NAIC Endorses Concepts Pioneered by GWG Life’s LifeCare Xchange Creating Private Market Options for Financing Long-Term Car...
July 25 2017 - 4:05PM
GWG Holdings, Inc. (Nasdaq:GWGH), the parent company of GWG
Life, a financial services company committed to transforming the
life insurance industry through disruptive and innovative products
and services, announced that The National Association of Insurance
Commissioners’ (NAIC) Long-Term Care Innovation Subgroup has
endorsed the exchange of life insurance policies for private pay
options for long-term care services, a concept pioneered by GWG
Life and now being offered exclusively through the company’s
LifeCare Xchange (LCX).
GWG Life is focused on delivering innovative private market
solutions to help finance America’s long-term care needs through
the exchange value of life insurance. In June, GWG Life announced a
partnership with longstanding insurance market participants to
promote LifeCare Xchange (lcx.gwglife.com) to address the long-term
care needs of aging Americans.
The NAIC now openly supports this approach as a means for
creating innovative insurance-based solutions providing seniors
with private pay options to finance long-term care services. While
70 percent of Americans will use some form of long-term care during
their lives, Associated Press-NORC Center for Public Affairs
Research shows that only 35 percent have set aside money to pay for
long-term care needs.
“This is a watershed moment for the life insurance secondary
market and seniors who benefit,” stated Chairman and Chief
Executive Officer Jon Sabes, “GWG Life has been committed to this
market for over eleven years, waiting for broader support for the
creation, maintenance and repurposing of value seniors have inside
their life insurance. The NAIC’s recognition and endorsement for
continued innovation is a significant movement forward for the
entire industry and the consumers who stand to benefit from
it.”
The NAIC policy statement issued July 19 cited a GWG Life
presentation in its discussion on how the life insurance secondary
market can provide consumers substantially more value than if they
lapsed or surrendered their life insurance policies and save
taxpayers millions in Medicaid funds to pay for long-term care
services. The policy statement also specifically cites that the
proceeds from exchanging a life insurance policy can, “fund a bank
and trust account to make monthly payments directly to a designated
long-term care provider.” The LifeCare Xchange is the only such
recognized account in the market for this purpose today.
“We have pioneered this concept and implemented it through our
LifeCare Xchange program which we’ve taken around the country with
a specific educational program for insurance agents and the seniors
they serve,” said GWG Life Executive Vice President Chris Orestis.
“LifeCare Xchange can help close the funding gap for the millions
of seniors who will need long-term care, but who don’t have other
resources to pay for it.”
About GWG Holdings, Inc.
GWG Holdings, Inc. (Nasdaq:GWGH) the parent company of GWG Life,
is a financial services company committed to transforming the life
insurance industry through disruptive and innovative products and
services. The company has developed a new suite of options for the
life insurance secondary market called LifeCare Xchange (LCX). This
new capability provides seniors with the exchange value of their
life insurance policies they can apply to long-term care and other
post-retirement needs. GWG Life seeks to further transform the
industry by applying proprietary M-Panel epigenetic technology to
disrupt traditional life insurance underwriting practices. Since
2006 GWG Life has provided seniors over $418 million in exchange
value for their life insurance and, as of March 31, 2017, owned a
portfolio of over $1.4 billion in face value of policy
benefits.
For more information about GWG Holdings, Inc.
email info@gwglife.com or visit www.gwgh.com.
Media contacts:
Dan Callahan
GWG Holdings, Inc.
(612) 746-1935
dcallahan@gwglife.com
Matt Ehlers
G&S Business Communications
(919) 870-5718, x3221
mehlers@gscommunications.com
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