How Your Life Insurance Policy Can Help In Long Term Care

In the past I have covered article on life insurance over 50 and guaranteed acceptance life insurance for seniors. Now personally, I have been a devil’s advocate when it comes to buying life insurance for seniors unless there is a specific need which will vary from person to person. Hence, one elderly person might be an ideal candidate for a life insurance policy and for others it may not be a good idea. Looking at various advancements which have happened in the recent past, are you aware that your life insurance policy can be used to pay for long term care expenses? I bet, you didn’t. Now you might think that I am referring to the cash value of your life insurance policy, where you can remove some money to care of emergency financial liabilities. Well, I have never been an advocate of whole life insurance unless you are starting out young. In other words, life insurance is not an investment tool.


The Concept: “There are many companies which have emerged in an endeavor to help seniors in converting their life insurance policies into a long term care benefit plan which is paid out monthly to the care provider of your choice.” Once such company which is a pioneer in this field is LifeCareFunding There is a hassle free qualification process. Once you get approved, you can choose the type of long term care you’re looking for. The life insurance policy can be bartered for Alzheimer’s Care, Assisted Living, Skilled Nursing Home Care or Home Healthcare. If you agree to part ways with your life insurance policy, you will get a pie from the face value of your plan which eventually will help in paying for long term care. The company will keep paying for your life insurance policy active by paying premiums regularly. After your death the company will make profit by cashing in on your life insurance policy. The money which you receive is put into a FDIC funding account through which monthly payments are made to the long term care provider. You can also take care of final expense through this conversion. This concept is a perfect alternative to buying life insurance with long term care rider


Does This Business Model Make Sense?

Now to answer this question, let me give your some stats. In a nationwide survey conducted by one of the life settlement providers it was found that 55% of insured seniors have just allowed their life insurance policy to lapse. Moreover, more than 80% of people over the age of 66 do not even know that they can trade off their life insurance policy to fund their long term care needs. In fact 2 in every 5 citizen have this feeling of negative financial security during their retirement years. So, this kind of move does make sense. This will also help in answering the question of far less payout as compared to the face value of your life insurance policy. Also if this is the right financial move for you would again depend on your individual circumstances. If you have dependents and family to take care of then obviously this concept does not make sense. In short, if your death benefit is important for you then do not seek help through this system.


How Much Money You Get If You Part Ways With Your

Life Insurance Policy

The money which you receive due to letting go your life insurance depends on some kind of mathematical calculation which is used by companies offering such kind of services. It takes into account your age, current health condition, medical history and your life expectancy. All these factors make them analyze their profit. One thing is for sure that you do not get the full amount which equals face value. You can expect anything up to 50% of face value.

Leave a Reply

Your email address will not be published. Required fields are marked *