Convert Life Insurance into a Long Term Care Benefit Plan, even if it has no cash value or a large loan. Recently, a daughter was exploring funding options, as her father was in need of long term care in an assisted living community. The family was paying for their father’s care and their funds were dwindling, but they did not want to be forced to move their father into a particular nursing home.
The father owned a few life insurance policies and wished to convert one $50,000 life insurance policy which had an $18,000 loan. His life insurance policy did have value as a long term care benefit plan and Within 30 days they were able to complete the long term care conversion of the life insurance policy. The plan was set up to pay out each month to assist the family in meeting the expense of long term care. The family did not have to repay the loan on the life insurance policy and no longer had to make premium payments.
The family eventually converted a second policy into a long term care benefit plan as well. The second policy was smaller than the first, but the life insurance conversion payout from the the two combined policies allowed the family to extend the time their father could stay in their desired assisted living facility by nearly two years. The $50,000 policy with the large loan and a smaller $25,000 policy, when combined, provided nearly $30,000 in total payments towards the cost of long term care over a three year period.
Before you lapse your life insurance, see if you can convert life insurance into a Medicaid life settlement plan.
**Case study on file