Life Insurance For Someone In A Nursing Home | Instant Approval

Life insurance IS available for someone living in a nursing home.

Fortunately, nursing home residents can purchase coverage that is:

  • Instant
  • Permanent
  • Without health questions

Here, you will find everything you need to know about this form of life insurance, including policy details and quotes.

Table Of Contents

  1. Overview
  2. Quotes
  3. FAQs
  4. How to Buy

Life Insurance For Someone In A Nursing Home

There are five essential facts you need to know about buying life insurance when you reside in a nursing home.

nursing home

1. Policy Type

First and foremost, it’s important to know that nursing home residents can only qualify for one type of life insurance – guaranteed issue.

A guaranteed issue policy is promised to be issued, regardless of your health or lifestyle.

Unfortunately, if you are looking for life insurance for your parents or another loved one, and they live in a nursing home, traditional life insurance is not available for purchase.

Why?

Because a nursing home resident likely has health complications, life insurance companies are only willing to issue a policy that absorbs substantial risk.

Keep in mind, however, guaranteed issue can be a godsend and will cover modest expenses like funeral and medical bills.

2. No Questions

A guaranteed issue policy has no health questions, as traditional life insurance applications do.

That means you (or your loved one) can qualify for coverage even if they are:

No health are lifestyle concerns can prevent the applicant from qualifying.

3. Level Premiums

Life insurance policies for nursing home residents have level premiums.

What is that?

Your premium payments will remain the same amount for the life of the policy.

In contrast, some policies, like those through AARP, include age bands in which your premium payments increase incrementally.

Level premiums give you or your loved one peace of mind that the amount you pay for coverage will never change.

4. Permanent

Nursing home residents’ life insurance is permanent.

What does that mean?

The life insurance policy, as long as premium payments are made, will never expire.

So, if you live another five years or one hundred years, the policy will pay a death benefit to the beneficiary.

5. Instant

Guaranteed issue policies are purchased just about instantaneously.

Within minutes, the policy is often issued.

The policy’s application process is simple, straightforward and usually completed from the comfort of your home:

  1. Communicate basic information
    • Name
    • Social security number
    • Date of birth
    • Address
    • Payment details
    • Beneficiary information
  2. Review policy details
    • Face amount (policy size)
    • Premium amount
    • Beneficaries
  3. Policy issuance
    • Once premium payment is made, policy is issued
    • Electronic and paper copies are available

Quotes For Nursing Home Residents

Consider the following sample quotes for how much a policy costs.

Keep in mind, your specific policy’s rates will depend on the carrier, as rates vary.

Nursing Home Resident Life Insurance Quotes For Male

 $5,000$10,000$15,000$20,000$25,000
40 Year Old$26.25$49.58$72.92$96.25$119.58
45 Year Old $29.17$55.42$81.67$107.92$134.17
50 Year Old$22.50$44.09$65.68$87.27$108.85
55 Year Old$29.25$56.50$83.74$110.99$138.24
60 Year Old$32.40$63.17$93.75$124.33$154.92
65 Year Old$37.55$73.09$108.64$144.18$179.73
70 Year Old$47.57$93.14$138.71$184.28$229.85
75 Year Old$63.25$124.49$185.74$246.98$308.23
80 Year Old$88.57$175.15$261.72$348.30$434.87
Monthly premiums. Rates are samples only. Subject to change.

Nursing Home Resident Life Insurance Quotes For Female

 $5,000$10,000$15,000$20,000$25,000
40 Year Old$21.67$40.42$59.17$77.92$96.67
45 Year Old$24.58$46.25$67.92$89.58$111.25
50 Year Old$17.69$34.47$51.24$68.02$84.79
55 Year Old$20.93$39.86$58.78$77.71$96.64
60 Year Old$23.57$45.14$66.70$88.27$109.84
65 Year Old$28.26$54.51$80.76$107.02$133.27
70 Year Old$36.21$70.41$104.62$138.83$173.03
75 Year Old$48.91$95.82$142.73$189.63$236.54
80 Year Old$68.65$135.12$201.69$268.25$334.81
Monthly premiums. Rates are samples only. Subject to change.

For your individual rate, fill out a free quote.

Frequently Asked Questions

Frequently asked questions and their answers.

1. What if I am terminally ill?

Life insurance for terminally ill individuals is available.

Remember, guaranteed issue life insurance does NOT ask any health questions. So, even if you have a serious illness like stage 4 cancer, you can purchase coverage.

2. Are there age restrictions?

Yes.

Guaranteed issue life insurance includes age limitations. You must be between the ages of 40 – 85 to buy this form of coverage.

Younger people also living in nursing homes.

Young people ages 31 to 64 now make up 14 percent of the nursing home population.

Department of Health and Human Services

If you are younger than 40 and reside in a nursing home, look to an accidental death and dismemberment policy.

3. Is there a specific nursing home life insurance policy?

No.

There is not a specific policy for nursing home residents.

The only policy available for purchase guaranteed issue, however.

Guaranteed issue life insurance is not limited to nursing home residents. It is for anyone who is unable to qualify for traditional life insurance, like 10 year term.

4. What is nursing home insurance?

Nursing home insurance is different than life insurance – it is a type of long-term care insurance.

This type insurance can help pay for the cost of living expenses, as opposed to a death benefit.

It’s important to note, however, if you or your loved one already resides in a nursing home, or has serious health complications, this type of coverage is almost certainly unavailable.

5. Should I list the nursing home as a beneficiary?

No.

Always list individuals who depend on you financially, like your children, as your beneficiaries. Or, consider establishing a trust.

6. Will life insurance affect Medicaid eligibility?

Sometimes.

Term life insurance (like 20 year term) does not affect Medicaid eligibility.

However, whole life insurance, like guaranteed issue, does have ability to interfere with Medicaid, namely via its cash-value.

The cash-value of a life insurance policy is counted as an asset and Medicaid establishes asset limits.

Generally-speaking, though, there are workarounds, and Medicaid usually should not stop you from purchasing life insurance.

State law differs and you will want to check in with a local elder law expert.

7. How much life insurance can you purchase?

You should know that guaranteed issue policies are modest.

They are intended to help cover end-of-life expense.

You can buy anwhere from $1,000 – $40,000.

Sometimes, policy stacking is an option. Stacking life insurance means you purchase multiple polices in order to grow the death benefit size.

8. What company should I apply with?

Nursing home residents should look at a number top-rated carriers.

To start, we recommend evaluating the following life insurance companies:

  1. AIG
  2. Gerber
  3. Great Western
  4. Mutual of Omaha

Be sure to assess multiple quotes because each carrier uses different rates.

9. What is a graded death benefit?

You should know that guaranteed issue policies include a graded death benefit.

What is that?

To protect against insurance fruad, carriers implement limitations on when a death benefit can be paid in full.

Usually, if the insured passes away within the first two years of a policy’s issuance, either the premium payments (plus interest) will be returned, or only a certain percentage of the death benefit pays.

After two years, most guaranteed issue policies pay the full death benefit.

Keep in mind, the worst case scenario is that your premiums, plus interest, are returned.

The best case scenario is that you outlive the graded period and your beneficary receives the full death benefit.

Buy Life Insurance For Someone Living In A Nursing Home

There are two important steps to take in order to quickly purchase a guaranteed issue policy.

First, be sure to have your basic information ready to be communicated:

  1. Full name
  2. Address
  3. Social security number
  4. Birthdate
  5. Beneficiary information
  6. Payment information

Next, collaborate with an independent agent. Do not apply directly with a carrier.

Why?

You will want someone advocating for you with access to multiple quotes from top-rated carriers.

To start, fill out your free quote.