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Helping Our Parentsby Dr. Meagan Lawler

When you’re ready for help, an innovative medical service may be a wise first move.

Yet how does one ask for help in caring for an elderly loved one? Despite our sincere efforts to manage it all, does there come a point when it’s

best to seek professional help?

Before suggesting solutions, let’s first consider the situation that well-intentioned Celia finds herself in: Celia’s co-workers frown. It is the fourth time this morning she’s received a call from her 85-year-old mother. Celia is trying to manage her job, her children and her own life, yet still be a support for her recently widowed mother.

Celia had not realized just how much her late father had handled while running the household. He would clean house and do laundry, buy food and prepare meals. All the while supporting her mother in all her daily needs, right down to managing her medications. Celia’s mother never paid the bills or managed the family financials.

The last time Celia was at her parent’s house she was greeted by a hungry cat, a pile of unopened mail, dirty dishes stacked up in the sink, and the laundry piled up on the living room furniture. Her mother was in her bathrobe eating breakfast cereal at 2:00 p.m. with the tv and radio on at the same time.

Celia wants to be there for her mother, but wonders where to start. She can perform most of the chores, but she asks herself, will her mother cook or continue

Inside This Issue

Reverse Mortgages .................. 2

Veterans Pension ...................... 3

Our Mission .............................. 6

Growing Whole ......................... 6

Healthy Habits .......................... 7

continued on page 4

Life LinesLife SettlementFinancial

Volume 1, Issue 2

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In My Opinion

People often confuse when to use reverse mortgages and life settlements as financial tools to provide cash payments for seniors.

Reverse mortgages are designed to provide a lump sum payment or a continuing stream of monthly income to seniors for as long as they live in their home. When they leave the home, it is sold and the reverse mortgage lender is paid. The anticipated income stream from a reverse mortgage is based on three factors: 1) the debt free current value of the home; 2) the age of the senior; and 3) the prevailing interest rate set by the lender. These variables present two problems for seniors who want cash in this depressed economic climate:

Lenders c1. annot predict how much more housing prices will decline, and

The senior’s age and life expectancy over 2. which the lender will make payments is based on conservative estimates set by Social Security or annuity life expectancy tables.

A life settlement has certain advantages over a reverse mortgage, especially today when you want cash to relocate in a senior retirement community and do not want to sell your home at fire sale prices. Life settlement cash payments consider your current health which can mean your life expectancy is shorter than the Social Security tables for the population as a whole. This means the lump sum cash payment can be higher because the provider can anticipate

making policy premium payments for a shorter period of years. The cash from a life settlement can provide the funds to pay for senior care while your home is converted to a rental property, waiting for the real estate market to improve.

Reverse Mortgages are Different from Life Settlementsby Peter Mazonas, Chief Executive Officer

Peter M. MazonasChief Executive OfficerPeter Mazonas is co-founder of Life Settlement Financial, a state licensed life settlement and viatical provider with offices in

the San Francisco Bay Area and Portland, Oregon. Peter is a Price Waterhouse trained CPA and the creator of both the Executive Financial Counseling and Private Banking Divisions of Bank of America. Peter later created Transamerica HomeFirst, the largest originator and servicer of non HUD/Fannie Mae reverse mortgages in America.

www.lifesettlementfinancial.com

Life Settlement Financial encourages your questions, comments and input on the topics in our newsletter. Please forward them to inquiries@lifesettlementfinancial.com.Peter Mazonas, CEO

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Veterans Pension Helps Pay Long-Term Care

You may be entitled to a special tax-free VA Pension worth more than $20,000 annually. All disabled war era veterans and

their widows should apply or seek professional assistance to review eligibility. Peacetime veterans do not qualify.

If you qualify and are a veteran or the widow of a veteran, the pension is paid directly to you and can be used to help pay for long-term care expenses. Monthly payouts range up to $1,554 for a single veteran; up to $1,842 for a married couple; or up to $998 for a surviving spouse of a war era veteran.

VA Non-Service Disability Pension is based on need and consideration of income, assets, disability level, and medical expenses. Your ongoing high medical expenses (long-term care costs) are offset against your income, in effect, reducing it to help you qualify for a VA Pension. You can use the pension as you wish.

To qualify, you must have:90 days active duty for veterans entering 1. service prior to 9/7/80. (NG/Reserve active duty for training does not count). 24 months of continuous active duty is 2. needed for veterans who entered active duty on or after 9/7/80.One day of active duty service during a war 3. era. You need NOT have served in combat or in a war zone. You only need one day during a war era. War eras are as follows:

WWII: 12/7/41 – 12/31/46Korean War: 6/27/50 – 1/31/55Vietnam War: 2/28/61 – 5/7/75 (in country only)Vietnam War: 8/5/64 – 5/7/75Persian Gulf War: 8/2/90 – Present

An acceptable character of discharge. 4. Usually any discharge other than a dishonorable discharge will qualify. Been permanently and totally disabled as 5. deemed by VA. Disabilities do not have to be service related. (If you are 65 or older you qualify automatically).

