The National Association of Insurance Commissioners’ (NAIC) Long-Term Care Innovation Subgroup has endorsed exchanging life insurance policies for long-term care, a concept pioneered by GWG Life and now being offered exclusively to consumers across American through the company’s LifeCare Xchange program.
LifeCare Xchange (lcx.gwglife.com) is the only tax-free long-term care benefit available for seniors today. In June, GWG Life partnered with insurers Broadtower Insurance, Peloton Global and Long-Term Care Resources to promote the program as a way to help address the long-term care needs of aging Americans. GWG Life specifically designed the LifeCare Xchange in response to the issue of Americans’ failure to plan for the cost of long-term care, one of the most potentially devastating financial challenges families are facing.
In the NAIC group’s report issued July 19 it cited a GWG Life presentation about long-term care that recommended life settlements as a “tremendous value to seniors who are going to lapse or surrender their life insurance policies.”
The subgroup’s report included other insurance and annuity products as a way to pay for long-term care. Selling life insurance on the secondary market was the only option that did not require consumers pay additional sums out of pocket in order to receive a benefit.
Here’s a link to the subgroup’s report: