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Finding ways to afford assisted living can be one of the most difficult parts of planning long-term care. While traditional savings, long-term care insurance, and Medicaid planning often take center stage, there’s a lesser-known strategy that may offer relief; converting a life insurance policy into a long-term care benefit. This method doesn’t work for everyone, but for those who qualify, it can help bridge financial gaps without giving up needed care.
Assisted living costs can add up quickly, and for many families, affording long-term care requires creative financial planning. One potential but often overlooked source of funding is a life insurance settlement. If your loved one holds a life insurance policy that they no longer need or can no longer afford, selling that policy could help generate cash to pay for assisted living.