Case Study: Budget Shortfall in Long Term Care

The Business Office Director of the Heartfields at Cary in North Carolina contacted us about a married couple in residence needing funding help to address a budget shortfall and their growing debt to the community. They both own long term care insurance policies but did not yet qualify to trigger all of their benefits. They also had applied for the VA benefit and were notified that they qualify but were not sure when the benefit will start. Still facing a financial gap in their ability to keep pace with their monthly commitment to the Heartfields of Cary; the family decided they would convert their life insurance policies into long term care “Viatical Assisted Living Conversion” plans. The couple owned two life insurance policies of $75,000 and $35,000 respectively which they were able to convert into long term care benefit plans within thirty days that started paying out $1,545 and $885 to the community on a monthly basis.

Case Study Example: Gender/ Age / DOB

  • Policy A. Male / 78 / 2-28-1933
  • Policy B. Female / 78 / 10-20-1932

Facility: Heartfields at CaryCary, NC

Policy Size:

  • Policy A: $75,000
  • Policy B: $35,000

Policy Conversion:

  • Policy A: $22,900
  • Policy B: $12,370

Viatical Assisted Living:

  • Policy A: $1,545
  • Policy B: $885


Final Expense Benefit:

  • Policy A: $3,750
  • Policy B: $1,750

Five Star Senior Living utilizes Viatical Assisted Living Conversions as a funding solution for Senior Living. The Viatical Assisted Living Conversion allows the owner of an in-force life insurance policy to convert their policy into a long term care benefit to help cover the costs of Senior Living and Long Term Care. Once enrolled, the benefit plan is administered on behalf of the family and the benefit payments are made directly to the facility on a monthly basis. A final expense benefit is also preserved for every family. Families with the need to pay for long term care that are unable to keep their life insurance policy in-force by maintaining premium payments, or who are being advised to abandon their life insurance as part of a Medicaid spend down regimen could potentially benefit from a Viatical Assisted Living Conversion.

Key Benefits of the Viatical Assisted Living Conversion Include:

  • Simple application and review process
  • No age or policy size minimum
  • No premium payments
  • All types of in-force life insurance qualify
  • Fixed payments made directly to care provider/facility
  • Preserves partial death benefit
  • SNF, AL, Home Health and Hospice all qualify