Alternative Options for Long-Term Care Leads to Life Insurance Settlements

The healthcare system and the abundance of aging Americans all at once demands the need for long-term care solutions. As of 2018, more than 50% of seniors turning 65 needed long-term care. Unfortunately, the repercussions weigh heavy on Americans as healthcare costs rise and long-term care options run slim. 

Assisted living and nursing homes are expensive as it is. Assisted living facilities average out to $4,000 per month and can increase to as much as $10,000 per month, especially if the individual requires memory care. According to a 2019 study, the average daily rate was nearly $250 for nursing homes. 

What is more concerning is that what the aging population is in need of is in-home long-term care. Sadly, this necessity has always been inaccessible to the average person, but the Covid pandemic reassured the issue and drew attention to finding a solution. 

Long-term care is often not considered until it’s too late for many Americans. A gap in the industry leaves many people without the ability to afford long-term care and unable to qualify for Medicaid. What are billions of Americans supposed to do?

Biden’s Plan

Long-term care is the most considerable expense that people face post-retirement. The pressure to save and invest has always been adamant, but the pandemic revealed that the industry itself is not prepared. Nursing homes specifically were overwhelmed nationwide, and there were not enough people to handle the capacity of people that needed to be cared for. Many folks wanted to switch to in-home long-term care, but it was not possible. 

When it comes to making the option affordable and increasing the staff within the industry, the right solution is still non-existent. Unfortunately, Joe Biden’s plan focuses solely on one segment of the population. He plans to expand federal funding for home and community-based long-term care by $400 billion, in addition to the $12 billion that was already added to Medicaid last year, resulting in the most significant increase in federal funding for home-based care in history. However, Biden’s plan does not fix the problem because the budget would only apply to those who qualified for Medicaid.

Therefore millions of other Americans still cannot afford long-term care because they don’t have enough personal funding but make too much to rely on Medicaid for coverage. They simply cannot rely on the government to care for them in their aging years, which makes long-term care planning crucial at this point. 

Life Settlements for Long-Term Care Planning

Even long-term care insurance (LTCI) policies threaten to go extinct because long-term care is so expensive. The premiums are ghastly even if they qualify. The alternative? Combining long term care policies(LTC) with life insurance policies. And what can you do with a life insurance policy? Sell it for cash, otherwise known as a life settlement. 

When you combine policies, it becomes known as a hybrid LTC-Annuity. This combination decreases the risk of spending thousands of dollars on long-term care insurance that goes to waste. Instead, your payments contribute to your life insurance policy as a combination and increase your payout as a life settlement. 

If you qualify for a life settlement, you can get back a large chunk of the money that you have been paying towards these policies over the years as a hybrid. That cash can be used to cover home-based long-term care expenses. 

Many Americans that need home-based care qualify for life settlements because they are 65 or older and have experienced a significant decrease in health. Life Insurance Settlements focuses on getting clients that need assistance help fast. A policy can be sold and the cash collected in as little as six weeks. 

If you need help with long-term care planning and want to see if your policy qualifies for a life settlement, call us today. Our qualified professionals can get your questions answered and get you, or a loved one, taken care of. 

Rob HaynieJuly 2, 2021

Rob Haynie

Mr. Haynie has been a major influence on the evolution of the life settlement industry during his almost twenty-seven year career of proactive involvement. Not only has he been directly involved in negotiating and settling several thousand contracts, he also presently serves on the board of directors of the Life Insurance Settlement Association (LISA) and is a charter member of the Association’s PPC committee, which is charged with the regulatory and legislative activities of the industry. Additionally, he has served on both the Customer Advisory Board (CAB) of ITM/TwentyFirst Services and the Advisory Board of the Insurance Studies Institute (ISI). He was named one of the top 10 most influential people in the life settlement industry worldwide. Mr. Haynie, an Alumnus of Florida State University, currently holds a Life Agent License with Viatical Settlement Broker Appointment for LIS and has spoken at almost every life settlement industry meeting or conference, published articles on the subject and has given many educational webinars as well.

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