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Your Family, Your Future:The Heart of Long Term Care Planning

Laurie Paulsen & Peter Moeschler

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About 38.9 million people in US are over age 65

One in two people age 85 need LTC1

The need for LTC is not limited to older Americans.

44% of those needing LTC will be over the age of 65.2

LTC services may be necessary at any age. Older adults may gradually find day-to-day living increasingly difficult. Younger adults may suffer a heart attack, stroke, disabling accident or develop a chronic illness. Long-term care services are

generally custodial and personal in nature but, in some cases, may be rehabilitative. To be continued…

Did you know…

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Neither medical insurance, Medicare, or Social Security are designed to pay for LTC.

LTC insurance can help pay for care.

LTC insurance can help retain assets.

LTC insurance can help retain independence.

This presentation is a general introduction to LTC insurance. It defines terminology generally used in industry and presents basic issues answers to frequently asked questions.

Did you know…

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• People are over five times more worried about being a burden on their family than dying.

• Uninsured medical expenses are the top financial worry among men and women age 55+.

• People rank Alzheimer’s as their single greatest fear among disabling diseases in later life.

• While two-thirds of people will actually need some long term care, such as home care, assisted living, or nursing home care, after they reach age 65, only 35% of people believe they will be the one to need such care.

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After turning age 65

More than 5 years 20%2 – 5 years 20%

1 – 2 years 12%1 year or less 17%No years 31%

Estimated years of LTC need…

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Nursing Home Costs for Private RoomNational average daily rate = $220 per day

National average yearly rate = $80,300

Home Health CareCosts for Home Health Care Aides

National average hourly rate = $21.00

Assisted Living – Base RateMonthly - $3,100

National average yearly rate = $37,200

Source: American Association for Long-Term Care Insurance 2010 LTCI Sourcebook

The Cost of LTC Services

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There are basically five ways to pay for LTC.

1. Self-Insure2. Medicaid/ Title 193. Medicare4. Long-Term Care Insurance5. Reallocation – Hybrid Products

A. Annuity with LTC BenefitsB. Life Insurance with LTC Benefits

How are LTC Services Paid for?

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THE TIME TO TALK IS NOW!