How To Pay For Assisted Living With Your Life Insurance Policy

Shawn Plummer

CEO, The Annuity Expert

The cost can be prohibitive if you have an elderly loved one who needs assisted living care. The average monthly rate for a private room in an assisted living facility is now over $5,000, which is only going up. This guide will explore an option to pay for assisted living that you may not have considered: your life insurance policy.

How Can I Pay For My Assisted Living Facility With My Life Insurance Policy?

A life settlement is a way to sell your life insurance policy for cash. For example, if you have a whole life or universal life policy that you no longer need or can’t afford, you can sell it to an investor through a life settlement broker. The investor will then pay the premiums and be the beneficiary when you die.

What Are The Benefits Of Using Your Life Insurance Policy To Pay For Assisted Living?

There are several benefits to this arrangement. First, you will get a lump sum of cash that you can use to pay for assisted living or any other expenses. Second, the life settlement will be paid out tax-free. And third, the investor assumes the risk of your death, so your family is not financially responsible if you die sooner than expected.

What Are The Drawbacks Of Using Your Life Insurance Policy To Pay For Assisted Living?

There are also some drawbacks to life settlements. First, you will no longer have the life insurance policy and will not be able to leave a death benefit to your family. Second, the life settlement may be less than the face value of the policy, so you may not get all your money back. Third, depending on your life expectancy, you may not receive the desired offer.

The Best Plans For Life Settlement

If you are considering a life settlement, shopping around and comparing offers from different investors is vital. Before signing any contracts, you should also understand the terms and conditions. And finally, be sure to consult with a financial advisor to make sure that a life settlement is the best option for you and your family.

The Next Steps

If you’re considering assisted living, it’s essential to understand all of your options. One option that may be available to you is a life settlement. A life settlement is when you sell your life insurance policy for more than the cash value. This can provide much-needed funds to pay for assisted living or other expenses. Next steps: Talk to an expert about your specific situation and get a free quote on how much your policy could be worth.

Request A Quote

Get help from a licensed financial professional. This service is free of charge.

Contact Us

Shawn Plummer

CEO, The Annuity Expert

I’m a licensed financial professional focusing on annuities and insurance for more than a decade. My former role was training financial advisors, including for a Fortune Global 500 insurance company. I’ve been featured in Time Magazine, Yahoo! Finance, MSN, SmartAsset, Entrepreneur, Bloomberg, The Simple Dollar, U.S. News and World Report, and Women’s Health Magazine.

The Annuity Expert is an online insurance agency servicing consumers across the United States. My goal is to help you take the guesswork out of retirement planning or find the best insurance coverage at the cheapest rates for you. 

Scroll to Top