New York Gov. David Paterson (D) recently signed a bill that will let individuals use part of their life insurance policies to pay for nursing home or other long-term care costs, according to the local news site, Westchester.com.
“We’re supportive of it as it gives seniors more flexibility in planning for their future,” Richard Herrick, president and CEO of the New York State Center For Assisted Living, told McKnight’s.
The law expands the way the state defines the term “life insurance,” the outlet reported. As written, the bill lets seniors use life insurance to cover nursing home costs once they’ve been a resident for three months. State lawmakers say the bill will lessen the state’s reliance on Medicaid and help the estimated 2 million New Yorkers who will need skilled nursing services by 2015.
