Long-Term Care Option

Transcription

1 Welcome The Hybrid Life & Long-Term Care Option Protecting Your Wealth and Dignity

2 Webinar Objectives Introduce Educate Illustrate

3 Our Commitment Provide sound financial information Help you identify goals and needs Offer complimentary consultation Offer suggestions and solutions to help you obtain those goals as well as satisfy any needs

4 What Is Long-Term Care? Long-term care goes beyond medical care and nursing care to include 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. Health Insurance Association of America, 2009

5 Planning for Long-Term Care 1. Traditional Long-Term Care options 2. The new HYBRID Long-Term Care options

6 Traditional Long-Term Care Until recently, consumers had limited choices when it came to long term care health insurance. Traditional policies providing certain amounts of selected coverage were the norm.

7 Traditional Long-Term Care As time passed the insurance industry realized that consumer needs were not always being met! What happens if I never use the policy?

8 Planning for Long-Term Care 1. Traditional Long-Term Care options 2. The new HYBRID Long-Term Care options

9 The New Hybrid LTC Policies In response to consumer and agent demands, insurance companies have designed and are currently designing what can be best described as hybrid or linked policies. JM Marketing is very proud of the fact that we were able to offer to our KACD associates one of these new Hybrid policies in 2014!

10 The New Hybrid LTC Policies These new HYBRID policies combine the benefits of a life insurance policy with a long term care component. With these HYBIRD policies, the policy owner has the guarantee of long term care benefits, or if no care is needed, the promise of life insurance benefits to their families.

11 Introducing The New Hybrid LTC Policy Lifetime Benefit Term A new kind of life insurance that is the first real innovation in life insurance since Universal Life Insurance over 25 years ago!

12 The New Hybrid LTC Policies Policy Attributes Term insurance through age 120 No cash surrender value Paid-up term insurance starting in the 6 th policy year and increasing every year thereafter Long Term Care benefits through age 120 Fully portable at retirement with same rates

13 The New Hybrid LTC Policies Life Insurance Benefits Guaranteed Issue up to $75,000 No Health Questions for KACD Members Contingent Guaranteed Issue up to $150,000 Three Health Questions for KACD Members

14 The New Hybrid LTC Policies Life Insurance Benefits Contingent Guaranteed Issue up to $75,000 For Spouses of KACD Members Guaranteed Issue Children s Rider of $10,000 With Future Purchase Options

15 The New Hybrid LTC Policies Long Term Care Benefits Benefits including 75 months of long term care protection

16 The New Hybrid LTC Policies Long Term Care Benefits The monthly Long Term Care benefit is equal to 4% of the Face Amount of the Life Insurance Benefit

17 $75,000 Fidelity Permanent Term $225,000 LTC Benefit $75,000 Death Benefit $75,000 Death Benefit

18 The New Hybrid LTC Policies Types of Long-Term Care Nursing-home care Home health care Assisted living care

19 PLANNING OPTIONS Community Care Adult day care Alternate care

20 POLICY ATTRIBUTES Benefit and Waiting Periods The LTC Benefits begin after a 90 day elimination period Benefits are triggered by a covered person being unable to perform 2 out of 6 activities of daily living

21 POLICY ATTRIBUTES Renewability and Waiver of Premium A guaranteed renewable policy cannot be canceled as long as you pay your premiums on time A waiver-of-premium provision allows you to stop paying premiums during the time you are receiving benefits

22 Family members are also eligible You may also apply for coverage for your family members

23 Why Is It Important to Plan for Long-Term Care? Help protect assets Help preserve dignity and independence

24 Increased Risk for Women Because women typically outlive men by several years, they face a 50% greater chance of entering a nursing home after age 65. Source: Health Insurance Association of America, 2007

25 Going Broke Two-thirds of single people and one-third of married couples exhaust their funds after just 13 weeks in a nursing home. Within two years, 90% will be bankrupt. Source: 2004 Field Guide, National Underwriter

26 Planning for Long-Term Care 1. MISCONCEPTIONS 2. PLANNING OPTIONS 3. BENEFITS OF LONG-TERM-CARE INSURANCE

27 Common Misconceptions 1. It will never happen to me. 2. It can t be that expensive. 3. My family will take care of me. 4. My health insurance will cover it.

28 MISCONCEPTIONS It Will Never Happen to Me Once you reach age 65, there is a 43% chance that you will spend some time in a nursing home. 43% Source: 2004 Field Guide, National Underwriter

29 It Can t Be That Expensive! Could you afford to write a monthly check for $4,800 for Long Term Care Coverage?

30 Relying on Family and Friends 70% Family and friends are the sole caregivers for 70% of elderly people. Source: Health Insurance Association of America, 2003

31 MISCONCEPTIONS My Health Insurance Will Cover It YES P P NO Doctors visits, outpatient procedures Short hospital stays P Long-term care

32 Planning for Long-Term Care 1. MISCONCEPTIONS 2. PLANNING OPTIONS 3. BENEFITS OF LONG-TERM-CARE INSURANCE

33 PLANNING OPTIONS What Are Your Options? 1. Self-insure 2. Medicaid 3. Long term care insurance

34 It Can t Be That Expensive! Kansas: Average Monthly Cost of Nursing Home Care* * 2012 MetLife Market Survey of Long Term Care Costs

35 PLANNING OPTIONS Medicaid Tax dollars State governments Federal government Needy families

36 Qualifying for Medicaid Institutionalized Spouse Family assets Community Spouse Allowance

37 PLANNING OPTIONS Long-Term-Care Insurance Long-term-care insurance transfers some of the financial risk of long-term-care costs to an insurance company.

38 Planning for Long-Term Care 1. MISCONCEPTIONS 2. PLANNING OPTIONS 3. BENEFITS OF LONG-TERM CARE INSURANCE

39 PRESERVE DIGNITY Retain Freedom of Choice Two-thirds of people say that having enough money to be able to choose a long-term-care facility for themselves or for a loved one is very important... 37%... yet only 37% have saved anything to cover the potential costs they may face. Source: Business Wire, May 23, 2003

40 Benefits of Long-Term-Care Insurance Helps Protect Assets Preserve retirement savings Avoid welfare Obtain tax benefits Helps Preserve Dignity Maintain standard of living Preserve independence Retain freedom of choice

41 The Risk Is Real... House damaged by fire $173,000 Car damaged in accident $28,000 Needing long-term care $58,000 1 in 96 chance 1 in 5 chance 1 in 2 chance Sources: 2004 Field Guide, National Underwriter; Haver Analytics, 2004; Motor Trend, 2003; Kiplinger s Retirement Report, March 2004

42 Where Do You Go from Here?

43 Take Action Although 71% of people believe that having some type of long-termcare coverage is important... 71% 17%... only 17% say they currently have long-term-care insurance to cover the costs.

44 Where Do You Go from Here? Do it yourself Work with others Work with us Procrastinate

45 Thank You Questions? Call Us Toll Free 1(800)