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LTC Presentation
This document provides information about long-term care planning services offered by LTC Financial Partners. It discusses the need for long-term care planning given rising costs and risks, and how long-term care insurance can help cover costs and protect assets. Key details include common long-term care policy components like benefits amounts, eligibility periods, and inflation protection.
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LTC Presentation
- 1. Lone Star College L St C ll Long-Term Care Outreach & Education™ Program Heidi New-Crockford Regina W. Davis Long Term Care Specialist Long Term Care Specialist 713-857-9476 713-854-6773 Heidi@ltcfp.net Regina.Davis@ltcfp.net
- 2. Our mission: toeducate business owners, their employees and retirees about long-term care planning 2
- 3. Who is LTCFinancial Partners? • Nation’s largest agency g g y • Specializes in long term care planning • Leading provider of no cost educational seminars • Over 600 agents nationwide • Average agent experience minimum 8 yrs • Represent top insurance carriers • Allows objective comparison 3
- 4. What is Long-TermCare? Assistance and Care for Chronic Illness or Disabilities Can be Physical or Cognitive Impairments Caring versus Curing 4
- 5. Types of Long-TermCare Skilled Care • Nursing Care & Therapies • Trained Professionals Personal Care • Activities of Daily Living Bathing Eating Transferring Toileting T il ti Dressing D i Continence C ti Supervisory Care • Monitoring and Support 5
- 6. Where is long-termCare Provided? home1 Your h Y 20% Adult day care centers Assisted living facilities 80% Nursing homes Your Home1 Hospice facilities 1U.S.Department of Health and Human Services, National Clearinghouse for Long-Term Care, 6 www.longtermcare.gov, September 2008.
- 7. Who Needs Long-TermCare? More than 12 million people in the United States need some kind of long-term care1 d ki d f l t • Average age 66 • 41% are working adults Source: 1The Caregiving Project for Older Americans, "Caregiving in America" 2007 7 http://www.ilcusa.org/media/pdfs/Caregiving%20in%20America-%20Final.pdf
- 8. Risk of NeedingLong-Term Care 70% of people age 65+ will need some type of long-term 1 care services during their lifetime! This makes long-term care one of the single long term biggest financial risks Americans face today! Source: 1 U.S. Department of Health and Human Services, National Clearinghouse for Long-Term Care Information, www.longtermcare.gov. 8
- 9. Growing Need ForLong-Term Care An Aging America • 37.9 million Americans are over 65, 88.5 million by 20501 • By 2040 the population age 75+ will exceed that of age 65-742 • Centenarians are the fastest growing age group1 Families in Transition • Family’s demographics? • L Love-Legacy? L ? 1US Census Bureau, Facts, Older Americans Month: May 2009! 2National Center for Health Statistics, Health, United States, 2006 With Chart book, Hyattsville, MD: 2006 9
- 10. Growing Need ForLong-Term Care 1US Census Bureau, Facts, Older Americans Month: May 2009! 2National Center for Health Statistics, Health, United States, 2006 With Chart book, Hyattsville, MD: 2006 10
- 11. Costs outside ofNursing Homes Home Care $20-$25 $20 $25 per hour – Home Health Aide Assisted Living Facility $3,000-$6,000 $3 000 $6 000 a month/ $36 000 $72 000 annually $36,000-$72,000 Nursing Home $200 a day/$72 000 a year private room day/$72,000 year– $172 a day/$62,000 a year - semi-private room Source: 2008 John Hancock Cost of Care Survey, conducted by CareScout, 11 June 2008
- 12. Who Pays ForLong-Term Care? 54% of Baby Boomers believe Medicare will pay for long-term care services, 44% said they believe ‘other health insurance’ will pay.1 b li ‘ th h lth i ’ ill 1 StrategyOne for America’s Health Insurance Plans (AHIP), National Survey, October 2007 12
- 13. Medicare Health insurance for senior Americans age 65+ Eligible regardless of economic status Covers short term acute conditions – cure vs short-term vs. care May cover up to 100 days with a co-payment for 80 of these days. Not designed to cover long-term care costs 13
- 14. Medicaid Means tested - health insurance for the indigent Does cover long-term care services Covers primarily nursing homes Must spend down state required limits to qualify Deficit Reduction Act has made it more difficult to qualify for Medicaid by hiding assets 14
- 15. Won’t the VeteransAdministration take care of me? The VA has a priority system • Service-connected disabilities / income and asset criteria • If priority ranking not met, on case by case, space available, basis If you do qualify • First 21 days are free y • Co-pay charges vary on income / as high as $97 per day. y • Limited to a VA facility 15
- 16. Understanding The ClassAct? Community LIVING Assistance Services and Support • Not fully implemented until 2012 y p • Voluntary government plan • Working adults 30 hours a week • Pay premiums for 5 years and waiting 5 years before eligible for benefits • Administered by Secretary of Health and Human Services • Daily Benefit amount estimates $50.00; premium varies Costs are increasing, will the public plan pay enough? 16
- 17. Why Planning isNecessary The likelihood of needing LTC is high The cost of care will increase Other Health Care Plan Limitations Risk of Depleting Retirement Assets 17
- 18. Paying For Long-TermCare Spend Personal Assets (BE RICH) Family Pays Government Medicare Medicaid (BE POOR) Transfer the risk (BE INSURED) 18
- 19. Designing an InsurancePolicy The F Th Four Components C t of a Long-Term Care Insurance Policy P li 19
- 20. Designing Your Plan Monthly Benefit (how much) • How much does the insurance company p y per month? p y pay p • $1,500 - $15,000 per month Plan Duration (how long) • Plan designs available: 2, 3, 4, 5, 6, 10, Unlimited • Pool of money Elimination Period • 30, 60, 90, 100, 180 day elimination • Time Deductible Inflation Protection • Keeps your p p y policy current with rising costs of care y g • Future dollar values 20
- 21. Total Coverage Home Care Assisted Living Adult Day Care Nursing N rsing Home Care Hospice Care Comprehensive Coverage 21
- 22. What Does LTCinsurance Cost? Premiums based on • Age and health at time you apply for LTC insurance • Policy design • Discounts1 1 Discountsmay vary by state. 22 Discount available: Preferred Health Class, Marital/Partner and Family Discount
- 23. Triggers to Benefits 2 of 6 Activities 1. Bathing 2. Eating 3. Continence Cognitive 4. Toileting OR Impairment p 5. Dressing 6. Transferring 90 D C tifi ti of N d Day Certification f Need 23
- 24. What is Importantto You? Affordability Aff d bilit Simplicity Choice and Flexibility Asset Protection 24
- 25. Trust the Strengthof the Top LTC Insurance Carriers John Hancock Life Insurance Co. MedAmerica Insurance Co. Prudential Life Insurance Co Co. United of Omaha Life Insurance Co. Life Secure Insurance United S U it d Security Assurance it A 1LifeInsurance Management Research Association (LIMRA) Year-End 2008 25 Information is available upon request from John Hancock.
- 26. In Summary……. y • Comprehensive plans • Guaranteed renewable • Coverage is portable • Discounts available for marital status, good health, & professional affiliations, and Employer (work-place) discounts • Available to employees and family members 26
- 27. Next Steps…LTC Planning 1. Care Support Network – Free Online tools, resources & i f information on Care giving, long ti C i i l term care, in-home care, and more! 2. Questions & Answers 3. 3 Evaluations 4. Available to schedule a personal appointment Thank you! 27