Transcript Long Term Care Insurance Seminar and Sales Presentation

Long Term Care Insurance
Seminar and Sales Presentation
Presented by:
Licensed Agent Name, Designation
Title License # in CA, MN and FL
Company Name
Long term care insurance is underwritten by John Hancock Life Insurance Company, Boston, MA 02117
LTC-3750 9/05
Today’s Agenda
• Agenda
• What is Long Term Care (LTC)?
• What are chances of needing LTC?
• What are the costs associated with LTC?
• What are the funding sources to pay for LTC?
• Is LTC insurance right for me?
• Why John Hancock LTC Insurance?
What is Long Term Care (LTC)?
• Long term care is the type of assistance you would need
if you were unable to handle some of the basic activities
of daily living or if you require substantial supervision
due to a cognitive impairment.
What are Activities of Daily Living (ADLs)?
• Activities of Daily Living include:
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Eating
Bathing
Dressing
Toileting
Continence
Transferring (from bed to chair)
What is a Cognitive Impairment?
• A condition that leads you to require substantial
supervision to protect yourself or others from dangers to
health and safety.
Example:
Supervision due to Alzheimer’s disease, brain injury, or
stroke.
Where can I receive LTC Services?
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Your Home
Adult Day Care Center
Assisted Living Facility (ALF)*
Nursing Home
Hospice Facility
*Residential Care Facility in California
What Does LTC Cost?
• On average, one year in a nursing home or 24-hour
home care can cost more than $66,000 today1. In states
such as New York, the costs can run as high as
$115,3402.
• With costs increasing at about 4%3 per year. By 2030 the
cost of a nursing home is expected to be more than
$190,0004.
1. Congressional Budget Office, “Financing Long-Term Care for the Elderly” April 2004.
2. New York State Partnership for Long Term Care, 2003.
3. Based on a rate of inflation of 4.25% of nursing home costs according to the Bureau of Labor Statistics Consumer Price Index
See: Fitch, IBCA, Duff & Phelps, “Long-Term Care: An Industry in Transition” January 18,2002.
4. American Council of Life Insurers, “Long-Term Care Insurance: Protect Your Future” 2001
Your Long Term Care Experiences
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Who?
Where?
How was it paid for?
Who provided the care?
How long did the person need care?
Was the care expected or unexpected?
How did long term care affect the family?
Who Pays for LTC Services?
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Private/Company Health Insurance/Other
Personal Assets/Family
Medicare
Medicaid*
Long term care insurance
*Medi-Cal in California.
Who Pays the LTC Bill?
10%
3%
Medicaid 47%
2%
17%
Out of Pocket 21%
Medicare 17%
Private 10%
21%
47%
Other Private 3%
Other Public 2%
Georgetown University Long-Term Care Financing Project, "Who Pays for Long-Term Care?" May 2004
How Would You Pay for Long Term Care?
Private/company health insurance
• Skilled acute care only
• Not designed to pay for long term custodial care
How Would You Pay for Long Term Care?
Personal Assets:
One long term illness may jeopardize your
accumulated retirement savings/nest egg
How Would You Pay for Long Term Care?
Long Term Care is a family issue:
• If you had a need for LTC services, how would it effect
your family and/or spouse?
• 78% of adults receiving long term care at home rely
exclusively on assistance from family and friends5
• 71% of caregivers are women6
• Could your family care for you?
• Would you want them to?
5. Georgetown University Long-Term Care Financing Project, “Long-Term Care Support for Family Caregivers” March 2004.
6. Wiser Special Report, “ The Effects of Caregiving” 2004.
How Would You Pay for Long Term Care?
Medicaid*
• Must “spend down” assets to state required level**
*Known as Medi-Cal in California.
**Eligibility requirements apply and vary by state.
How Would You Pay for Long Term Care?
Medicare7
• Home Health Care
• Part-time skilled nursing care
• Custodial homemaker services provided incidental to
home health care
7. 2005 Guide to Health Insurance for People with Medicare. The Centers for Medicare and Medicaid Services and U.S. Department of
Health and Human Services.
How Would You Pay for Long Term Care?
Medicare8
• Skilled Care/Skilled Nursing Facility
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Three day prior hospital stay required
Enter facility within 30 days
Full costs covered for 20 days
Minimal costs covered for next 80 days
No coverage after 100 days in that benefit period
• Medicare Supplement
• Medicare approved expenses only
8. The Centers for Medicare & Medicaid Services and U.S. Department of Health and Human Services. “The 2005 Guide to
Health Insurance for People with Medicare.”
Is LTC Insurance Right for me?
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Protect your retirement savings
Spend quality time with your family
Financial support
Care planning expertise, advice and resources when you
need care
• Preservation of independence
• Gives you choices
LTC Insurance: Important at all ages
• As serious in accident or debilitating illness can happen
at age. That is why it is wise to plan for long term care
when you are young - and healthy.
• 37% of those needing LTC in 2000 are under the age of
65.9
• The probability of losses in physical functioning
increases with age – dramatically so for the population
aged 65 and older.10
9. Kaiser Family Foundation, “Medicaid and Long Term Care” May 2004
10. Congressional Budget Office, “Financing Long-Term Care for the Elderly,” April 2004.
LTC Insurance: It’s Affordable
• The cost of waiting can impact the amount of your premium.
Therefore, the younger and healthier you are when you apply
the lower your premiums can be.
$7,572
$8,000
$6,000
$4,000
$2,000
$2,346
$1,134
$0
50
65
79
Based on the average annual premium in 2002, with 4 years of coverage, $150 Daily Benefit and a 90-day Elimination Period.
America's Health Insurance Plans, "Long-Term Care Insurance in 2002" June 2004.
More than Financial Support:
Care planning expertise, advice and resources
John Hancock is committed to providing you with the help and
support you and your family will need when you need care, whether
it is at home or in a facility. This includes:
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Help designing a plan of care
Assistance with the claims process
Advice regarding caregiving resources in your community
Access to provider information, reports and discounts
Resources to help you and your family manage your LTC
decisions
John Hancock: A Leader in LTC insurance
When you choose John Hancock, you are placing your
trust in a company with:
• More than 140 years of experience providing a range of
insurance products to meet every need
• A company with that services more than 905,000* long
term care insurance policyholders. John Hancock has
paid more than $1 billion in claims as of August 31,
2005*
*Based on internal claims data as of 10/31/05.
John Hancock: Strength. Stability. Experience.
• We are known for our strong financial strength and
stability and have the ratings* to prove it:
Standard & Poors
AA+
Moody’s
Aa+
A.M. Best
A++
Fitch
AA+
* Ratings as of 9/29/05
Financial ratings refer only to the overall financial status of the company, and is not a recommendation of the specific policy
provisions, rates, or practices of the insurance company."
Thank You
This is a general description of coverage and is not an insurance contract.
Refer to the Outline of Coverage provided by our agent for an explanation of
features and options. Only the individual long-term care insurance policy
contains governing contractual provisions. You may request a sample policy to
review such provisions.
The Long-Term Care Insurance policy describes coverages under the policy,
exclusions and limitations, what you must do to keep your policy in force, and
what would cause your policy to be discontinued. Please contact the licensed
agent or John Hancock for more information, costs and complete details on
coverage.
Policy Series: LTC-03, BSC-03, LTC-02, BSC-02
In Idaho: LTC-03 ID, BSC-03 ID
In Indiana: LTC-03 IN,
In North Carolina: LTC-03 NC, BSC-03 NC
In Oklahoma: LTC-03 10/03, BSC-03 10/03
In Puerto Rico – BSC-05 PR
In California: LTC-02CA, LTC-02CAP