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How to Cover Nursing Home Costs

One of the toughest challenges seniors face is how to manage the high costs of long term care. 

If you or a loved one is requiring senior care and own a life insurance policy, they have the opportunity to sell their life insurance policy to a 3rd party investor for a cash settlement.  This settlement can be used to help pay long term care costs as well as any personal matters. 

Medicare unfortunately does not cover long term care unless it follows an injury or illness requiring 3 or more days of hospitalization, and even then only provides 20 days of full coverage.  

Seniors Socializing

Our job as life settlement brokers is to help assemble your case and to shop it around to the many investment groups in search of the highest offer.  The settlement value is based on how many years the investor believes one will live, and how expensive the insurance premiums are, factored in with a reasonable return on investment.  Someone with 5 years life expectancy might receive 50% - 60% of their death benefit or more, and no longer has to pay premiums on their life insurance policy.  In other words if someone has a $1MM universal life insurance policy, has 5 years to live, and the cost of insurance is reasonable, they may be eligible to receive $600,000 to help pay for long term care.  This is far better than trying to keep up with premiums while also adding the burden of long term care expenses to your budget.  


Many seniors end up letting their life insurance lapse because the premiums become too expensive to afford, and they end up losing years of premiums invested into the policy.  Instead, turn your financial burden into an asset, and let us see how much we can get for it with a life settlement.     

Costs for long term care vary a bit based on your location, but a typical nursing home, assisted living facility, or home care assistant for 8 hours a day costs about $8,000 a month, or $96,000 a year.  And what's even more staggering is that 70% of American's age 70 or older are expected to require some form of long term care, but most people do not have long term care insurance.  The average amount of time people spend in long term care is around 5 years, so if you need financial assistance in covering long term care costs, or simply can't keep up with your premiums, selling your life insurance policy might be just the right option for you. 

We're happy to provide quick feedback on your policy, just give us a call at 213.784.1481, or fill out our informal appraisal request here:

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