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Will Life Insurance Pay for Senior Care?

Life insurance itself does not cover home care. However, universal, whole, term and group policies can be converted into what’s referred to as a “long-term care benefit plan” that can help seniors and their family members cover some of the expenses related to home care in Boca Raton.

How It Works

Seniors with an “in-force” life insurance policy (one that is current with underwriting decisions approved) may transform their policy into a pre-funded financial account. This account will disburse a monthly benefit to help pay for home care or long-term care needs.

Transfer of the Policyholder

When a life insurance policy is converted into a long-term care benefit plan, ownership transfers from the original policyholder to a person who will act as the benefits administrator. Since the original policyholder no longer owns the policy, it won’t count against any Medicaid benefits that can be used to further help with home care expenses.

Role of the Benefits Administrator

The benefits administrator assumes the responsibility of paying monthly premiums for the policy to their senior loved one’s insurance company. They must also agree to pay the original policyholder monthly payments based on the value of the policy. Funds can then be paid directly to the health care provider to cover:

  • Private duty and skilled home care
  • Assisted living
  • Skilled nursing home care
  • Memory care
  • Hospice care

Value of the Conversion

The value of a life insurance policy converted to a long-term care benefit plan is based on the death benefit. The cash value of the policy is not considered.

By converting a life insurance policy to a long-term benefit plan, seniors are able to put any extra funds (after home care expenses have been deducted) aside for future expenses like covering funeral costs. An insurance agent can answer further questions and get the process started.

For more information on senior care in Boca Raton, reach out to Home Care Assistance. In addition to flexible hourly and live-in home care, we provide stroke, Parkinson’s, dementia, and Alzheimer’s care Boca Raton families count on. Our caregivers are trained and experienced, our Care Managers are available 24/7, and we back our services with a 100% satisfaction guarantee. Call our office today at (561) 826.9282 and schedule a complimentary in-home consultation.