Why the Odds Are You ll Eventually Need Long Term Care

Transcription

1 Why the Odds Are You ll Eventually Need Long Term Care 2011, Primerica / / 3.15 / 11LTC03-4

2 Will You Need Long Term Care? Did You Know... Almost 70% of people turning age 65 will need long term care at some point in their lives. LongTermCare.gov, viewed June 10,

3 Will You Need Long Term Care? Did You Know... 40% of people currently receiving long term care are adults years old. bloomberg.com, viewed June 10,

4 Will You Need Long Term Care? Did You Know... LTC is not just for older people. You can need LTC at any age. Car accidents Brain tumors Strokes 4

5 Will You Need Long Term Care? You Probably Think the Odds Are Slim That You Would Ever Need This Type of Care. Over a lifetime, you face the following risks: Being in a car accident 1 in 59 1 Having a residential fire 1 in Being admitted to a critical care unit 1 in out of 10 people will need long term care after age 65 so what s your plan? 4 1 Motor Vehicle Safety Data, Bureau of Transportation Statistics, and People QuickFacts, quickfacts.census.gov/qfd/states/00000html, viewed June 13, U.S. Fire Administration Fire Estimates, and People QuickFacts, quickfacts.census.gov/qfd/states. viewed June 13, Centers for Disease Control and Prevention, FastStats, and People QuickFacts, quickfacts.census.gov/qfd/states, viewed June 14, LongTermCare.gov, viewed June 13,

6 Will You Need Long Term Care? Did You Know... The odds are greater than 50% that any of us will need some kind of long term care PBS.org, viewed June 12,

7 Will You Need Long Term Care? What Are Your Plans? Medicare? Medicaid? You pay? Your family pays? Long Term Care Insurance? 7

8 Will You Need Long Term Care? What About Medicare and Medicaid? The mistaken belief that the government will pay for long-term care is one reason why people don t get long-term care. Another is that people don t think they will need it. USAToday.com, March 31, 2014 There s a very large misperception that Medicare pays for this (long term care). But these are not services provided by Medicare in the long term, and families are left with few other choices. PBS.org, March 20,

9 Will You Need Long Term Care? What About Medicare and Medicaid? Only after the assets are spent down does Medicaid step in, because Medicaid won t pay for long-term care unless the person meets limited-assets and low-income criteria. Medicaid recipients aren t allowed more than $2,000 in countable resources. Portlandtribune.com, November 29, 2012 Overall program rules for who can be eligible for Medicaid and what services are covered are based on federal requirements, but states have considerable leeway in how they operate their programs. LongTermCare.org, viewed June 11,

10 Will You Need Long Term Care? Will You be Able to Pay from Your Savings? Do you have, or will you have, the savings to pay $2,500 to $6,900 (in today s dollars) a month above your living expenses for long term care? What about your spouse? Will she or he have to deplete your savings to pay for long term care services? What then? Genworth 2014 Cost of Care Survey, Assisted Living Facility (One Bedroom Single Occupancy) Median Annual Cost 10

11 Will You Need Long Term Care? Many Financial Experts Now Recommend Some Form of Long Term Care Insurance Long term care is one of the most pressing issues and likely the greatest retirement expense facing Americans today it will only get more urgent as the nation ages. Those who planned to tap their hard-earned nest egg to cover the future long term cost of care may face a shock. Genworth.com, October 14,

12 Will You Need Long Term Care? About 70 percent of Americans age 65 and older will need long term care services at some point in their lives. The cost for these services both nursing home stays and care at home is expensive. Most Americans cannot save enough to cover these high costs on their own. But long term care insurance can cover the costs of long term care services and protect lifetime savings. Long Term Care Insurance: Protection for Your Future, 2013, ACLI 12

13 Be Sure You Have the Right Coverage Long Term Care Isn t Just About Nursing Home Care In % of new individual claims were for home care 18.5% were for assisted living care 30.5% were for skilled nursing home care American Association for Long Term Care, 2012 LTCI Sourcebook 13

14 Be Sure You Have the Right Coverage LTC Services Aren t Cheap Long Term Care Costs Home Health Aide Assisted Living Facility Nursing Home (private room) Genworth 2014 Cost of Care Survey, national median costs $20/hour $42,000/year $87,600/year 14

15 Be Sure You Have the Right Coverage Denial notwithstanding, many people will need help with long-term care for themselves or a loved one. Medicare doesn t pay for long-term care supports and services, yet seven in 10 people turning age 65 can expect to use some form of long-term care during their lives, according to the U.S. Department of Health and Human Services. MarketWatch.com, November 6, 2013 The high cost of long-term care can quickly wipe out a person s life savings. And some consumers who tried to protect themselves by buying long-term-care insurance found out too late they didn t understand what they bought. Seattletimes.com, February 24,

16 How Does Long Term Care Insurance Work? Benefit Period The length of time you can receive benefits after you file a claim, (i.e. two years, four years, or for the rest of your life). Elimination Period The number of days you agree to pay before the policy begins paying. Daily Benefit The amount of money the policy pays each day you need nursing home care. 16

17 How Does Long Term Care Insurance Work? Assisted Living Home Health Care Adult Day Care These services can postpone or eliminate nursing home care. 17

18 How Does Long Term Care Insurance Work? Inflation Protection Your benefits increase annually to keep pace with rising costs, while your premium remains the same. 18

19 How Does Long Term Care Insurance Work? Waiver of Premium Your policy stays in force but your premium stops while you are receiving benefits. 19

20 How Does Long Term Care Insurance Work? How Do You Qualify for Benefits? You need help with two our of five activities of daily living Eating Dressing Toileting Continence Transferring in and out of bed or chair OR With cognitive impairment 20

21 Why Should You Purchase Long Term Care Insurance? To preserve your independence. You have more say in where and how you live. To protect your assets. Keep your and your spouse s savings. One shouldn t go broke caring for the other and then have nothing left. To protect your family. You and your family will have peace of mind knowing that you will have high quality care and they won t have to worry about how to pay for it. You may also wish to purchase coverage for an older family member to ensure that he or she will be adequately cared for. 21

22 Primerica Our Mission Help families become properly protected, debt free and financially independent. In business since 1977 Rated A+ (Superior) by A.M. Best More than 4 million lives are insured through us Our life companies paid out more than $1 billion in death claims in 2014 Our life companies have approximately $682 billion of individual life insurance in force an industry leader North America s largest independent financial services marketing company A.M. Best ratings range in order for the highest ratings as follows: A++, A+, A, A-, B++, B+, B-, C++, C+, C, C-, D, E, F Long Term Care Insurance underwritten by Genworth Life Insurance Company of New York. Administrative Office: Richmond, Virginia. Primerica s affiliated life insurance companies include National Benefit Life Insurance Company (Home Office: Long Island City, NY) in New York; Primerica Life Insurance Company (Executive Offices: Duluth, GA) in other U.S. jurisdictions; Primerica Life Insurance Company of Canada (Head Office: Mississauga, ON) in Canada. 2011, Primerica / / 3.15 / 11LTC