One line in the financial-resources section of your admission packet — does the resident own life insurance with a death benefit over $100,000 — is the entire operational change this page is asking for. Everything else follows from whether that question gets asked.
Business offices track the assets families volunteer: a bank balance, a pension, a house that may or may not sell. An old permanent life policy is different. Nobody volunteers it, because the family has stopped thinking of it as money. It sits in a drawer, premiums quietly draining a checking account the resident no longer manages, until the coverage lapses and the value disappears. In a Colorado facility working a private-pay-to-Medicaid conversion, that is one of the few remaining sources of runway.
Send us a redacted policy cover page. With the resident’s or responsible party’s permission, that one page is enough to start a free review. Initial reads typically come back in one to two business days, with no obligation to the facility or the family. Call (305) 209-7183.
In This Article
- The Admissions Question That Surfaces the Asset
- Why an Unneeded Policy Is Private-Pay Runway
- The Medicaid Angle Your Business Office Already Knows
- This Is Not a Referral Arrangement
- Colorado’s Regulatory Frame
- How a Referral Works
- What a Priceable Case Looks Like on Your Census
- Frequently Asked Questions
The Admissions Question That Surfaces the Asset
Most financial-resources sections ask about income sources, bank accounts, real property and burial contracts. Life insurance, when it appears at all, is a yes/no box with no follow-up. Three follow-ups make it useful: is the death benefit $100,000 or more, is the coverage permanent (whole life, universal life, guaranteed universal life) or convertible term, and is anyone still depending on the death benefit?
Ask it at admission and again at the annual financial review, because the answer changes. A spouse dies, a mortgage the policy was meant to cover gets paid off, or a child who was the intended beneficiary becomes financially independent. The policy that was necessary in 2004 is often surplus by 2026.
Why an Unneeded Policy Is Private-Pay Runway
A resident whose private funds run out mid-stay creates a conversion, a pending-Medicaid AR balance, and a county application on someone else’s calendar. Anything that lengthens the private-pay window before that handoff is worth surfacing.
A family’s default assumption is that a policy is worth either nothing (if they cannot keep paying) or its cash surrender value (if they can find the statement). The secondary market is the third option, and it is the one nobody mentions. Commonly cited market ranges run roughly 10% to 35% of face value, and the GAO’s 2010 study (GAO-10-775) found settlement proceeds ran several times cash surrender value in the transactions it reviewed. A $250,000 policy the family was about to let lapse is not the same conversation as a $250,000 policy that produced a real number.
The Medicaid Angle Your Business Office Already Knows
Long-term care Medicaid in Colorado runs through Health First Colorado — the Elderly, Blind and Disabled category and the long-term care waivers — against a $2,000 individual countable-asset limit as of 2026. Once total face value across a resident’s policies exceeds the small disregard commonly set at $1,500, the cash surrender value counts as a resource. Verify current treatment with the Department of Health Care Policy and Financing.
That means the policy will surface eventually, at verification, whether or not anyone asked at admission. Surfacing it early gives the family time to get advice and gives your office a realistic picture of the conversion date. Colorado processes these applications through county departments of human services, and timelines vary noticeably by county, so early is worth more here than it would be in a centralized state.
| Admission-packet question | What a ‘yes’ tells the business office |
|---|---|
| Does the resident own life insurance? | An asset exists that will surface at Medicaid verification |
| Is the total death benefit $100,000 or more? | The policy may be priceable in the secondary market |
| Is it permanent coverage or convertible term? | Term with no conversion right generally has nothing to sell |
| Is anyone still depending on the death benefit? | If no, the family has a real choice to make |
| Who is paying the premiums today? | Identifies lapse risk and who has actual control |
| Has the family requested a cash surrender value statement? | Needed for Medicaid verification regardless of the disposition |
This Is Not a Referral Arrangement
Say it plainly in your own materials: the facility is not endorsing a company, is not compensated, and is not advising the family on what to do. What the business office provides is neutral education — a handout explaining that a life insurance policy is personal property with three possible dispositions (keep it, surrender it, or sell it), and that a free valuation exists.
The family makes an independent decision, ideally with their own attorney or planner. Document that the information was provided and that the family was told to seek independent advice. Nothing on this page is a fee-sharing offer, and Pine Lake does not pay facilities for referrals.
