Paying for Long-Term Care Can Be Difficult: Here Are 6 Ways to Do It

Life settlement

Suppose you have an existing life insurance policy. It’s an asset with ownership rights. Life insurance policies contain a value that frequently goes unrecognized. You may allow your life insurance to lapse because it’s no longer needed.

But you could’ve converted it into a long-term care benefit. Many seniors are using their existing life insurance policies as collateral for paying for long-term care.

If you had a life insurance policy with a $1.2 million death benefit on which you paid $35,000 in annual premiums, the policy had minimal cash value, and you might have contemplated letting it lapse.

But using a Medicaid life settlement, you could have exchanged your life insurance policy for about $350,000 worth of long-term care to pay for assisted living, home health, or nursing home expenses.