For those Seniors in critical need of funding long term care certain Inforce Life insurance might help.
Life Care Funding: What you Should Know
- Monthly, Tax-Free Benefits will cover any form of care
- There are no monthly premium payments and it is not a loan
- You can convert any type of life insurance plan: whole, term, group or universal
- Monthly payout amounts are adjustable based on how many months a person wants to receive payments. For instance, a person whose life insurance policy converts into $12,000 in total benefits could choose to receive 12 monthly payments of $1,000 or 24 monthly payments of $500)
- These monthly payouts would not count against an individual seeking to qualify for Medicaid coverage sometime in the near future. A long term care benefit plan is recognized by Medicaid as an acceptable spend-down during the five year look-back period.
- A long term care benefit plan is comprised of “private pay” dollars, which means that it can be used to pay for any kind of care—home care, nursing home, assisted living and hospice.
- A special fund is set aside for a future funeral expense tax-free cash payment
- Anyone wishing to apply for a long term benefit plan must have an immediate need for some form of acceptable long term care. This is because monthly payments are made directly to a long-term care provider, not the previous holder of the life insurance policy.
- It’s not ideal for everyone. Individuals with smaller policies ($10,000 or less) are probably better off holding on to their plan, or giving it up it in exchange for the cash surrender value. Also, people who’ve got a life insurance policy with a large cash value built into it (i.e. a $100,000 policy with a $90,000 cash value) are better off taking that cash value than converting it.
- A long term care benefit plan is not the same as a long term care insurance or an annuity.