Remember when you thought you were invincible?

Transcription

1 LONG TERM CARE INSURANCE Long Term Care Insurance is underwritten by Provident Life and Accident Insurance Company and Unum Life Insurance Company of America under the UnumProvident brand. Remember when you thought you were invincible? Provident Life and Accident Insurance Company 1 Fountain Square, Chattanooga, TN Unum Life Insurance Company of America 2211 Congress Street, Portland, ME LTC-130 (10-04) 1-05

2 Nothing could stop you. Now, as an adult, you realize that no one is invincible, and that your dreams and plans are probably a lot different than those of your childhood. That s because life, to say the least, is unpredictable. But if something happened to you, and you needed assistance with everyday activities, how would you pay for it? Would you have to deplete your family savings, your children s college funds or dip into your retirement plan? If the answer to any of these questions is yes, then you should consider purchasing long term care (LTC) insurance. 13 million people in the United States need long term care, 1 and as America ages, the need for long term care insurance grows. None of us like to think about the possibility of needing this type of care, but as we live longer, it will become a more likely reality. 1 Health Insurance Agency of America (HIAA), A Guide to Long-Term Care Insurance, May, 2003

3 What Is Long Term Care? Long Term Care is the type of care received either at home or in a facility, when someone needs assistance with Activities of Daily Living (ADLs) such as bathing, dressing, toileting, continence, transferring and eating, or suffers severe cognitive impairment (such as Alzheimer s disease). Why Long Term Care Insurance? Without long term care insurance, prolonged expenses can add up quickly. It s easy to understand why when you look at these startling statistics. Today, the average nursing home stay can cost more than $50,000 a year. In some regions, it can easily cost twice that amount. 2 Bringing an aide into your home just three times a week (two to three hours per visit) to help with dressing, bathing, preparing meals, and similar household chores can easily cost $1,000 each month, or $12,000 a year. 3 These are national averages and may vary by state. The costs of long term care services will more than quadruple in the next 30 years. 4 What s even more alarming is that individuals and their families usually bear the weight of this financial burden. Government funding falls short as well with only limited financial support coming from Medicare. And although Medicaid covers approximately half of the nation s nursing home expenses, you must first deplete the vast majority of your assets to qualify. 5 If you think this is an issue facing only older adults or that it won t affect you, consider these facts 40% of Americans receiving long term care are under the age of Nearly one out of every four households (21% or 22.9 million households) is involved in providing care to persons aged 50 or over. 7 Family members and friends are the sole caregivers for 70 percent of elderly people. 8 Many of these caregivers are working age adults who must balance a career with the needs of their family member. In short, there s a very real chance you or someone you know may need long term care before retirement age. 2 Health Insurance Association of America (HIAA), A Guide to Long-Term Care Insurance, May HIAA, A Guide to Long-Term Care Insurance, May HIAA, A Guide to Long-Term Care Insurance, May HIAA, A Guide to Long-Term Care Insurance, May Awareness of LTC Insurance Value Growing: ACLI Report, The National Underwriter, May Caregiving in the U.S. National Alliance for Caregiving and AARP, April HIAA, A Guide to Long-Term Care Insurance, May Long-Term Care (LTC) rates may change on a class basis

4 The Advantages of LTC Insurance: Long term care insurance can help preserve assets by providing coverage for long term care needs. Without it, the financial and emotional implications of providing care can be devastating. LTC insurance offers a variety of options such as coverage for rehabilitative services, assisted living, or home care. LTC insurance can pay a benefit for care received that might not be covered by other insurance plans. If you move to another state or choose other employment, your LTC coverage is yours to keep as long as you continue to pay your premium. If you have an individual policy you do not need to elect to continue your coverage, it continues automatically. Cost-Effective Coverage Purchasing LTC coverage now ensures you receive a lower premium as rates increase with age. 9 Our plans allow you to purchase coverage for yourself and/or your family. The coverage choices are up to you. Look to a Leader We are one of the nation s leading disability insurers who in addition, have developed long term care solutions that can help preserve your assets. Our LTC insurance is a means to help secure your future and the futures of those you love, and it is one of the most economical ways to manage life s risks. You protect other things you hold dear such as your car, your home, even your life, but why aren t you protecting one of your greatest assets your financial future? Purchasing long term care insurance from us won t make you invincible, but it can help secure your assets against the costly affects of long term care. To learn more about how our long term care insurance can be part of your financial portfolio, contact your insurance agent or our representative today or visit our web site at

5 This is not intended to be a complete description of the Long Term Care insurance policy and some coverage options may not be available in all states. The insurance policy has exclusions and limitations that may affect any benefits payable. For costs and complete details of coverage, refer to Policy Forms LTC03, LTC03F, LTCP03, LTCP03F, LTCT03, LTCT03F, RLTC03, RLTC03F, RLTCP03 or RLTCP03F (underwritten by Provident Life and Accident Insurance Company), LTC99, LTC99Q, LTC99Q2, LTC99Q3, TQGLTC95, TQGLTC95ER, TQB.LTC, GLTC04 or RGLTC04 (underwritten by Unum Life Insurance Company of America) or contact your insurance agent or UnumProvident representative. In Idaho, Oklahoma and Virginia refer to LTC03, LTCP03, LTCT03, RLTC03 or RLTCP03 (underwritten by Provident Life and Accident Insurance Company) TQGLTC95, GLTC04 or RGLTC04 (underwritten by Unum Life Insurance Company of America). In Florida refer to LTC03, LTCP03, LTCT03, RLTC03, RLTCP03, (underwritten by Provident Life and Accident Insurance Company) TQB. LTC, GLTC04 or RGLTC04 (underwritten by Unum Life Insurance Company of America). In Texas refer to LTC03, LTCP03, LTCT03, LTC03A5, LTCP03A5, LTCT03A5, LTC03A10, LTCP03A10, LTCT03A10, RLTC03, RLTC03A5, RLTC03A10, RLTCP03, RLTCP03A5 or RLTCP03A10 (underwritten by Provident Life and Accident Insurance Company) TQGLTC952, GLTC04 or RGLTC04 (underwritten by Unum Life Insurance Company of America). UnumProvident is the marketing brand. Long Term Care insurance is underwritten by UnumProvident Corporation subsidiaries: Provident Life and Accident Insurance Company, 1 Fountain Square, Chattanooga, TN Unum Life Insurance Company of America, 2211 Congress Street, Portland, ME Provident Life and Accident Insurance Company has sole financial responsibility for all claims arising from the policy forms listed above and identified by the underwriting company. Unum Life Insurance Company of America has sole financial responsibility for all claims arising from the policy forms listed above and identified by the underwriting company. UnumProvident Corporation and its other insuring subsidiaries bear no financial liability. LTC-130 (10-04) 1-05