It appears that OpenID is gaining prominence. OpenID is a decentralized identity system that can be used for authentication for various sites. When you want to authenticate your identity, you enter a url for a page that you control. This page contains will contain link tags with the location of the OpenID server where authentication happens.
This solution seems to work pretty well. Unfortunately, it setting up an OpenID identify is a little complicated. If you are not on system that natively supports OpenID, you will need to either configure a server your self, or use one of the OpenID identity services.
Since I didn't want to be dependent of a third party service for a "decentralized" identity system, I decided to install phpMyID. phpMyID is a php script that implements a single user Identity Provider.
I probably will look into what it would take to write a plugin so OpenID is supported within LifeType.