WHAT EVERY EMPLOYER SHOULD KNOW ABOUT Long Term Care Insurance

Transcription

1 WHAT EVERY EMPLOYER SHOULD KNOW ABOUT Long Term Care Insurance Unum Life Insurance Company of America 2211 Congress Street, Portland, Maine A (7-00) (8-01)

2 UNDERSTANDING LONG TERM CARE Today in America, millions of people of all ages need a type of assistance known as long term care (LTC). This means they need help with Activities of Daily Living (ADLs) such as bathing, dressing, eating, toileting, continence and transferring. The need for care can arise out of illness, injury or advancing age. The assistance may be provided by friends or family members, or by professionals, at home or in a facility. Increasingly, long term care is provided at home and not just for seniors. Forty percent of Americans receiving long-term care are under age At home and in the workplace, long term care issues affect everyone.

3 EMPLOYERS ARE TAKING THE LEAD The benefit of the future Long term care (LTC) insurance is expected to become one of the most sought-after benefits during this decade and the reasons go to the heart of the workplace. As our population ages, more and more of today s employees are stepping into the role of caregiver for a parent, an older relative or a friend. This creates problems for workers who face time and financial pressures, and issues for employers who suffer lost productivity. Fortunately, your company can be part of the solution. By incorporating LTC insurance into your benefit program, you can help employees avoid financial difficulty and remain productive on the job. Employers who take the initiative today to create a forward-focused benefit program stand the best chance of attracting and retaining valuable employees tomorrow. A growing need The age trend isn t the only factor driving the need for LTC insurance. Changes in federal policy have shifted the burden of long term care costs from the government to individuals and their families. Tax incentives are now available to businesses offering group long term care insurance. You have the opportunity to partner with your employees to meet the need for long term care. In a highly competitive world, companies who rise to this challenge will become the employers of choice.

4 LONG TERM CARE S IMPACT ON THE WORKPLACE A threat to retirement security Employers today invest significantly in programs such as 401(k) or defined benefit plans to help employees meet their retirement goals. Many fail, however, to help their employees protect the nest egg they ve been encouraged to build. When a long term care need arises, it doesn t take long for a lifetime of savings to disappear. As a national average, a year in a nursing home is estimated to cost more than $46,000. In some regions, it can easily cost twice that amount. 2 Who Really Pays the Bill? Nationwide, caregiving families spend $2 billion per month of their own money providing care to family members. 5 Neither government programs nor ordinary health insurance plans provide adequate coverage for most Americans. For example, Medicare paid for just 12.3% of nursing home costs in Without insurance protection, LTC costs could easily and quickly deplete one s life savings. 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 Over 70 percent of single individuals in a nursing home and 50 percent of couples with one partner in a nursing home are impoverished within one year. 4 Whether your employee is a caregiver or one of the millions of Americans actually receiving care, the financial burden can be extremely heavy.

5 Who are the Caregivers? Family members provide about 80 percent of care to in-home patients. 7 Today, 22.4 million families almost one-quarter of American households are providing informal long-term care to a friend or relative. 8 LTC insurance: The right employee benefit at any age It s important to remember that LTC insurance is not just for the elderly. In fact, 40 percent of LTC recipients are under LTC insurance is a smart benefit choice for employees at any age. The younger the applicant, the lower the cost over the life of the policy. Stress on you and your employees One study shows that the average caregiver now devotes 18 hours a week to helping elderly loved ones. 9 To balance the demands of work and home, employees often miss business meetings, decline transfers or business trips, come to work late, reduce their hours or take unpaid leave. Increasingly, employers are feeling the financial impact: annual productivity losses from eldercare are estimated to exceed $29 billion per year nationwide. 10 When employees are absent, employers must train temporary workers or assign duties to co-workers, causing disruption and added stress in the workplace. As America ages, the burden will grow. Within the next 25 years, one in three workers will provide some type of long-term care. 11 The time is right for LTC insurance as a workplace benefit. Average Annual LTC Premium Assumes customer purchases UnumProvident Group LTC with a monthly benefit of $3,000 for Nursing Home care; 50% benefit for professional home care; 90-day Elimination Period; 3-year Benefit Period. $250 $360 $480 Age 30 Age 40 Age 45 AGE AT PURCHASE

