Seniors often go to nursing homes if they have a medical condition that needs constant care. However, nursing homes can be quite expensive for a majority of our population.
And if you are a person who stays in a nursing home who has a loved one that is a dependent, then we understand how challenging that can be. That is especially true if you have a life insurance policy and your dependent is the beneficiary listed in that policy.
And you must be wondering if your nursing home can take your life insurance from your beneficiary. Here in this article, we will tell you that.
Can Nursing Home Take Your Life Insurance From Your Beneficiary?
The short answer to that is no. Your nursing home cannot take the life insurance payout meant for your loved ones named on your policy. So it is fortunate for you and your beneficiary as your beneficiary will still receive your life insurance payout once you pass away.
Nursing homes can cost a lot for people who are staying in them. A nursing home can cost somewhere between $7,000 to $8,820 per month.
The costs still depend on many factors such as staying in a semi-private or a private room. Fortunately, the nursing home where you stayed cannot claim the life insurance payout that your loved ones will receive once you pass away. That is, of course, given that you have a beneficiary listed on the policy.
When a Nursing Home May Be Able Get Life Insurance Money
But is it still possible for the nursing home where you stayed to make a claim on your life insurance policy’s payout? Well, the answer to that is yes, it is still possible.
As previously mentioned, your nursing home cannot claim your life insurance payout “given that you have a beneficiary listed on the policy”. But it is still possible for the nursing home to take your life insurance payout if you do not have a listed beneficiary on your policy.
Normally, if you do not have a beneficiary listed on your life insurance policy, the death benefit will proceed to your estate once you pass away. But if you have an outstanding debt to the nursing home you once stayed in, they may be able to file a claim on the money that you owe them from your life insurance death benefit.
And not just the debts you owe the nursing home, but many of your debts, in general, may claim your life insurance death benefit if you do not have a beneficiary on your life insurance policy. But the laws regarding this vary from state to state.
So, if you have an outstanding debt in your nursing home, they cannot file a claim for your life insurance death benefit as long as you have a beneficiary. But if you do not, it is possible for them to collect your debts through your payout.
