Care is Expensive!
10 Ways to Pay for Care: Life Insurance Settlements
Turning Life Insurance Into Long-Term Care Dollars: How Life Settlements Can Help Families Pay for Care
By Chris Orestes, President of Retirement Genius
When it comes to paying for long-term care, families are often caught off guard. Costs rise quickly, options feel limited, and many assume that if they don’t have a long-term care insurance policy, they’re out of luck.
But here’s a financial strategy that many seniors and families don’t realize they already have access to:
Your existing life insurance policy can be used as an asset to help pay for care—through what’s called a Life Settlement.
At Retirement Genius, we help families across all 50 states understand and use this powerful option. Let’s explore how it works and why it’s become one of the most practical and flexible ways to fund long-term care.
A Life Insurance Policy Is More Than a Policy—It’s an Asset
Most people think of life insurance as something that only benefits loved ones after death. But in reality, a life insurance policy is a financial asset—one that you own outright, just like your home.
Think about it:
You make payments on your home for years, and when you’re ready to move on, you don’t abandon it—you sell it for its market value.
The same logic applies to life insurance. After years of paying premiums, your policy has real market value. You don’t have to “drop the keys” and walk away by letting it lapse or surrendering it for little to nothing. Instead, you can sell it through a Life Settlement and receive a lump sum of cash—a percentage of the policy’s death benefit.
What Is a Long-Term Care Life Settlement?
A Life Settlement allows a policyholder to sell an existing life insurance policy to a licensed buyer in exchange for an immediate cash payment. That payment can then be used to fund long-term care expenses—home care, assisted living, memory care, nursing home costs, or any other form of care.
Here’s what makes it so impactful:
- It’s your legal right to sell a life insurance policy you own.
- It costs nothing to explore or complete a Life Settlement.
- It’s fast—typically completed within 60–90 days.
- It’s often tax-free when proceeds are used for qualified care expenses.
- It’s Medicaid-qualified, meaning the funds are treated as a private-pay spend-down.
Why This Option Matters Now More Than Ever
To understand the scale of the opportunity, consider this:
- There are roughly 335 million Americans, but only about 7.5 million long-term care insurance policies in force today.
- Meanwhile, there are over 260 million active life insurance policies nationwide.
That means tens of millions of seniors already hold a powerful, often-overlooked financial resource—their life insurance policy.
And it’s not just a niche option anymore. Life Settlements have become a mainstream financial strategy for seniors. You’ve likely seen the commercials—right alongside ads for reverse mortgages, Medicare Advantage plans, and retirement solutions.
In 2024 alone, more than $4.5 billion in life insurance policies were sold through life settlements, most by seniors age 65 and older who needed to fund care or manage medical expenses.
Who Qualifies for a Life Settlement?
Life Settlements are best suited for:
- Adults age 65 or older
- Those experiencing health challenges or chronic conditions
- Policyholders with a life insurance death benefit of at least $100,000
Eligible policy types include:
- Term life insurance
- Universal life
- Whole life
Smaller “final expense” policies (e.g., $10,000 or $20,000) usually don’t qualify, but once a policy has a $100,000+ death benefit, it becomes a candidate for settlement.
The Process: Simple, No-Cost, and Fast
While each case is unique, most Life Settlements pay out between 5% and 50% of the policy’s death benefit.
For example:
A senior with a $100,000 life insurance policy could receive between $10,000 and $50,000 in cash. That’s money they can immediately use to pay for care—without waiting, without loans, and without continuing to pay premiums.
How Much Can You Receive?
- Assessment: Submit your policy for review—there’s no cost or obligation.
- Valuation: The policy is evaluated based on your age, health, and benefit amount.
- Offer: You receive an offer from the secondary market.
- Payment: Once approved, you receive your funds—typically within 60 to 90 days.
There are no fees and no hidden costs to the policyholder. You’re simply selling an asset you already own.
Why It’s a Win-Win for Families and Care Providers
This program has become a lifeline for families facing urgent care needs. We at Retirement Genius have partnered with many respected care organizations—including Home Instead, Amada Senior Care, Right at Home, Care Patrol, Comfort Care, A Place for Mom, and Brookdale Senior Living—to help their clients access care through Life Settlements.
It’s a simple, powerful way to turn an existing asset into private-pay dollars—delaying or even avoiding the need for Medicaid altogether.
Key Advantages of Using a Life Settlement for Care
- ✅ No cost or obligation to the policyholder
- ✅ Fast process (usually 60–90 days)
- ✅ Funds are often tax-free if used for long-term care
- ✅ Qualifies as a Medicaid spend-down
- ✅ Can be used for any form of care—home care, assisted living, or nursing care
- ✅ Helps families retain choice and independence
The Bottom Line: Awareness Is Everything
As I often say, the most ironic part of senior care is how rarely we talk about the most important question:
“How are we going to pay for it?”
Families deserve to know their options—and professionals across the care industry deserve to have these tools in their toolbox. You don’t need to be an expert to help a family start this conversation. You just need to be aware that solutions like Life Settlements exist, and that they can make an immediate, meaningful difference.
If you or a family you serve has a life insurance policy and needs help paying for care, visit RetirementGenius.com.
We’re here to help you explore your options, simplify the process, and unlock the value of what you already own—so you can focus on what matters most: care, dignity, and peace of mind.
If you want to continue this conversation or need guidance, I’m here.
Chris Orestis
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Our country is entering a new chapter, one we have never seen before… over 100 million people are 50 years of age or older, and the need for care is going to be more and more prevalent. We are dreaming of a nation where aging and care are understood and become part of our normal conversations with family.
To make this a reality, we need your help!