6 THE ADVANTAGES OF UNUMPROVIDENT S LTC INSURANCE Unique plan designs and easy access to service For employers ready to join the growing ranks of companies offering this valuable benefit, UnumProvident has a solution that stands out in the marketplace: UnumProvident LTC insurance is disability-based. Individuals qualify for benefits when they need assistance with two or more Activities of Daily Living (ADLs) or when they suffer Severe Cognitive Impairment. Once qualified, the insured is not required to submit a record of expenses. Benefits can be used to pay for any expenses the insured and his/her family decides are important. There s a choice of care options, including nursing home or at-home care. Home care can be provided by a family member or friend, or by a professional caregiver through a licensed home health-care agency, depending on the home care option selected. Family members (between 18 and 80 years old) spouses, parents, children, siblings, and grandparents are eligible for coverage at competitive group rates.* UnumProvident also provides LTC Connect SM : a free, 24-hour information and referral service that provides answers to questions about long term care services and issues. *May vary by state. Funding options, flexibility and enrollment support Plans can be tailored to meet your company s needs. As an employer, you can design and fund an inexpensive base plan with employeepaid buy-up options, allowing employees to buy additional coverage, or offer a wide range of choices on a non-contributory/voluntary policy. UnumProvident s enrollment specialists will work as partners with your company and your insurance advisor to help maximize employee participation in the plan.

7 UNUMPROVIDENT: THE SOLUTION FOR THE LONG TERM At home and in the workplace, long term care is emerging as one of the critical issues of our time and employers can play a key role in providing solutions. By including UnumProvident LTC insurance in your benefit program, you can help your employees plan responsibly for their future needs. And, by extending coverage to family members, you can make it easier for workers to manage their caregiving responsibilities while remaining productive on the job. Simply put, UnumProvident LTC insurance is a winning solution for everyone. This is not intended to be a complete description of UnumProvident s Long Term Care policy, and some coverage options may not be available in all states. For a complete description, costs and further details of the coverage including exclusions, any reductions or limitations and the terms under which the policy may be continued in force, refer to Policy Series TQB.LTC in FL, NJ and WA, and TQGLTC95 in all other states (except NY). 1 LTC s Huge Untapped Potential, National Underwriter, December 7, HIAA Guide to Long-Term Care Insurance, HIAA Guide to Long-Term Care Insurance, Business and Health, January, Karen S. Petersen, More Spend Time Caring for Elders, USA Today, March 18, 1997, p1d. 6 LTC Insurance Could Play Role in Solving Medicaid Woes, National Underwriter, January 11, Challenges for Long Term Care Insurance in a Rapidly Changing World, Journal of Financial Service Professionals, January, Karen S. Petersen, More Spend Time Caring for Elders, USA Today, March 18, 1997, p 1D. 9 Ibid. 10 AARP National Caregivers Survey, National Alliance for Caregiving, Margie Barrie, Group Long Term Care Insurance: It s Not Just for the Elderly, Broker World, May 1997, p LTC s Huge Untapped Potential, National Underwriter, December 7, 1998.

8 The subsidiaries of UnumProvident Corporation offer a comprehensive, integrated portfolio of products and services backed by industry-leading return-to-work resources and disability expertise. The income protection leader,* we bring more than 100 years of experience to our work in creating innovative solutions that help our customers protect the rewards of their hard work: their paychecks, assets and lifestyles. * UnumProvident, the name and mark, represents multiple insuring subsidiaries of UnumProvident Corporation and includes the #1 group and individual income protection carriers in the United States and Canada according to Employee Benefit Plan Review, May 2001 and LIMRA May UnumProvident Corporation. The name and logo combination is a service mark of UnumProvident Corporation. All rights reserved. This insurance underwritten by UnumProvident Corporation subsidiary: Unum Life Insurance Company of America 2211 Congress Street, Portland, ME A (7-00)