 By 2030, when the last of the baby boomers have turned 65, nearly 1 in 5
Americans will be retirement age, according to the Pew Research Center's
population projections. Money will be a big problem for many of them, especially
if boomers develop health problems that affect their ability to live
independently, says Chris Orestis, an insurance expert and CEO of Life Care
Funding."Life Care Funding created a financial solution for seniors that own
a life insurance policy that converts the policy into a long-term care benefit
plan. This gives the policy owner the option to use their policy while still
alive to help pay for their choice of any form of senior care services," says
Orestis, a former insurance industry lobbyist who recently contributed to the
federal Commission on Long-Term Care's fact-finding mission.
"With 30 percent of the Medicaid population consuming 87 percent of Medicaid
dollars on long-term care services, we can see that's not going to be
sustainable," Orestis says. "More individuals will be forced to find their own
resources to pay for those needs. That's why states such as California, Florida,
New York and Texas are embracing legislation requiring seniors to be notified
that they can convert their life insurance policy for 30 to 60 percent of its
death benefit value. The money can be put into an irrevocable fund designated
specifically for any form of care they choose."
Orestis details more ways in which seniors might handle long-term care and
other budgetary issues:
Here's a list of establishments to check out:
www.lifecarefunding.com/blog/senior-discounts/. Restaurants,
supermarkets, department stores, travel deals and other merchants give
various senior discounts, with minimum age requirements ranging from 55 to
62. Some of these places are worth making habits, with 15 percent off the
bill at Applebee's, 30 percent off at Banana Republic and 60 percent off at
Food Lion on Mondays. Don't forget your free cup of coffee at Dunkin' Donuts
if you're 55 or older, and don't be shy -- at many of these places you'll
have to ask for the discount.
Long-term care is a matter of
survival, so use your best options. The practice of converting a life
insurance policy into a life care benefit has been an accepted method of
payment for private-duty in-home care, assisted living, skilled nursing,
memory care and hospice care for years. Instead of abandoning a policy when
they can no longer afford the premiums, policy owners have the option to
take the present-day value of the policy while they are still alive and
convert it into a long-term care benefit plan. By converting the policy, a
senior will remain in private pay longer and be able to choose the form of
care that they want, but will be Medicaid-eligible when the benefit is spent
down.
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Your "last act"
may be decades away, so plan accordingly. It makes sense to
finally enjoy your money after a lifetime of savings, but be
smart about it. Take time to organize your paperwork and create
a master file that holds things such as insurance policies,
investments, property, wills and trusts so you have your
financial picture in one place. Also, live smart today and hold
off on that new car if you don't need a new one. If your current
car is paid off and you sit tight for an additional two years,
you'll save $7,200 on a new car with $300 monthly payments.
Refinancing your home may also be a very good idea, since rates
are still hovering around their all-time lows. Get at least
three quotes and compare rates, terms and potential penalties to
make sure you're getting the best deal. Also, live healthy and
buy more fruits and vegetables and less junk food to lessen the
chance you'll need long-term care in the future.
___
Chris Orestis, nationally known senior health-care advocate and
expert is CEO of Life Care Funding, which created the model for
converting life insurance policies into protected long-term care
benefit funds. His company has been providing care benefits to
policyholders since 2007. A former life insurance industry lobbyist
with a background in long-term care issues, he created the model to
provide an option for middle-class people who are not wealthy enough
to pay for long-term care and not poor enough to qualify for
Medicaid.
[Text from file received from
News and Experts]
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