Last Updated: January 15, 2014
- NO Age Minimum
- NO Policy Size Minimum or Maximum
- Policy in effect a minimum of 24 months
- Any form of life insurance can qualify
Q: Can a life insurance policy be used to pay for the costs of
senior housing and long term care?
YES! If a policy owner no longer needs, or can no longer afford
a life insurance policy, and is considering letting the policy
lapse or surrendering it for the cash value - then cashing in a
policy through a Life Settlement or the Life Care Assurance Benefit
is the right answer.
Q: What is a life settlement?
A: A life settlement is the sale of an in-force life insurance
policy by the policy owner to a third party
Q: What is the Life Care assurance benefit?
A: For the owner of an in-force life insurance policy, the Life
Care Assurance Benefit program covers the costs of Senior Living
and Long Term Care while preserving a death benefit.
Q: Are there any restrictions to liquidate a life insurance
A: A life insurance policy is personal property and the owner is
free to transfer ownership for the highest possible value without
any restrictions as it is not a loan, nor a government subsidized
program, or a long term care insurance policy.
Q: Am I responsible for paying the premiums after I have
settled a life insurance policy?
A: No, the entity that purchases your policy will be responsible
for paying the premiums and you will be relieved entirely of that
Q: What are the rights of a policy owner?
A: A life insurance policy is legally protected as personal
property and the policy holder has the guaranteed right to manage
and sell their ownership interest in a life insurance policy
without limitations-- and at the highest possible value. All
insurance policy owners have the following rights:
- Name the policy beneficiary
- Change the beneficiary designation
- Sell the policy to another party
- Assign the policy as collateral for a loan
- Borrow against the policy
Q: How does a life settlement compare to other funding options
A: A life settlement offers a lump sum payment based on the life
expectancy of the policy owner and the value of an existing policy
in exchange for transferring 100% of the death benefit to the
buyer. There are no restrictions on use of funds, no requirement
for re-payment, no upfront fees, no requirements to be below set
asset and income levels.
Q: How does the Life Care assurance benefit compare to other
funding options for seniors?
A: The Assurance Benefit allows a policy owner to use the policy
to pay for the costs of senior housing and long term care directly
to the care provider while still preserving a death benefit.
- Senior Living benefit paid directly to care facilit y/
- First three months paid in advance
- Preserves a death benefit over the course of the payout
- Provides for a final expense death benefit payment
- No policy size or age minimum
- Can be used for Skilled Nursing, Assisted Living and Home