Case Study: Medicaid Spend Down Path, Convert Life Insurance and Remain at Residence

A father was already a resident at Eldorado Heights in Klamath Falls, OR and already on a Medicaid spend down path. The family inquired about a Viatical Assisted Living Conversion as they were attempting to convert an existing life insurance policy and still extend his ability to remain in residence. He owned a $100,000 life insurance policy that they were advised to not keep because they were spending down for eventual Medicaid eligibility and the policy would count against them as an asset. The policy had $5,000 of cash value and a $2,000 loan. Within thirty days of submitting an application, the family qualified for a Viatical Assisted Living Conversion of $45,000. $45,000 in monthly payments as a long term care benefit plan to cover costs of senior housing and long term care.

Medicaid Spend Down Case Study Example:

Gender/ Age / DOB

Male / 77 / 6/20/1933

Facility: Emeritus of Eldorado HeightsKlamath Falls, OR

Policy Size: $100,000

Policy Conversion: $45,000

Viatical Assisted Living Conversion: $4,500

Final Expense Benefit: $5,000

A 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. Additionally it can cover costs to pay for assisted living or to pay for a nursing home. 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 funeral benefit is preserved for every family. Families with the need to pay for long term care or elder care that are unable or unwilling to keep their life insurance policy in-force by maintaining premium payments, or are planning to abandon as part of a Medicaid spend down regimen, a Viatical Assisted Living Conversion is often a much better choice.

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