1. Long-Term Insurance: Planning
for Your Future

2. Long-Term Care Costs Skyrocketing
• An ounce of prevention is worth a pound of cure
• The cost of long-term care is skyrocketing
• Middle-aged individuals – or older – who haven’t
prepared to meet long-term care costs could get
burned

3. Costs of Long-Term Care
• According to LTCTree.com, demand for long-term care is at an
all-time high:
– 75% of people 65 and older will eventually need long-term care
– About 80 million Americans will turn 50 over the next 18 years
– By 2020, one in three workers will be faced with providing LTC to their
baby boomer parents
• Average cost of a one-year stay in a nursing home: $80,850
• Can be as high as $100,000
• 75% of American singles and 50% of couples spend almost all
their retirement savings in the first year of living in a nursing
home
• Long-term insurance can help

4. How Long-Term Insurance Works
• Introduced 30 years ago
– Supplement to Medicare’s limited nursing home coverage
– Covers a multitude of services for elders
• Typical policy covers:
– Nursing home services
– Home healthcare services
– Assisted living facilities
– Respite care
– Hospice care
– Adult day care
– Care advisory services
– Medical equipment
– Home modifications

5. How Much Does It Cost?
• Full menu
• American Association for Long-Term Care’s 2009 Sourcebook:
– Ages 50 and 54 paid as little as $989 per year
– Ages 60 and 64 paid $1,125 (minimum)
– Average cost of long-term insurance between $1,800 and $2,000 per
year
– Costs of $3,000 or higher are not uncommon

6. Is Long-Term Insurance Right for You?
• Make sure you need it
• If you’re approaching retirement, are low on cash and savings
– you may not need long-term insurance
– Low savings may qualify you for Medicaid, which will cover much of
the costs (but not all)

7. Pros and Cons of Long-Term Insurance
• Long-term insurance
pros:
– Prevent your life savings
being spent on senior care
– Give you leverage in choosing
the senior care facility that’s
right for you
– Prevent you from having to
tap into your family funds
– Tax-deductible premiums
• Long-term insurance
cons:
– Cost burden as you near
retirement
– May be unnecessary –
especially for low-income
earners
– Not cover all of your long-
term care costs

8. Long-Term Insurance: The Bottom Line
• Do your homework and gather the data you need
• Follow through with payments every month to avoid
lapses in coverage
• You may not need long-term insurance soon, but
chances are you will need it someday

9. SeniorHomes.com
• Information in this presentation provided by
senior finance expert Brian O’Connell
• SeniorHomes.com is a free resource for
seniors and families searching for housing and
care services
• Visit http://www.seniorhomes.com for more
information on senior housing

10. SeniorHomes.com
• Information in this presentation provided by
senior finance expert Brian O’Connell
• SeniorHomes.com is a free resource for
seniors and families searching for housing and
care services
• Visit http://www.seniorhomes.com for more
information on senior housing