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Private funding solutions for LTC

June 1, 2011
by Chris Orestis
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During testimony at NCOIL's annual meeting to consider passing the Model Law, Life Care Funding Group offered the following example:

Just two weeks ago we heard from a family with a $95,000 life insurance policy entering its grace period. Their mother is in the process of making the move into long-term care and they could not afford the monthly expenses. They called their insurance company to ask what they could do with their policy and they were told their only option was to pay the premiums or let it lapse. Then they contacted us. And now instead of allowing the policy to lapse, we are converting it into a long-term care benefit plan that will help cover her costs of care and keep her off of Medicaid for at least the next two years.

We have had years to get ready for this crisis and it has arrived. The question now becomes: As an industry and as a country, are we ready to embrace these kinds of private market innovations to tackle the LTC funding crisis?

Chris Orestis is CEO and founder of Life Care Funding Group; a 15-year veteran of both the life insurance and long-term care industries; and a frequent speaker, featured columnist and contributor to a number of industry publications. His blog on senior living issues can be found at He can be reached at (888) 670-7773 or Long-Term Living 2011 June;60(6):28-29