Full time, in house care for a person suffering from dementia or Alzheimer cost an astounding amount every year. Medicare does not cover long term care and Medicaid only applies to those with little or no money which often leaves the family to pay the cost. However, if a patient has a life insurance policy, they have the option to sell the policy on an open market to provide instant liquidity to pay for care. There is a downside though, the immediate payout will be for a percentage of the policies’ face value and the seller must continue to make premium payments to maintain the coverage. But a family that needs money now should carefully explore a settlement as it offers, in certain circumstances, the best option to care for a loved one in their dying days without wrecking the survivor’s finances.
See Jeff Hallman & Scott Thomas, Families of Alzheimer’s patients turn to life settlements, Life Health Pro, June 25, 2015.
Special thanks to Jim Hillhouse for bringing this article to my attention.
