Many people believe they will never need long term care plans. Although we don’t like to discuss it often, the truth is investing in a life settlement is important as we grow older. The younger and healthier we are when we buy insurance policies, the lower the premium payments will be. Also, we have more options when we purchase insurance earlier. However, if you are too young and/or too healthy, you may not qualify for the long-term care plans. So, what do you do if you, in fact, need long-term care and haven’t planned ahead?
Consider the option of converting a life insurance policy into a long-term care benefit plan or medically immediate annuity. If you are a person who owns both long-term care and life insurance, you can convert the life policy into either option to maximize your care options.
Do understand that this is a financial responsibility. Around 88% of life insurance policies are never paid out because they are abandoned before the owner passes away. However, this often happens without the owner realizing, allowing them to miss out on benefits of cash-out payments.