The document discusses the need to plan for extended care as people are living longer lives and may require assistance with daily activities or suffer from cognitive impairments. It notes that over 12 million Americans currently require some form of extended care, with costs averaging tens of thousands per year. The document promotes purchasing long term care insurance now at a younger age to protect assets and have more options for care settings if extended care is needed.

1. Extended Care
Presented by:
Educators Lifetime Solutions
763-689-9023 / 877-403-2374
1

2. Do you agree you could live a long life?
If you do, do you agree you could
become frail?
Do you realize that needing extended
care could have serious consequences
to your family and finances?
2

3. Living a long life
could well be in your
future…
Planning for it now
is a necessity.
3

4. What is Extended Care?
• Personal care for prolonged physical
illness, disability, or having a cognitive
impairment
• Medical condition can usually not be
corrected or usually will not improve
• Loss of independence
Care given in many settings:
• Adult Day Care
• Home Health Care
• Assisted Living
• Respite Care
• Nursing Home
• Hospice Care
4

5. Extended Care
SKILLED CARE CUSTODIAL CARE
 Physician ordered  Personal care
rehabilitation
 Needed when you cannot
 Follows an on-going perform activities of daily
plan of care living without assistance
 Registered Nurses, Transferring, Bathing,
Licensed Caregivers, Dressing, Eating,
Therapists Toileting, Continence
 24 hrs/day or intermittent  Alzheimer's or Dementia
5

6. 12.8 million Americans now
require Extended Care 1
 3% are children
 40% are under age 65
 57% are over age 65 2
1. Shopper’s Guide to Long-Term Care Insurance, NAIC, 2010
2. GAO/HEHS-95-109 Long-Term Care Issues, p. 7.
6

7. For every 1,000 Americans
over age 65…
5 70 700
Will suffer a Will have an Will need some
catastrophic auto accident form of Long
loss of their serious enough Term Care
home due to to warrant
fire filing a claim
Georgetown University “National Spending for Long Term Care,” January 2007 7

8. Average cost of care in Minnesota
Nursing Home
*Private Room $ 74,460/Yr
*Semi-Private Room $ 66,795/Yr
Assisted Living Facility $ 33,817/Yr
Adult Day Health Care $ 18,590/Yr
Home Health Aide $ 21/Hr
Homemaker Services $ 19/Hr
Genworth 2010 Cost of Care Survey 8

9. Protect your most
important asset…
Your family
9

10. What are the consequences?
Family
The emotional and physical hardship to those
you love.
Finances
The financial burden to those you love.
10

11. Reasons to consider
Long Term Care Insurance
 Asset/Income protection
 Peace of mind
 Avoid being a burden
 Choice of care settings
11

12. What are your options?
• Family
• Medicare
• Medicaid
• Self Pay
• Insurance
12

13. Long Term Care Insurance
provides freedom of choice
You choose
where you receive
your care
Adult Day Care
Home Health Care
Assisted Living
Respite Care
Nursing Home
Hospice Care
13

14. How do you trigger benefits?
Activities of Daily Living (ADL’s)
A licensed Health Care Practitioner has certified that you are not
expected to be able to perform (without substantial assistance from
another individual) at least two of the following Activities of Daily
Living for at least a 90-day period:
Transferring Bathing
Dressing Eating
Toileting Continence
-OR-
Cognitive impairment
14

15. What factors determine the premium?
Age
Younger applicants pay less
Health
Many conditions can make an applicant uninsurable
Benefits You Select
Monthly benefit
Benefit period
Elimination period
Inflation protection
Optional riders
15

16. Why plan now?
 Baby Boomers
35 million Americans over age 65 now;
twice that in next 10-12 years1
 Rising cost of care services
 Advances in health care
People living longer with chronic illnesses
(Diabetes/Heart Disease)
 People living longer
Fastest growing sector of the population is
age 85 and older2
1. US Census Bureau 8/2008
2. US Census Bureau 8/2008 16

17. Buying now with inflation
builds value
Monthly Lifetime
Age Benefit Benefit
50 $4,500 $270,000
53 $5,209 $312,540
56 $6,030 $361,800
59 $6,980 $418,800
62 $8,080 $484,800
65 $9,354 $561,240
68 $10,828 $649,680
71 $12,535 $752,100
74 $14,511 $870,660
77 $16,798 $1,007,880
80 $19,446 $1,166,760
Assume 5% compounding inflation. 17

18. Incentives
MN State Partnership Legislation
Dollar for dollar asset protection to
qualify for state assistance.
MN State Annual Tax Credit
Maximum allowable credit per year is $200
for couples filing jointly and $100 for
other filers.
For more Information: www.dhs.state.mn.us
18

19. Living a long
life could be in
your future…
What are YOUR plans?
19

20. Thank you!
For more information contact:
Educators Lifetime Solutions
763-689-9023 or 877-403-2374
April 2011 20