy holder and family thru the entire process as well as updating the family and facility on the progress.
Should my LifeBridge Benefits Plan application be accepted, will I need to continue making premium payments?
If accepted, these payments will no longer be your obligation
How do I know if the LifeBridge Benefit plan is right for me?
The LifeBridge Benefit is a perfect solution for seniors who can no longer afford their life insurance policy, or is spending down assets to qualify for Medicaid and is considering letting the policy lapse or surrendering it for the remaining cash value.
Are the proceeds from the LifeBridge Benefit Conversion Plan taxable?
Yes, the proceeds from a LifeBridge Benefit plan can be taxable. It is always important for the policy owner to seek professional tax advice before accepting any offers. The taxable proceeds are generally based on the difference between the money paid in, the cash surrender value and the final settlement amount received by the policy holder.
How does enrolling in the LifeBridge Benefit plan effect my eligibility for Medicaid?
A life insurance policy is a legally recognized asset of the policy owner and it counts against them when trying to qualify for Medicaid assistance. If a policy has more than a minimal cash value of $2,000 it must be liquidated and spent towards the cost of care before the policy owner can qualify for assistance. All Medicaid applications clearly ask if the applicant as an in-force life insurance policy. Failure to disclose this information is considered fraud. Because Medicaid budgets are facing pressure asset recovery efforts have become quite aggressive. Medicaid Recovery units have become very forceful about researching for life insurance policy death benefits that have been paid out to families after the death of a Medicaid recipient. It is important to know your rights and options as a policy owner:
- A policy with more than a minimal amount of cash value of $1,500 or more, depending on the state of the policy holder, must be liquated with proceeds from the policy spent on care
- Many states will exempt a final expense policy if the complete death benefit value is assigned to a funeral home
- A policy that does not contain a cash value does not need to be liquidated but the death benefit will be subject to Medicaid recovery efforts to refund the amount of money spent on medical care
- Transferring a life insurance policy for less than its fair market value is a violation of asset transfer rules if it takes place within the 5 year look back period
- A policy owner has the legal right to convert a life insurance policy into a long term care benefit plan at its fair market value. This allows the “spend down” period to be extended covering the cost of care while keeping a portion of the benefit for end of life expenses.
It is important for all policy owners to know their rights as each state’s Medicaid regulations and requirements differ. Consulting a financial advisor or your local Medicaid office is strongly recommended to make sure that as a policy holder you know your rights.
What are the rights of a life insurance policy owner?
It is important to know your legal rights as a policy owner. A life insurance policy is legally protected as a personal property and the policy holder as the guaranteed right to convert or transfer their ownership interest in a life insurance policy without limitations.
All policy owners have the right to:
- Borrow against the existing policy
- Sell the policy to another party
- Name a beneficiary for the policy
- Change the beneficiary at anytime
- Convert the policy to a new form of benefit
- List the policy as collateral for a loan
Why Choose LifeBridge Benefits?
LifeBridge Benefits is a simple, creative solution for seniors to fund their long term health care. Some of the key Benefits of the program are:
- Simple, quick application and approval process
- No age or policy size minimum
- Most all types of in-force life insurance qualify
- The policy holder is no longer responsible for premium payments
- Monthly fixed payments are paid directly to the long term care provider
- Preserves death benefit
- The program is flexible allowing seniors and their families to how the benefit is spent. For example by increasing the death benefit preserved or spending most of it on long care services
- Benefit can be adjusted to match the changing needs of the senior
- A variety of long term care facilities qualify such as Skilled Nursing Facilities, Assisted Living Communities, Home Health Care, and Hospice.