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How to Pay for Senior Care with Life Insurance

Last Updated: April 13, 2015

Q: What types of life insurance qualify for conversion into a Long Term Care Benefit Plan?

A: The conversion option applies to any form of life insurance: Universal, Whole, Term and Group. 

Q: What types of senior housing qualify?

A: The Benefit Plan is accepted by every senior care provider in the US and will pay the following monthly expenses directly to the health care provider:

  • Home Health Care
  • Assisted Living
  • Memory Care
  • Rehabilitation Care
  • Nursing Home Care
  • Hospice Care

Q: Are there any fees or obligations to apply?

A: No, there are no application fees or obligations to apply.  Once a policy is converted by the owner, the Long Term Care Benefit payments begin immediately and the enrollee is relieved of any responsibility to pay any more premiums.

Q: How long does the enrollment process take?

A: The typical enrollment time is 30-45 days.  Payments for care start immediately upon enrollment and there are no wait periods.

Q: Is there a funeral benefit?

A: Yes, all Benefit Accounts reserve 5% of the death benefit or $5,000, whichever is the lesser, to provide a funeral benefit payment to the Account's named beneficiary (one or more can be named).

Q: What happens if the enrollee dies before all of the long term care benefit is paid out?

A: Should the enrollee pass away with additional funds remaining in their Benefit Account, the remaining balance is paid directly to the enrollee's named beneficiaries.

Q: What happens once a person enrolls in the long term care benefit plan?

A: From the moment the Benefit Plan is established, the Benefits Administrator will begin making monthly payments to the appropriate health care provider as well as all future premium payments on the life insurance policy. 

Q: Is a long term care benefit plan Medicaid qualified or tax advantaged?

A: Yes, because the policy is sold for its full market value, and the funds are protected in a benefit account that is only used to pay for long term care services it is both a Medicaid qualified spend-down and a tax-free benefit account. 

Q: Which states can a policy be converted?

A: A life insurance policy owner has the legal property ownership right to convert their policy into a Long Term Care Benefit Plan in every state in America.

Q: How do I apply to enroll in a Long Term Care Benefit Plan?

A: To qualify for a Long Term Care Benefit Plan you need to own an in-force life insurance policy with a death benefit of $50,000-$1,000,000 and must have an immediate need for Senior Care.  To learn more about how to apply, click here

About the Author

Life Care Funding Chris Orestis, CEO of Life Care Funding, is an 18-year veteran of both the insurance and long-term care industries.  A nationally known senior care advocate; he is the author of the Amazon best-seller book "Help on the Way", a legislative expert, featured speaker, columnist and contributor to a number of insurance and long term care industry publications.  Chris is a frequent guest about senior issues on national radio programs; and has also been featured in the Wall Street Journal, New York Times, USA Today, Woman's World Magazine, Fox Business News, and PBS.

A former life insurance industry lobbyist with a background in long-term care issues, he created the model to provide a funding option for middle-class people who are not wealthy enough to pay for long-term care, and not poor enough to qualify for Medicaid.

His blog on senior living issues can be found at www.lifecarefunding.com. He can be reached at corestis@lifecarefunding.com.

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