Life Insurance Solutions

Did you know that some life insurance policies can be used to provide “living benefits”? In most cases, the company will likely buy back the policy for 50-75% of its face value based on the policyholder’s monthly premiums, age, and health. A “living benefits” policy is typically available for whole life or universal life insurance, however, many policies will not provide “accelerated” or “living” benefits to policyholders unless they are terminally ill, while others are more flexible.

If you or your loved one’s insurance policy doesn’t offer living benefits, you still have options. An individual can sell their policy to a third-party company in exchange for a “life settlement” or “senior settlement,” which usually consists of 50-75% of the policy’s value. After the policy is purchased, the third-party company is responsible for paying the monthly premiums, and following the death of the original policyholder, that company receives the full value of the policy.

There is also the possibility of converting life insurance benefits directly into long-term care payments using the “life assurance” benefit or the “life insurance conversion program.”. Conversion of life insurance policies usually pays less than a life settlement – between 15 and 50 percent of the policy value – but is appropriate for policies of lesser value that may not qualify for a life settlement.  When looking into options available to you when you have a life insurance policy, it is always in your best interest to work with someone who understands the language of various policies. Your Senior Living Financial Specialist team is here to help, free of charge.