Long-term care (LTC) goes beyond medical care to include all the assistance you could need if you ever have a chronic illness or disability that leaves you unable to care for yourself for an extended period of time (longer than 90 days). While older people generally require the most long-term care services, 40% of long-term care claims are paid to someone under the age of 64.* A young or middle aged person who has suffered a debilitating illness or accident may also require care.

1. Long Term Care Planning Solutions
Helping Make Sense of It All
Briant Sikorski
Stratos Wealth Partners

2. Today’s Agenda
When Is Long Term Care Insurance Right for You?
Most Asked Questions about LTC
• What is LTC?
• Facts and Stats
Which LTC Solution is right for you?
Next Steps

3. Baby boomers and Long Term Care

4. Let’s Talk –Having the LTC Discussion
… or their financial advisor

5. Is Long Term Care Insurance Right for
YOU?
Are you:
• Age 40-80?
• Someone who has funds set aside as your “just in case” money?
• Concerned about what could happen to your to your retirement income?
• Concerned about who would take care of you if you needed extended health care?
• Concerned about protecting the amount of money you would like to leave for your
loved ones?
If you answered “yes” to any of the above,
Long Term Care Insurance may be right for you.

7. What is Long-Term Care (LTC)?
The need for care is created by two impairments…
Physical: A chronic medical condition that
compromises the individual’s ability to get through
the most basic of daily routines
Cognitive: A measurable decline in intellect that
compromises a client’s ability to safely interact with
his environment
The operative word is compromise

8. What Triggers Long Term Care?
Requiring assistance with Activities of Daily Living (ADL’s):
• Bathing
• Dressing
• Eating
• Continence
• Toileting
• Transferring
• Severe cognitive impairment
(mental deterioration)

9. Long Term Care – Where is care provided?
Assisted Living Facilities
provides supervision or assistance with (ADLs); coordination of services
by outside providers; and monitoring of resident activities to help to
ensure their health, safety, and well-being.
Nursing homes
provide the most comprehensive range of services, including
nursing care and 24-hour supervision
Home Care
• Unpaid caregiver (family members and friends)
• Home Maker Services
• A Nurse, Home Care Aide, and/or therapist

10. National Average Cost–Nursing Home

11. Average Cost Care – Outside of NH

12. Cost of Care – Average

13. Who Covers What

14. Consider the Odds
Someone turning age 65 today has almost a 70% chance of
needing some type of LTC services and support (3)

15. Starting Young – Not Just for Seniors
40% of Americans who need long-term care
are between the age of 18 and 604

16. It’s a woman thing

17. The Need for a Plan

18. Your Long-Term Care Experiences
 Who?
 Where?
 How was it paid for?
 Who provided the care?
 How long did the person need care?
 Was the care expected or unexpected?
 How did long-term care affect the family?
PLEASE SHARE YOUR STORIES

19. A Variety of LTC Solutions
Traditional LTC
Plan type most are familiar with
Most customizable
Ongoing premium payments
LTC/life asset based products
Return of premium feature
Guaranteed premium paid for a guaranteed specified period.
Simplified Underwriting
Annuity/LTC
Tax Deferred Growth
Simplified Underwriting
Offers typically 2 to 3 times of LTC benefits
Earns a minimum guaranteed interest rate
Life Insurance with LTC Rider
LTC concerns with a need for life insurance for financial protection

20. Traditional LTC – Old Approach vs. New Approach
Policy Options Old Approach
Individual Plans
New Approach
Shared Plans
New Approach
Your Budget
Monthly LTC $6000 $5000 $4500
Benefit Period 5 years each 3 years Shared 2 years
Inflation Protection 5% Compound 3% Compound 3% Compound
Monthly LTC at age 80 $15,161 $8768 $7891
Premiums $17,492 $7207 Approx. $4740
Things for You to Consider:
 What do you estimate your cost will be for LTC services?
 How much can you afford to contribute to the cost of your care?
 How much will you need your policy to pay in benefits each month?
 How long can you wait before your policy pays benefits
 What annual cost of insurance coverage can YOU afford to pay?
Couple (age 60) Select Non Smoker – State of Washington *

21. LTCI: Why Not Self Insure?

22. Traditional LTC vs. other LTC Solutions

23. Life Insurance with LTC Riders (Hybrids)
* Varies based on carriers, state and clients age

24. Annuity with LTC Riders

25. In Summary
 The likelihood of needing long-term care is significant
 The cost of such care can be financially devastating
 Not covered by heath insurance
 Not covered by Medicare after 100 days
 Long-term care coverage is another piece in financial
and retirement considerations
 Purchasing LTC insurance coverage may help preserve
financial well-being and provide peace of mind

26. What’s the Next Step?

27. DISCLOSURES:
The opinions voiced in this material are for general information only and not intended
to provide specific advice or recommendations for any individual. To determine which
investment (s) may be appropriate for you, consult your financial advisor prior to
investing. All performance referenced is historical and is no guarantee of future
results. All indices are unmanaged and cannot be invested into directly.
Life insurance policies contain exclusions, limitations, reductions of benefits, and
terms from keeping them in-force. Your financial professional can provide you with
costs and complete details.
[Add one of the disclosures listed in the notes (Tahoma 16) to meet compliance
requirements: IAS – IS – Bank/Credit Union - Hybrid.]