A veteran’s disability level plays a big part in how much pension he/she will receive. Disability levels are broken down as follows:

Basic Pension: Age 65 qualifies a veteran automatically—or the veteran must be rated permanently and totally disabled (unable to work gainfully) by VA.

Housebound: VA must find veteran is substantially confined to his/her immediate premises.

Benefits

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by Gregory Harestad and Michael Riedel

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to exist on cereal? Will she take her medications on time? Is she depressed or is she suffering from the onset of dementia? How capable is Celia’s mother of continuing to live on her own?

Does her mother need more help that Celia can give?Just what are the criteria that professionals in the field of aging services use to help them make that determination? There are five Activities of Daily Living (ADLs) that people perform to survive and function in daily life: feeding, dressing, toileting, hygiene and ambulation. If individuals are not able to perform any one or more ADLs, other ADLs may be affected as a consequence.

The healthcare system continues to rely on ADLs and Instrumental Activities of Daily Living (IADLs) —tools originally developed in the 1950s to measure care recipient’s functional abilities—to assess caregiver’s lives to determine eligibility for public and private benefits, and design educational and support services for those providing care to the elderly.

As the population ages, the number of elderly patients with chronic, complex medical problems will increase. The present medical system, with its emphasis on acute care, busy office schedules and fragmented delivery systems often frustrates older patients and their families.

The very old or frail patient frequently has health problems that are overlooked, ignored or partly treated. Fortunately, there is an innovative medical service emerging which uses a team approach to meet the special needs of the older patient: Geriatric Assessment.

The goals of a Geriatric Assessment:

• Minimize hospitalizations. Although the elderly currently comprise 12% of the U.S. population, they use 40% of hospital resources. In addition to cost, hospitalization is confusing and stressful and at times dangerous to the elderly.

• Establish complete medical diagnoses which are often overlooked by other physicians, including hearing impairment, vision deficits, early dementia, depression, poor nutrition and injury due to falls.

• Decrease over-prescribing medications. The elderly use 33% of all prescription drugs which often have adverse effects and result in 10-15% of hospitalizations in this age group.

Geriatric Assessment uses a team consisting of a geriatric physician, geriatric nurse and a social worker. Each member of the team evaluates the patient from either a medical, functional or psychosocial point of view. Additional members of the team might include a physical therapist, occupational therapist, nutritionist, pharmacist, dentist, psychologist and podiatrist. The focus is on geriatric concerns such as malnutrition, incontinence, falls, vision and hearing impairment, memory loss, depression and anxiety, immobility, caregiver stress, economic resources and quality of life issues which are assessed and a treatment plan constructed to best meet the needs of the elderly patient.

Family Care

Helping Our Parents… continued from front cover

The goals of a Geriatric Assessment:

• Minimizehospitalizations.

• Establishcompletemedicaldiagnoses.

• Decreaseover-prescribingmedications.

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Dr. Meagan Lawler is active in community health as an administrator, consultant and trainer to non-profit agencies and hospitals.

Aid and Attendance: Medical documentation must show the veteran requires the aid of another person in order to perform personal functions required in everyday living such as bathing, feeding, dressing, toileting, adjusting prosthetic devices, or protecting himself/herself from the hazards of his/her daily environment; OR if the veteran is permanently bedridden, in need of nursing home care, and/or blind.

Net WorthNet worth is also considered. Generally, the VA will count any asset that can be easily converted to cash (savings, stocks, bonds, mutual funds, CDs, money market, etc.). Veterans or widows with less than $50,000 in liquid assets may qualify. The limit is $80,000 if you are married. A veteran’s or widow’s primary residence, cars, and personal property are NOT generally counted.

The cash value in a life insurance policy is not generally considered unless you cash in or sell the policy. When considering a life settlement and qualifying for the VA Aid and Attendance program, you should obtain expert advice before proceeding.

You Must Apply We encourage all veterans or widows to apply even if they think they might not qualify. A lot of veterans who have qualified never thought they would. For more information contact the VA directly or your local county VA representative.

This article was co-authored by Gregory Harestad of Life Settlement Financial, LLC and Michael Riedel, Author of Veterans Unclaimed Benefits; The Insider’s Guide, available through the Barnes and Noble website at www.bn.com.

A typical patient who could benefit from a Geriatric Assessment would be:• Over age 80• Falling frequently• Losing weight because of poor nutrition• Depressed due to loss of spouse and friends• Experiencing memory loss• Hospitalized more than 3 times in 2 months• Taking more than 5 medications regularly

The primary physician is a key link between the Geriatric Assessment Team and the patient. This physician must cooperate with the team’s recommendation and monitor the patient’s treatment plan.

As the U.S. health care system changes from its costly system of treating acute health problems with frequent office and hospital visits to a more cost-controlled and coordinated, comprehensive health management system, Geriatric Assess-ment will often play a key role in identifying and correcting problems and maintaining the health and quality of life of our older citizens.

