Navigating the costs of senior living can be stressful at times, but knowing there are funding choices available can provide a sense of relief. This blog discusses two insurance options commonly used to help pay for senior living care.
Two insurance options that can help pay for senior living
Life insurance conversion and long-term care insurance policies can help cover senior living expenses. Learn the definitions of each, how they work, and what to expect.
Life insurance conversion
You can convert an in-force life insurance policy into a long-term care benefit plan to help pay for your care needs. The policy is transformed into a pre-funded financial account that disburses a monthly benefit for home care, assisted living, skilled nursing, and hospice expenses.
A life insurance conversion is a Medicaid-qualified asset because the original owner no longer holds the policy. Therefore, it won’t count against them in the Medicaid spend-down process. Instead, the life insurance policy transfers from the original owner to an entity that acts as the benefits administrator.
The benefits administrator is responsible for paying the monthly premiums to the insurance company and paying the previous policyholder a series of monthly payments based on the value of their policy.
Pros of life insurance conversion:
- You can convert any type of life insurance plan, including whole, term, or universal.
- Monthly payout amounts are adjustable based on how many months you want to receive payments.
- A life insurance conversion is considered a long-term care benefit plan comprised of private pay dollars, which means the funds can be used to pay for any kind of care.
- A special fund is set aside for future funeral expenses.
Cons of life insurance conversion:
- Monthly payments are made directly to a long-term care provider, not the previous policyholder, so it’s important that you convert your policy when you have an immediate need.
- Individuals with smaller or very large policies may be better off holding onto their plans or exchanging them for the cash surrender value.
You can expect a typical enrollment to take 30 to 45 days, but once the policy is converted, the monthly payments begin immediately. Additionally, there are no application fees or obligations to apply.
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Long-term care insurance
Long-term care insurance can help pay for the costs of numerous care services that aren’t typically covered by health insurance, Medicare, and Medicaid, including:
- Home care
- Adult day services
- Assisted living
- Memory care
- Skilled nursing
- Respite care
- Hospice
To receive benefits from your policy, you must have an assessment that determines you need help with two or more activities of daily living (ADLs) or have cognitive impairments. Then, your insurance company will approve a plan of care, followed by an elimination period of anywhere from 30 to 90 days.
You can expect your policy to pay for care service costs up to a pre-set daily limit until your lifetime maximum is reached.
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Feel at Home at Frontida Assisted Living
Frontida Assisted Living values transparency and trust in each of our Wisconsin communities, and our team is ready to answer your questions, offer support, and provide resources to help you make a confident and informed decision for your future care.
Our compassionate team strives to create a sense of community and purpose for each resident through personalized programming, life-enriching activities, and special events.
Each Frontida community maintains a garden to incorporate seasonal fresh fruit and vegetables into our menus. We encourage healthy choices and well-balanced meals.
Learn how we care for our residents:
- Private suites, bedrooms, and companion rooms
- Fully accessible, private bathrooms
- Spacious living rooms and engaging indoor recreation areas
- Cozy fireplaces and open-plan seating in living spaces
- Beautifully maintained outdoor areas
- Access to a trusted network of physicians, nurses, podiatrists, and therapists
- Delicious, home-cooked meals and snacks
- 24-hour personal care and supervision
- Comfortable spa and salon (in specific locations)
- Dedicated memory care communities
- Specialized mental health care communities
- Housekeeping and laundry services
- Individualized care plans
- Life Enrichment Coordinators to plan and schedule meaningful activities for all residents
- Registered Nurse to oversee the health and wellness of each resident
We value honesty, trust, and open communication to build relationships with our residents and their loved ones. Together, we form a partnership to ensure your loved one lives a fulfilling life, feeling a sense of belonging and purpose.
When you’re ready, contact any of our 11 Frontida assisted living and memory care communities to gather more information, or to set up a personalized tour. We’re here for you whenever you need us.
We understand that transitioning into assisted care can be an emotional, stressful and often confusing journey. That’s why we’re dedicated to helping you and your family navigate the complex world of care. Download our free guide: “Just the Facts: A Guide to Assisted Living” to learn more.
