Extended Care

Presented by:Educators Lifetime Solutions

763-689-9023 / 877-403-23741

Do you agree you could live a long life?

If you do, do you agree you could become frail?

Do you realize that needing extended care could have serious consequences to your family and finances?

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Living a long life could well be in your future…

Planning for it now is a necessity.

What is Extended Care?

• Personal care for prolonged physical illness, disability, or having a cognitive impairment

• Medical condition can usually not be corrected or usually will not improve

• Loss of independence

Care given in many settings:• Adult Day Care• Home Health Care• Assisted Living• Respite Care• Nursing Home• Hospice Care

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Extended Care

SKILLED CARE Physician ordered

rehabilitation

Follows an on-going plan of care

Registered Nurses, Licensed Caregivers,

Therapists

24 hrs/day or intermittent

CUSTODIAL CARE Personal care

Needed when you cannot perform activities of daily living without assistance

Transferring, Bathing, Dressing, Eating,

Toileting, Continence

Alzheimer's or Dementia

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12.8 million Americans now require Extended Care1

3% are children

40% are under age 65

57% are over age 652

1. Shopper’s Guide to Long-Term Care Insurance, NAIC, 2010

2. GAO/HEHS-95-109 Long-Term Care Issues, p. 7.

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For every 1,000 Americans over age 65…

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Will suffer a catastrophic loss of their home due to fire

Will have an auto accident serious enough to warrant filing a claim

700

Will need some form of Long Term Care

70

7Georgetown University “National Spending for Long Term Care,” January 2007

Average cost of care in Minnesota

Nursing Home

*Private Room $ 74,460/Yr

*Semi-Private Room $ 66,795/Yr

Assisted Living Facility $ 33,817/Yr

Adult Day Health Care $ 18,590/Yr

Home Health Aide $ 21/Hr

Homemaker Services $ 19/Hr

Genworth 2010 Cost of Care Survey 8

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Protect your most important asset…

Your family

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What are the consequences?

The emotional and physical hardship to those you love.

Finances

The financial burden to those you love.

Family

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Reasons to consider Long Term Care Insurance

Asset/Income protection

Peace of mind

Avoid being a burden

Choice of care settings

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What are your options?

• Family

• Medicare

• Medicaid

• Self Pay

• Insurance

You choosewhere you receive

your care

Adult Day Care Home Health Care

Assisted Living Respite Care

Nursing HomeHospice Care

Long Term Care Insuranceprovides freedom of choice

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How do you trigger benefits?

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Activities of Daily Living (ADL’s)

A licensed Health Care Practitioner has certified that you are not expected to be able to perform (without substantial assistance from another individual) at least two of the following Activities of Daily Living for at least a 90-day period:

Transferring Bathing

Dressing Eating

Toileting Continence

-OR-

Cognitive impairment

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What factors determine the premium?

AgeYounger applicants pay less

HealthMany conditions can make an applicant uninsurable

Benefits You SelectMonthly benefitBenefit periodElimination periodInflation protectionOptional riders

Why plan now?

Baby Boomers 35 million Americans over age 65 now;twice that in next 10-12 years1

Rising cost of care services

Advances in health care People living longer with chronic illnesses(Diabetes/Heart Disease)

People living longerFastest growing sector of the population is age 85 and older2

1. US Census Bureau 8/20082. US Census Bureau 8/2008 16

AgeMonthly Benefit

Lifetime Benefit

50 $4,500 $270,000

53 $5,209 $312,540

56 $6,030 $361,800

59 $6,980 $418,800

62 $8,080 $484,800

65 $9,354 $561,240

68 $10,828 $649,680

71 $12,535 $752,100

74 $14,511 $870,660

77 $16,798 $1,007,880

80 $19,446 $1,166,760

Assume 5% compounding inflation. 17

Buying now with inflation builds value

Dollar for dollar asset protection to

qualify for state assistance.

MN State Annual Tax Credit

For more Information: www.dhs.state.mn.us

MN State Partnership Legislation

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Maximum allowable credit per year is $200 for couples filing jointly and $100 for other filers.

Incentives

What are YOUR plans?

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Living a long life could be in your future…

Thank you!

For more information contact:

Educators Lifetime Solutions

763-689-9023 or 877-403-2374

20April 2011