When a senior experiences a fall, they may face unexpected costs related to recovery, rehabilitation, and long-term care. Converting life insurance can be an effective way to access the funds needed for these expenses.
After a fall, the medical and care-related expenses can quickly add up. For seniors with life insurance, converting a policy could provide much-needed financial support during recovery. Converting a life insurance policy allows the policyholder to use the policy’s cash value or convert it into a form that can be used for long-term care expenses such as home health services or assisted living. This can be particularly beneficial for those who may not have sufficient savings or who need immediate access to funds. However, seniors should be aware of the potential downsides, such as losing the death benefit or high conversion costs, which can impact their overall financial plan. Before making a decision, it’s crucial to work with an insurance expert or financial advisor to ensure that converting the life insurance policy aligns with the individual’s long-term care needs and financial goals.