It’s important to explore every option when you’re looking for ways to pay for home care, Albuquerque families rely on for an aging parent or loved one. However, did you know that your loved one’s life insurance policy may have a feature that can give your loved one the extra money he or she needs?  Life insurance policies that include an Accelerated Death Benefit (ADB) may allow your loved one to receive an advance on his or her benefits while still alive. If the current policy doesn’t have an ADB, your loved one may be able to add the rider for little or no upfront cost.
Types of Accelerated Death Benefits

Life insurance companies offer different types of ADBs with varying requirements for accessing funds, including age restrictions and waiting periods. Some policies let the holder access a portion of his or her death benefits when help is needed for managing daily activities like bathing, dressing or eating. Others pay out when the holder is terminally ill or has received a life-threatening diagnosis.

How Much Money Can You Receive?

The percentage of death benefits that a person can receive with an ADB also varies from policy to policy. Most cap the amount that the holder can access at 50 percent, but there are some policies that let the holder use the full amount. For ADB riders designed specifically for long-term care, monthly payments typically range from 2 to 4 percent. If the policy’s value is $200,000, for example, the holder may be able to receive up to $4,000 each month to put toward part or live-in home care in Albuquerque.

If you have a health problem that excludes you from getting long-term care insurance, you may still qualify for an ADB rider on your life insurance policy. There are often minimal or no health screenings required. ADBs can however affect your eligibility for Medicaid and will reduce the amount of death benefits paid to your heirs.

Life insurance policies with ADB riders are just one way to help pay for the in-home care services your loved one needs to enjoy a higher quality of life. If you have additional questions about how to pay for home care, reach out to Home Care Assistance of Albuquerque today. It is our goal to help our clients find the services they need to make home care a viable option. Call 505-798-0800 and speak with a friendly Care Manager and schedule a complimentary, no-obligation consultation to learn more about our care services.

Published On: September 12th, 2014 / Categories: Home Care /