The number of searches on SNAPforSeniors by people seeking senior care with a budget of less than $1000 per month has increased exponentially month over month since November, 2008. Given the number of older Americans with shrunken “nest eggs” and the current depressed real estate market, it is no surprise that seniors with little or fixed incomes are desperately seeking affordable senior housing options .

According to the 2006 Overview of Assisted Living, a research report jointly produced by the National Investment Council and four senior housing trade associations, family members often help cover expenses- subsidizing more than one-third of residents in assisted living or nursing home facilities. However, with so many Americans impacted by a soured economy, record low stock market, surging unemployment and pressing living expenses, many families can barely keep their own financial heads above water. Many families no longer have the means to assist with funding their parents care as they might of in the past.

I recently learned of an 82 year old woman named Ruth from Florida whose wealth was obliterated by the Maddoff scandal. Within a few weeks of the Maddoff’s ponzi scam, Ruth had a mild stroke and is no longer able to live independently without care. In a fleeting moment, her health and financial security had changed dramatically with all her liquid assets gone and no available reserves to pay the monthly fees for the assisted living or 24-7 home care she needs.  Ruth does have equity in real estate, but it isn’t likely that the property could be sold in a reasonable time for her to cover her immediate care needs. A Certified Senior Advisor suggested Ruth use a life settlement as a potential financial instrument to provide the funds for the appropriate housing with the level of care she needs.

A Life Settlement is the sale of a life insurance policy by the policy owner while still alive, not a loan, which can act as a funding “bridge” to cover the costs of senior care. Policy owners are no longer responsible for paying premiums once a Life Settlement is complete and are under no obligation throughout the process.  Over 90 Million Americans age 65 and older own life insurance policies worth over $500 billion. In less than ninety days, Ruth had learned that her million dollar life insurance policy taken out thirty years ago had a life settlement value of $472,000. The policy could now be sold to a third party through companies like Life Care Funding Group, a licensed brokerage firm who caters to life settlement. Because she was able to liquidate her life insurance policy through a life settlement; Ruth is now receiving the care she needs in the assisted living community that she preferred, without the fear she would never be able to afford making this important move.

Many senior serving professionals, as well as families with dependent parents in need should investigate the feasibility of tapping this valuable asset to help fund cash for home health or long term care communities. The typical eligibility requirements for a life settlement are:

• Age 65 or older (younger ages can be considered based on health) with all forms of life insurance can qualify.
• Life Insurance policy must have a minimum face value (death benefit) of $50,000.
• Life insurance policy in effect for at least 24 months.
• No limits on the amount of money raised through a Life Settlement.
• Lump sum payment and no longer responsible for paying premiums.

Consumers can quickly assess their eligibility by going to www.seniorcarefunding.com and completing a questionnaire with their personal information. Within 24 hours, a professional will be in contact to conduct additional screening and provide guidance on next steps. A life settlement can be a life-saving financial instrument for families with compromised finances and the need for cash to pay for home health and senior housing with care. On a happy note, Ruth is learning to cope with her diminished abilities, has made new friends and has peace of mind that she is now safe and financially secure in her new living space.