Life settlements can help clients meet long-term care funding needs

Clock October 12, 2021


The growing need for planning and paying for long-term care starts with a conversation. Exploring the funding options available to your clients is the first step toward ensuring their long-term care needs are met.

According to the U.S. Department of Health & Human Services, Americans turning 65 today have a 70% chance of needing some form of long-term care services and supports during the remainder of their lives. Yet planning for this is often completed too late, or not at all.

A mother and daughter discussing long term care options

In 2020, 45% of the applicants that applied for long-term care insurance between the ages of 70-74 were declined coverage.

The statistics paint a more dire picture for those aged 75+. Between 2012-2019, members of this group were declined long-term care coverage due to age and health an average of 50% of the time.

One way to financially plan for, and protect against, the increasing costs associated with long-term care and healthcare in retirement is with the proceeds from the sale of a life insurance policy, known as a life settlement.

Life settlements provide clients with a significant lump sum payment that can help secure additional financial security. Once the transaction is complete, the funds are immediately available for use in covering existing and future long-term care expenses, or any other expenses or needs the policyholder may have.

And just as awareness and utilization of life settlements are increasing, innovations in the life settlement marketplace have increased the number of seniors who may be eligible to sell their policies. Traditionally, only insureds with a significant change to their health were able to benefit from life settlements. Today, however, even healthy insureds may be able to qualify and take advantage of the value that a life settlement provides. 

November is Long-Term Care Awareness month. Now is a great time to start conversations with your clients about long-term care costs, and strategies to cover those expenses. Understanding the value of your clients’ policies is a critical piece of helping them make an informed decision about their life insurance. Use the life settlement estimate calculator below to provide your clients with the information they need to make an informed decision about their life insurance policies.

Life Settlement Estimate Calculator