LTC “Assurance Benefit” Plans

brooks

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Anyone know of long term care “Assurance Benefit” benefit plans?

I was thumbing thru 3in4 guide when I came across this method of LTC funding.

"The Supreme Court case of Grigbsy vs. Russell (1911) established a life insurance policy owner’s right to transfer or convert the use of an insurance policy. For families with the need to pay for long term care, they can use their legal right to convert an in-force life insurance policy to enroll in a long term care “Assurance Benefit” benefit plan and are then able to immediately fund their care through monthly payments. Providers of long term care services such as nursing homes, assisted living communities and home health agencies have been quick to embrace this alternative form of payment. State governments too are realizing that there is tremendous value to be found by converting life insurance policies to help pay for the costs of long term care."

One of the most frequent objections to LTCI is ..."what if I never need it?" If LTC never comes into play ... under this Assurance Benefit scenerio ... the life policy would be left intact.

This funding approach appears viable. There has to be some downside.
 
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