Long-Term Care with Life Insurance
While the idea isn’t new, one company is taking the prospect of trading in a life insurance policy for cash to a whole new level. Chris Orestis believes that he has developed
the ideal solution for families and individuals who require some level of long-term care and who have life insurance policies that have matured. There have been many companies that have been buying out life insurance policies from people for many years, but while they offer cash for the policy after a specific maturation date, Chris’s company, Life Care Funding holds onto and continues paying the premium payments and then collects on the death benefits but established a prefunded and irrevocable benefit account and then hires administrators to oversee the accounts and make sure that the long-term care providers that the individual hires are paid.
One of the cornerstones of Mr. Orestis’ vision was to help elderly patients who required extra care in their later years in life get the help they needed. He found that they tended to struggle to afford long-term care, such as nursing home care or home health care. The company was founded in 2007 and focused on senior residential communities and nursing homes, but is now branching out to help other elderly patients who require some level of help.
Chris also believes that he can include this level of assistance in long-term financial planning for middle class individuals who may require some level of assistance in their later years. He has reached out to financial advisors as a way to market this concept as well.
Home health care, assisted living, and even nursing home care is not something that many families consider when planning for retirement. They invest in a 401(k) or buy life insurance, but if they require some level of assistance, whether in the comfort of their own home or some other assisted living community or residence, the expense may not have been counted on.
The benefits that an individual can be entitled to when they trade their life insurance policy for one of these prefunded accounts are often a great benefit to them and their family. According to California insurance broker David Kitaen, one of his clients took advantage of this new system that Chris Orestis devised and he has been able to receive home health care, which, according to Mr. Kitaen, was “a wonderful result for his family (Financial Planning).”
Chris Orestis admits that his plan isn’t suited for everyone. However, he insists that for his target clientele, it’s a system that works and can alleviate a great deal of stress that people feel with regard to long-term care expenses.