The number of life insurance policies abandoned by seniors these days is staggering. Most are forced to do so in order to become eligible for Medicaid when entering a long term care facility. Insurance companies count on this and collect huge profits as a result of the value of these unclaimed benefits. To protect themselves, seniors need to learn about their rights as life insurance policy owners to discover their options before these critical times arise. A need for consumer protection in this matter has arisen due to the sheer number of baby boomers now entering the age requiring elder care.
Many seniors and their families have found a beneficial option in converting their life insurance policy into a Long Term Care Benefit Plan. This works by realizing that your policy has the same legal property rights as other assets, and using the value to help pay for senior care needs. With state and federal budgets under pressure to reduce cost, policy conversion has become increasingly popular, leading many state to pass legislation help inform consumers of this process. Assisted living and nursing home communities are also in support of this option as another means of funding long term care expenses.
Lack of awareness by consumers is fundamental to problems facing seniors and their families when the need for elder care arrives. The National Conference of Insurance Legislators (NCOIL) has brought us the Life Insurance Consumer Disclosure Model Law which provides the multiple options that are available to owners without allowing the policy to lapse. Producers eSource sat down with Chris Orestis, CEO and founder of Life Care Funding, to discuss these and other senior issues surrounding life insurance conversion. Chris believes that educating senior and their families is the best way to help them make informed decision in these important matters. Read his entire article with Producer eSource by clicking here.