These complex issues are examined in the book Family Caregivers On The Job: Moving Beyond ADLs And IADLs produced by The United Hospital Fund authored by Carol Levine. The book can be obtained by visiting the United Hospitals Fund’s website www.uhfnyc.org.

Vets… continued from page 3

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Benefit Increase for 2009

A projected increase for 2009 of more than 6% indicates the average senior may get an extra

$75 per month starting in January 2009. This increase is the largest since 1982.

Social SecurityFinances

Please return the enclosed card inserted in the center of this newsletter for more information about cashing out your life insurance policy or to schedule a speaker.

Life Settlement Financial co-sponsored the 2nd annual National Positive Aging Conference hosted by the University of Minnesota’s Center for Spiritual Healing Conference at

Marylhurst University on November 12, 2008.

Conference topics included tools and resources to explore purpose, meaning and vitality in the second half of life. With the goal of advancing a national conversation around positive aging, the conference webcast featured such luminaries as Richard Bolles, author of What Color is Your Parachute?; Richard Leider, author of Something to Live For and founder of the Purpose Project; Mary Jo Kreitzer, director University of Michigan’s Center for Spirituality & Healing; Harry Moody,director, Academic Affairs for AARP and Dan Buettner, explorer, educator and author of The Blue Zone: Lessons for Living Longer from the People Who Live the Longest.

Our Mission: Education

Growing Whole…Not Old

New to Our TeamArea CoordinatorJohn Nichols has been responsible for wealth management issues with an emphasis on realistic and effective retirement planning strategies. He graduated from the University of Cincinnati with a B.A. in Political Science and has attended several training seminars in Elder Care Planning and Wealth Planning for seniors in or nearing retirement.

Responses to “Inquiries:”Question: If I sell my policy in a life settlement, is there any restriction on how I can spend the money that I receive?Answer: You are free to do with the money anything that you choose. Some people are using the proceeds of a life settlement to fund the move to a senior residence community while others are gifting it now instead of having their heirs wait.

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Life Settlement FinancialCelebrates LifeLife Settlement Financial has initiated a program of honoring centenarians.

Many will be highlighted in future issues of LSF Life Lines. Your assistance in helping identify centenarians in your community is appreciated.

Send information or inquiries to: centenarians@lifesettlementfinancial.com

LSF Celebrates LifeA Centenarian is a person who has attained the age of 100 years or more. Because current average life expectancies across the world are less than 100, the term is invariably associated with longevity. Much rarer, a supercentenarian is a person who has lived to the age of 110 or more, something only achieved by 1 in a 1000 centenarians. Check out the National Centenarian Awareness Project at www.adlercentenarians.org for more on celebrating active centenarians as role models for the future of aging.

Nine Healthy Habits

Move naturally – be active without thinking about it1)

Cut calories by 20 percent2)

Plant-based diet – no you don’t need to be a vegetarian but 3) do bump up your intake of fruits and veggies

Drink red wine (in moderation)4)

Plan de Vida: Determine your life purpose. Why do you get 5) up in the morning?

Down shift – take time to relieve stress6)

Belong/participate in a spiritual community7)

Put loved ones first /make family a priority8)

Pick the right tribe – the 9) people surrounding you influence your health more than almost any other factor

Health Matters

You’ll find much

more success with

new habits if you

have others who are

helping you along

the way.

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Corporate OfficeLife Settlement Financial, LLCP.O. Box 3437San Rafael, CA 94912-3437

Offices in San Francisco and Portland

Member and program partner of Oregon Health Care AssociationMember of Oregon Alliance of Senior and Health ServicesMember of California Assisted Living AssociationMember of Washington Health Care AssociationMember Assisted Living Federation of AmericaLife Settlement Financial, LLC is licensed with the Oregon Department of Consumer Affairs

A Life Settlement: An Alternative to Selling Your Home at Less than Full Value

Seniors in need of cash are often forced to remortgage their homes. Today one-in-four American homeowners has a mortgage balance that is larger than the depressed value of their home. So selling a

home in today’s difficult economic times likely means accepting an offer that is far less than if would have been two years ago or might be two years from now. Rather than selling the family home, consider using it as a rental property until the housing market improves.

To raise cash for a move into a senior community or other family need, many seniors are opting to sell their unneeded life insurance policies in a life settlement rather than sell their homes. Yes, it seems like a good idea to keep the policy to provide an inheritance for the family, but this can be a costly choice. A life settlement provides the policyowner a significant cash payment depending on the medical and actuarial life expectancy of the insured. The policyowner receives the agreed upon amount in full at the close of escrow. This cash can be used however the policyowner chooses. Not having to continue to pay policy premiums is an added bonus. This may not be the right alternative for some seniors, but is worth exploring.

Life Settlement Financial LLC

Toll Free: 1-888-321-5970

E-Mail: inquiries@lifesettlementfinancial.com