LISA Supports Proposed Bill on Life Settlements

Fifteen years ago, business executive Bill Schantz established Mid Atlantic, LLC, in Maple Shade, New Jersey, to serve as a holding company for insurance related businesses. As a specialist in life settlements, Bill Schantz is a CEO and Founder of Senior Settlements, LLC, member of the Life Insurance Settlement Association (LISA).

LISA has expressed its support for a bipartisan proposal that will benefit seniors by allowing them to generate billions of dollars through life settlements. H.R. 5958, also known as the Senior Health Planning Account Act (SHPAA) was introduced by New York Representative Brian Higgins (D) and Florida Representative Gregory Steube (R).

If enacted, the act will allow seniors to roll over the proceeds of a life settlement transaction into Senior Health Planning Accounts free of tax. Seniors could use the money to defray healthcare costs for themselves and their spouses.

SHPAA offers more flexibility for future expenses than the existing law on life settlements. The current law allows for tax-free life settlements only when the insurance is sold when the policyholder is already sick.

SHPAA will also result in significant Medicaid savings since private resources, not taxpayers, will pay for healthcare expenses. Additionally, SHPAA will generate tax revenue for the government.

LISA chairman Chris Conway lauds the proposed measure, saying it will help seniors face the high cost of health care in retirement while reducing the burden of the state and federal budgets.