When your elderly loved one requires more care than you can provide on your own, it may be time to consider your options. For many families, figuring out how to pay for in-home senior care in North Houston is one of the greatest hurdles. However, you may be able to convert your senior loved one’s life insurance policy to pay for his or her care while he or she is alive.
Long-Term Care Benefit Plan
Any active life insurance policy–whether it’s a universal, term, whole, or group policy–can be converted into something called a Long-Term Care Benefit Plan, which is a pre-funded account that disburses a stipend each month to pay for your loved one’s care. Unlike the life insurance policy, this account is a Medicaid-qualified asset, so it will not keep your loved one from qualifying for Medicaid benefits.
Converting the life insurance policy will transfer ownership to an entity that acts as an administrator, taking control of the policy from the current policyholder. The administrator will then pay monthly premiums on the life insurance policy to the insurance company while giving the previous policyholder payments based on the policy’s value. These payments can be used to pay for hourly or live-in senior care in North Houston.
Converting a life insurance policy into a long-term benefit plan comes with many advantages. It allows your loved one to age in place by providing money to pay for a caregiver, or it can be used to make up for a shortfall in health care costs. Your loved one will no longer pay monthly premiums on his or her life insurance policy, and the payout will not count against him or her in qualifying for Medicaid coverage. Keep in mind that the monthly payments must be made directly to a long-term care provider. This means it’s best to convert the life insurance policy when your loved one has an immediate need for care of some type.
Learn more about senior care in North Houston from Home Care Assistance. Our North Houston caregivers are expertly trained, experienced, thoroughly vetted, and available part-time or 24-hours a day. All of our care services are backed by a 100 percent satisfaction guarantee, and we will never ask you to sign a long-term contract. For more information, call a dedicated Care Manager at 832-412-1345 and schedule a free in-home consultation.