state of kansas new hire presentation102711.ppt · state of kansas new hire...

The State of Kansas Group Long Term Care Insurance Program for New Hires

January 2012 Underwritten by Genworth Life Insurance Company ©2012 Genworth Financial, Inc. All rights reserved.

47487 09/09/09 GROUP NUMBER 10012

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Today’s Topics

1 Why People Buy LTC Insurance

2 Myths and Realities

3 Cost of Care

4 What is Covered-Plan Details

5 Summary and Next Steps

©2012 Genworth Financial, Inc. All rights reserved. Company Confidential 47487 09/9/09 GROUP NUMBER 10012

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Reasons People Buy Long Term Care Insurance

• Help protect family and friends from the burdens of care giving

•  Help maintain choice of where they receive their care

•  Help them stay in their homes for as long as possible

•  Help them maintain a level of control and independence in their lives

•  Help protect retirement savings they have put aside


3

I can rely on my family

It’s too expensive

Myths and Reality

It won’t happen to me

My insurance already covers this

The government will pay

I can pay for this out of my savings


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What Does Long Term Care Insurance Cover?

Long term care insurance covers the costs of services that help people perform everyday activities* they may have difficulty doing or may need substantial supervision for.

Long term care situations can result from:

•  Injuries caused by accidents

•  Strokes

•  Diseases like Alzheimer’s, Parkinson’s or MS

•  And other chronic conditions

* Activities include Bathing; Dressing; Eating; Continence; Toileting; and Transferring. Severe cognitive impairment that requires substantial supervision also qualifies.


State of Kansas Costs of Care

* Based on 44 hours of homecare provided by a non-licensed but certified provider @ $18 per hour; ** Based on the median cost of private room in a nursing home in the State of Kansas

$168,894 $56,298*** NURSING HOME** FACILITY

$126,648 $42,216** ASSISTED LIVING FACILITY

$123,552 $41,184* HOME CARE *

COSTS FOR 3 YEARS OF CARE

ANNUAL COSTS


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How Does Long Term Care Insurance Work? It provides a “pool of money” or Total Coverage Amount that can help pay for long term care services when and where needed:

Home Care Assisted Living Care

Nursing Facility

Care

Other Care Support


Plan Example Summary – Age 45

$3,000/month

43,000/month

$72,000

$16.39

LEVEL 1

$6,000/month

$6,000/month

$4,500/month

$4,500/month

PAYS UP TO: •  Facility Care •  Home Care

$360,000 $162,000 TOTAL COVERAGE

$44.91 $27.95 PREMIUM

LEVEL 3 LEVEL 2


Benefit Increase Options – Age 45

$162,000 TODAY- Age 45

Automatically Grows to ~$700,000

Option #3 Automatic Increases for

Life – 5%

• No decisions required

• Premiums don’t increase

due to benefit increases

Can grow to: ~ $700,000**

** If you accept FPO every 3 years to age 75 * If you accept FPO every 6 years to age 75

Option #1 Buy more coverage

over time (FPO)

• Premiums go up over time

• Costs less at issue

Can grow to ~ $336,000*

Option #2 Automatic Increases for

Life – 3%

• No decisions required

• Premiums don’t increase

due to benefit increases

Automatically Grows to

~ $ 393,000

NOTE: Our Automatic Increase benefits are available as riders for an additional premium.


9 ©2012 Genworth Financial, Inc. All rights reserved. Company Confidential

45145 01/09 GROUP NUMBER 10012

Qualified Long Term Care Insurance The STATE of Kansas Long Term Care Insurance Partnership •  Recognizes Qualified Long Term Care Insurance •  Helps to protect your assets as a Kansas resident •  Gives dollar for dollar asset protection for each dollar of benefits paid under qualified long

term care insurance

Qualified Long Term Care Insurance •  Your Group Program qualifies under the Kansas Partnership •  You must select the appropriate inflation protection option

Your Group Program offers that option: •  If you are not yet 61, 5% Compounded Automatic Benefit Increases for Life Rider •  If you are older than 60, but not yet 76, 3% Compounded Automatic Benefit Increases for

Life; •  If you are older than 75, inflation protection is not required.

State Regulations May Change. This Information is Current as of 01/2012

10 ©2012 Genworth Financial, Inc. All rights reserved. Company Confidential

45145 01/09 GROUP NUMBER 10012

Medicaid and Long Term Care Provides people of limited means with access to: •  Nursing Homes •  Home Health Care •  Alzheimer’s Assisted Living Facilities

“Limited Means” are Medicaid limits with respect to: •  Resources •  Waiting period on resources transferred within last 5 years •  Use of resources for payment of nursing home expenses until the applicable limit

is reached (referred to as “spend-down” requirement) Kansas Medicaid Information: https://www.kmap-state-ks.us/

State Regulations May Change. This Information is Current as 01/2012

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Who is eligible to apply? As a newly/recently hired employee of the State of Kansas

you are eligible for this program if you are an: •  Actively at work, benefits eligible employees

•  Employee spouses under age 80

•  Employee parents and parents-in-law under age 80

•  Employee grandparents and grandparents-in-law under age 80

•  State of Kansas benefits eligible Retirees under age 80

•  State of Kansas benefits eligible employee’s adult children under age 80

•  State of Kansas benefits eligible employee’s siblings under age 80

And have a permanent US residence, and a valid Social Security or Tax Identification number from the US government.


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Next Steps…

Important details about this Program are explained in the Outline of Coverage, available on the State of Kansas web site

Apply on the Website: genworth.com/groupltc Group ID: KAN Access code: groupltc

Call Customer Service:

1 888 285 4889

OR

For 31 days from your benefits eligibility date you have no medical underwriting or streamlined underwriting depending on your age.


Details You Should Know •  There is no Return of Premium if you don’t use the benefits

•  Rates are designed and priced for long term stability-however they could increase

•  There is an elimination or waiting period-works like a deductible

•  Care not covered includes:

Important details are explained in the Outline of Coverage, available in your Information Kit or on the Employer Group Long Term Care Insurance web site

Care by immediate family member except under the Informal Care Benefit

Care for which no charge is made in the absence of insurance

Care by Veterans Administration or other government facility

Care outside US except as covered by the International Benefit

Care resulting from your alcoholism or addiction to drugs or narcotics

Care resulting from war or act of war, war or act of war, attempted suicide or self-inflicted injury, your participation in a riot, felony or insurrection

Care covered by workers comp, occupational disease act , or similar law

Non-duplication and coordination Only pay for coverage amounts over and above Medicare, or other state programs except Medicaid Won’t, in combination with other long term care insurance, pay more than expenses incurred.


Additional Disclosures

•  This insurance program is underwritten by Genworth Life Insurance Company

•  Coverage is provided under group policy 10012 issued to the State of Kansas using policy form series 7046

•  Coverage is intended to be tax qualified under IRS code 7702(B)

•  State variations may apply. Refer to your outline of coverage for coverage definitions, benefits, features, exclusions and limitations.

•  This material is part of a solicitation for Group Long Term Care insurance


state of kansas new hire presentation102711.ppt · state of kansas new hire...

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