As I approach the second half of my 50s, I’m starting to think about things like long-term care insurance. It may be a little late, given the likely high cost of my premiums at this point, but it’s something I plan to look into. Others have begun cashing out their life insurance plans to pay for care.
Through some life settlement products available today, life insurance holders are selling their policies and using the proceeds to finance long term care needs.
One company that offers the option is finding clients who sell their life insurance are using the proceeds—overwhelmingly—to pay for immediate medical or healthcare needs, long term care services or to increase retirement income.
“We’ve seen a steady shift in the use of life settlement proceeds to address healthcare and long term care needs over the past few years,” said Alan Buerger, CEO and co-founder of Coventry. “The downturn of the economy combined with the increase in the number of seniors in need of long term care and rising healthcare costs is a major reason people are selling their policies.”