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How's this for an off beat investment.
You sell your life insurance policy before you -- -- cash out basically before you die.
Well states some states on getting in on the act that doing it -- There -- Welcome to visit this golf page frequent guest on this program he's the -- -- -- lifeline and -- Which does this kind of thing in the private world that is correct but let me just tell you what is what you do and -- -- got it right.
Somebody comes to you that -- life insurance policy you buy the policy.
And you give the other put the person cash you don't give a much that you allow them to cash out well that's what you do.
Exactly correct we give them an option which is a little surrendering cancel the policy getting an zero and most times it's eight to ten times more than what the insurance company we give them if they simply surrendered it with the insurance -- Still Paramount they -- usually about twenty cents on the Dawson from -- if I get a million bucks when I die.
You'll do -- give me 200000 bucks up front is that it.
Well to a more complicated than that we take into account how much premiums -- cost to keep the policy and -- -- we also look at how long individuals projected to live.
So the average range could go anywhere from 12% all the way up to 60%.
And now with this new law this afternoon taxes -- certainly given us some advantages to help consumers be more aware of the specific option.
Now some states -- saying okay you we will bide your life insurance policy before you die.
And instead of giving you cash we will give you.
Met a cat or -- treatments or a hospitalization.
All will give view all persons -- -- are back.
Payment you know kind year old age that's a competition for you.
Well actually it what happens is the state house passed -- the system in Texas.
That allows Medicaid applicants to sell their life insurance policy and the proceeds.
What that does is allows an individual to select private pay.
Which means -- quality care is going to be better.
And they spend this money down prior to going on the Medicaid it's estimated by the Government Accountability Office that one in four people applying for Medicaid have a life insurance policy.
Currently you have to surrender that life insurance policy to be eligible for Medicaid.
What this -- -- -- individuals to do is to sell that policy take the proceeds pay for its long term care.
And it delays the entry into Medicaid.
So it's stating the State's money in Texas alone one in four individuals -- for Medicaid have a life insurance policy at the bit about your native Italy.
That definitely -- actually different than originally.
-- -- know we're actually purchase in the policy the states are now endorsing the transaction.
Because -- an individual cells their policy to us they take the proceeds pay -- -- care it delays and entry into Medicaid it's gonna say the state of Texas over twenty million dollars in the first year.
Because individuals who would originally be taken state funds to pay for their health care.
Are -- gonna go to take the proceeds from the life settlement and Kapler health -- so it's really delaying the entry in the Medicaid so you still take you'll piece you -- still betting on death.
We are still betting on death and we are still purchase in the policy but finally the private sector and the government are working together and it's all about awareness this new law mandates.
To be advised that instead of surrender their life insurance policy and zero we're the only one that wins and that is the scenario is a life insurance companies.
To actually sell it to the life settlement market and get proceeds that they need to live their life with quality and make the health care decisions they need.
Because let's face with -- obamacare which I'm not a fan of any longer I've been converted I am no longer.
And hello there are OK.
Okay the fifth that it didn't happen and I've got about twenty seconds left and he hit it with the lead for the entire segment what.
-- -- -- that you don't you know fifteen seconds you tell me why -- no longer a -- of a -- look at.
Because -- business in the past two years my health care has skyrocketed 40% for health care costs.
And I'm looking at what's -- with this specific role with Medicaid they're being jammed into accepting a little bits amounts of of of money for their services and it's affecting the care of individuals in this country.
Let's settlements -- one option thank god the state of Texas -- the first to get on this movement there are seven other states behind it and your verdict first -- born in company.
Like settlers are gonna become part of a retirement option for everybody all right hey Scott page thank you very much and -- you said the best the last little math facts and what's gotten good stuff by the way.
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