Renee McDowell

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Life Insurance Policy Conversions To Cover Long Term Care Expenses

Something that does not get utilized or shared often enough...using Life Insurance to convert to Long Term Care.

One of the biggest issues facing baby boomers and retirees is being financially secure to cover costs for Assisted Living, Nursing Homes, Hospice, Home Health Care, etc. There hasn’t been enough focus on this subject.

According to the NAIC there is over $27 trillion of life insurance in-force today that is owned by approximately 150 million Americans. And most of those 150 million policy owners have no idea what their legal rights of life ownership are. If they did, there would never be millions of life insurance benefits that are walked away from every year. Life insurance is recognized as an non-qualified asset by Medicaid and the owner of the insurance policy has rights to sell or convert. For instance, a life insurance policy can be sold for money in the form of a life settlement. It can also be used to convert into a long term care benefit plan.

The biggest challenge in this case is educating baby boomers and the elderly about their rights in regards to their life insurance. In the instance of a Long Term Care Benefit Plan, seniors are throwing billions of dollars away when they cancel their life insurance to qualify for Medicaid. Those life insurance policies could qualify for immediate payments towards care of their choosing. For families that are faced with paying for Long Term Care, make sure to you look into converting your life insurance to Long Term Care Benefit Plan. And for those who are ever thinking about abandoning your life insurance policy, make sure to educate yourself.

Two great websites with more details on this concept are and

  • Mar 13 2013: That is very interesting. I never knew that.
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    Mar 13 2013: It's actually more than that George. They can get more than the cash surrender value. Even term insurance group insurance and life insurance policies with no cash value whatsoever may have a hidden value.

    Literally billions of dollars are thrown away each year by seniors. Sometimes to qualify for Medicaid when a long term care benefit plan could convert to payments to actually keep them off Medicaid and choose the rural nursing homes that they want.
  • Mar 13 2013: Good - If it has a cash surrender value, they can get the money. Also, rest homes are chreaper in rural areas.