- Life Care Funding -
Using your existing Life Insurance to fund your Long Term Care Needs
Life Resource Planners of the Treasure Coast 1717 Indian River Blvd. Suite 301
Vero Beach FL 32960
(772) 567-7970 ext. 101
The information found on this website is gleaned from readily available public sources and is for educational purposes only. It is NOT to be considered financial or legal advice. Consult with an appropriate professional before making important financial or legal decisions.
Life Care Funding
How it Works
A Life Insurance policy can be converted into a Long Term Care Benefit Plan in as little time as 30 days to start making monthly, tax-free payments directly to the care provider of choice:
No fees or obligations to apply and enroll
Most types of life insurance qualify
All forms of care covered
Monthly benefits are flexible
No more premium payments
Tax-free benefit payments
Medicaid qualified spend-down
See If You Qualify
Convert a life insurance policy into a monthly benefit for Senior Care in as little time as 30 days
All forms of Senior Care qualify: Home Care, Assisted Living, Memory Care, Nursing Home, and Hospice
Term Life, Universal Life, Whole Life and Group Life policies all qualify
If you have an existing Term, Universal, Whole or Group life insurance policy, you may be eligible to set up a Long Term Care Benefit Plan. To fund the Plan, the insurance policy will be sold and the proceeds will be deposited in an irrevocable, FDIC insured Benefit Account. Importantly, the sale of the life insurance policy is executed in a manner intended to comply with state specific Life Settlement regulations.
Once the sale is complete, monthly tax-free payments will be made automatically from the Benefit Account to the care provider of the family’s choice. From the time that the family decides to accept an offer for the insurance policy, payments to the care provider can begin in as little time as 30 days. If care needs change, the family can simply update the account instructions and payments will be directed to the new care provider. The amount of the payment can also be changed at the family’s direction.
Each account provides a tax-free final expense payment to help with funeral costs. In addition, if there is any remaining account balance when the person receiving care passes away, the balance will be distributed tax-free to that person’s designated beneficiaries.
A Long Term Care Benefit Plan is a unique, tax advantaged financial option that extends the time a person would remain private pay and delays their entry onto Medicaid. All health conditions are accepted, there are no wait periods, no care limitations, no costs to apply, no requirement to be terminally ill, and there are no loans or premium payments. Policy owners use their legal right to convert an in-force life insurance policy to enroll in the Medicaid qualified Benefit Plan, and are able to immediately direct tax-free payments to cover their senior housing and long term care costs.
The Long Term Care Benefit is an accepted form of payment by every Home Care, Assisted Living, Memory Care, Nursing Home, and Hospice company in the United States. Visit ourTrusted Partners page to search for the best Senior Care providers working with Life Care Funding in every state.
*Please note that the tax treatment of the proceeds from the sale of a life insurance policy will depend on many factors, including but not limited to who owns the policy, the health of the insured, the use of proceeds, the size of the estate and the state in which the policy owner lives (for purposes of state taxation). This material does not constitute tax, legal or accounting advice; and it cannot be used by any taxpayer for the purpose of avoiding any IRS penalty. Anyone interested in selling a life insurance policy in order to fund Long Term Care Benefits should seek professional advice based on his or her particular circumstances from an independent tax advisor.