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Joining us now is the man who buys -- -- life insurance policy.
And we always played the a few new aerial organ music because he bets on your death a life line -- program CEO Scott page now.
You were on our show -- -- And you said that you approve of the states doing this.
Buying -- the life insurance program policy from someone before they died.
And then they use that money to pay for that elderly long -- cash payments that.
You approve of this -- seems to me like -- competing with your line of business.
No actually it's it's helping our line of business because the problem -- have a life settlements.
Here for the last 45 years -- consumer awareness.
The insurance industry never won -- consumers to know that there were any other option available with her life insurance policy except surrendering and cancel it for zero.
I was 85% of every life insurance policy -- -- never pays a death claim so with this now -- new state movement now the states are required to inform consumers.
Before they go in the Medicaid that if they have a life insurance policy they should consider selling it into the -- -- of the market we think it's a huge success.
It's this it's a money grab by the state though isn't it I mean this thank all they all need money and here's a pot of gold to go acts.
I mean it's -- grab -- net.
It is a graduate of the states are looking for anyway they can to help shoulder the burden of what's happening with this Social Security Medicare Medicaid.
And this is a way to help the State's slow down the burden of children not all -- -- by the help of a private sector.
No one in four people apply for Medicaid have a life insurance policy normally they would just allow that policy to counsel for nothing.
Now the states are encouraging them to sell the policy the -- -- deposited into a private trust account.
And those funds are used to pay for long term care services so it allows the individual.
To get a much higher quality care they can direct where they want the funds spent on what type of health care services.
And they're not relying on what's happening with the state and the Medicaid.
But if that that money but what date that the consumer gets the that although although it doesn't get that up by tax on the money -- them.
They if they go what do they do they pay tax -- if they go through the state they don't.
Well at it there is a special exemption for individual song a policy it depends on the type of villas they have their life expectancy that's chronic or not some -- actually qualify for tax savings that they don't have to pay tax on the proceeds of -- life settlement.
It really depends on the individual circumstances you just -- be free advertising you get when the states do you know something -- you winds -- -- -- we do understand that in fact what we understand also you know when we first brought this up last week it was the first to be told across the country -- -- company were cutting edge on news writer wanted to we've thank you very much for that Scott Q the funeral music and -- -- to thank very much help pay.
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