Colorado’s Regulatory Frame
Transactions involving Colorado residents are governed by Colorado’s viatical settlement provisions at C.R.S. Title 10, Article 7, administered by the Colorado Division of Insurance. Those provisions cover licensure of providers and brokers, required written disclosures to the policy owner before closing, and a statutory rescission period after funding. A family that wants to check a company’s standing can do it directly with the Division.
Pine Lake Life Solutions provides education and a free policy review. Nothing here is an offer to purchase a policy, and nothing here is legal, tax or financial advice to a resident or a family.
How a Referral Works
With the resident’s or authorized representative’s permission, the office sends only the redacted policy cover page. Nothing else. That page tells us the carrier, product type and face amount, which is enough for a preliminary read in roughly one to two business days.
If the family wants an indicative range, four documents complete the picture: the policy cover page, a current in-force illustration, the most recent carrier statement, and a signed HIPAA authorization. A standard file runs roughly 60 to 120 days from complete documents to funding. The review is free and carries no obligation for the facility or the family, and the resident stays in control of the policy the entire time.
What a Priceable Case Looks Like on Your Census
Insured roughly 70 or older, or any age with a material health change since the policy was underwritten. Death benefit of $100,000 or more. Permanent coverage or convertible term still within its conversion window. That is the whole screen.
Two common misses: a resident with several small policies that add up to six figures — policies are priced individually, so three $40,000 policies are usually not one $120,000 case — and employer group life that terminates on separation and cannot be sold. Knowing which files will not price saves the family a disappointing phone call.
This page is educational only. It is not legal, tax or investment advice, and it is not an offer to purchase any policy. Pine Lake Life Solutions provides a free policy review; your client decides what to do with the information.
Frequently Asked Questions
Is the facility taking on liability by handing a family this information?
The framing is what controls the risk. Provide neutral education about the three dispositions of a policy, tell the family to get independent advice, and document that you did. Do not recommend a company, do not advise on the transaction, and do not accept compensation.
Does Pine Lake pay facilities for referrals?
No. There is no referral fee, no revenue share and no marketing arrangement offered to facilities. The policy review is free to the family, and the facility has no financial interest in the outcome.
Why should the business office care at all?
Because an unneeded policy is one of the few remaining sources of private-pay runway, and because the cash surrender value will count against the $2,000 Medicaid asset limit at verification either way. Finding it at admission is easier than finding it during a pending application.
What if the resident has dementia or cannot sign?
Then authority matters. A power of attorney holder or court-appointed guardian may act, subject to the scope of the instrument and, for a guardian, potentially court approval. That is a legal question for the family’s attorney, not for the business office.
How much can a family expect from a policy?
There is no fixed answer. Commonly cited market ranges are roughly 10% to 35% of face value, and the GAO’s 2010 study found settlement proceeds averaged several times cash surrender value. Actual pricing depends on age, health, premium load and product type.
How long does the process take relative to a Medicaid application?
A standard settlement file runs roughly 60 to 120 days from complete documents to funding. Since Colorado applications are processed by county human services offices with variable timelines, families should map the two calendars together rather than assume they align.
What exactly do we send to start a review?
Only the redacted policy cover page, and only with the resident’s or authorized representative’s permission. That single page supports a preliminary read, typically within one to two business days.
Can a policy already assigned to a funeral home be sold?
Generally not while the assignment stands, and those policies are usually small final-expense contracts well under the $100,000 threshold. Those files belong in the burial-contract conversation instead.
Find out what your policy is worth — free, confidential, no obligation.
A 15-minute educational review covers your eligibility, every alternative, and a realistic view of what each path would net you.
Related Reading
- What Policies Qualify For Life Settlement
- Cash Surrender Value Life Insurance
- Colorado Medicaid Asset Income Limits
- Life Settlement Licensing Colorado
- How It Works Policy Options
Pine Lake Life Solutions does not purchase life insurance policies and does not provide legal, tax, or investment advice. Information provided is for educational purposes only. Eligibility for any option, including life settlements, is not guaranteed and depends on individual circumstances, policy terms, underwriting, and market conditions. Consult independent legal, tax, or financial professionals before making decisions regarding a life insurance policy.