Austin, TX (PRWEB) June 27, 2013
Texas residents applying for Medicaid long-term care have more options with the recent passage of state House Bill 2383. The bill, which passed the Texas Senate (26-5) and House (134-5), will allow Texans to use the funds raised from the sale of their life insurance policy (also known as a life settlement) toward long-term care expenses.
Most states require an individual who applies for Medicaid to lapse their life insurance policy, an asset that may hold considerable value. With this new bill, Texans that own a life insurance policy with a face value exceeding $10,000 may elect to sell the policy as a life settlement and use the cash to fund long-term care assistance.
Dan Young, President of Vida Capital Management, a registered investment adviser located in Austin, Texas, believes that the bill reveals a continuing trend of acceptance for life settlements as an investment asset class. “We believe that, with proper regulation protecting policy sellers the life settlement market provides an outlet for seniors to monetize an unwanted or unneeded asset to generate much needed retirement income. States appear to recognize that value as well by: requiring insurance carriers to notify insurance holders who are lapsing policies of the existence of a secondary market and allowing the use of settlements to help with long term care costs.”
Other states, including Florida, North Carolina, Montana, and Louisiana, are introducing similar legislation in an effort to support retirees.
Vida Capital Management is registered* investment advisor and a vertically integrated asset manager focused on life settlements. For more information, please contact Josh Jones at 512-961-5667 or visit http://www.vidacapitalinc.com.
*SEC registration is not an endorsement and does not imply any level of skill or training.