How to use a life insurance policy to pay for long-term care?

If longterm care means Medicaid and the policy has cash value, then it will need to be cashed in to help pay for care or prepay a funeral. What this person needs to do is contact the insurance company and ask for a report showing what her cash in value is. I doubt in 5 yrs she has accumulated enough to pay for her care.

I am surprised this kind of policy was offered. The premiums go up as you age. At 83 her premiums must have been extremely high. We had a similar policy on my husband but cashed it in when the kids were grown. The premiums would have been extremely high by the time my husband retired. Husband had rolled over a college policy. It bought 60k coverage. It would have paid our Mortgage and gave me some money to help me get back on my feet. They are not good policies when the economy is not good and interest rates go down.

Call the state Division of Insurance. Whole life insurance policies can be cashed n, but they are never for the face value.

I'd urge you to call the company that sold the policy. The insurance industry has become VERY complicated. Policies have riders that offer additional coverages so it is impossible for anyone here to accurately respond. Some policies waive premiums when the insured needs long term care. Others allow you to access the cash values without penalties if the insured needs long term care. The actual policy spells out the coverages --- though you may need help to interpret it. Good luck.