You think you can’t afford Home Care Services? Read on to find a third source of funds to be able to get the care you need.
This option is known as Conversion of a Life Insurance Policy. When a senior has a Life Insurance Policy, a portion of the death benefit may be converted into a Long Term Care Benefit Plan. This benefit is paid directly to the care provider of the policy owner’s choice and it is sometimes tax free (depending on many factors such as who owns the policy, the use of the proceeds, the health of the insured, among other factors).
This conversions are usually flexible, meaning, it can adjust over time to the changing senior’s care needs. Some policy owners might be tempted to allow the policy to lapse or surrender it for any remaining cash value. Some people consider this a big mistake when that same policy could be used to pay for the cost of senior care by converting a portion of the death benefit into a Long Term Care Benefit.
Once a life Insurance policy is converted into a Long Term Care benefit, there are no fees or obligations to this benefit, and there are no more premium payments due on the policy. However, the policy owner will be “selling” the policy to the new plan’s administrator.
People acquire Life Insurance Policies mainly because they want to have the peace of mind of leaving a decent amount of money to their loved ones in case of premature death, to guarantee their loved ones’ financial stability when the main source of household income is no longer there. When senior Life Insurance policy owners are facing health challenges, chances are they do not have the same preoccupation they had when acquired the policy in the first place. Their children are probably adults now, and the policy owner might be single again, so why not make themselves the beneficiaries of those policies that were kept for years and years?
If you thought you can’t afford Home Care Services but are a Life Insurance Policy owner and want more information on this regard, please click here and fill out the form and one of our expert advisers will be happy to answer any questions you may have.