Transcript Long-term Care Insurance - Brigham Young University

Long Term Care Insurance (LTC)
Why Would I Ever Need LTC?
What is Long Term Care
Insurance (LTC)?
Long term care insurance pays for services required if a
person is unable to care for himself/herself due to injury,
chronic illness, or disability.
It is a “RISK” insurance.
Just like car insurance – you buy it and hope you never need to make a claim!
What is Long Term Care
Insurance (LTC)?
Coverage includes:
 Skilled services, Intermediate
Services, and Custodial Services
Provided through:
 Home Health Care, Adult Day Care,
and Nursing Home Care
Purpose of LTC
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You may need LTC if you can no longer perform
“activities of daily living”(ADLs) by yourself.
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Eating
Dressing
Bathing
Continence
Toileting
Transferring
Typically, a policy will pay benefits
when you can no longer perform a
certain number of ADLs, such as
three of the six or two of the six.
Purpose of LTC
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Other Reasons:
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Doctor’s Certification of Medical Necessity
Cognitive Impairment (Alzheimer’s)
Prior Hospitalization
Myths about LTC
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“I’m too young”
“My family will take care of me”
“Medicare and Medicaid will cover my bills”
“I can save enough on my own”
“LTC insurance is too expensive”
Test Your LTC Knowledge
1. Most long term care is
False
provided in a nursing home.
2. Nearly 40% of the LTC
population is under the age
True
of 65.
3. The average length of stay in
a nursing home is more than
five years.
False
88% of people who receive LTC
receive care at home or in an adult
day care center. 12% receive care
in a facility.
40% of people receiving LTC are
working-age adults aged 18-65.
Most nursing home stays are short,
recuperative stays. 10% of the
nursing home population faces a
stay of five years or more.
Test Your LTC Knowledge
4. Nursing home expenses are False
covered by Medicare.
5. People have to spend all or
almost all of their assets to
receive Medicaid benefits. True
6. On average, a one-year stay
in a nursing home costs
about $25,000.
False
Medicare provides reimbursement
for skilled care but pays nothing
for custodial care.
You can’t OWN anything and be
eligible for Medicaid.
Depending on where you live the
average costs for nursing home
care will be between $50,000 and
$80,000 per year.
Longevity – A two-edged sword!!
Life expectancy for women = 86
Life expectancy for men = 82
Most Utahans live another 2.5
years beyond the national average.
Living longer makes it more likely that you or your spouse
will, at some point, need services that could be paid for by
long term care insurance.
What Does LTC Cost?
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Nursing home care is expensive
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National average for a semi-private room
$52,000 Annually*
*Varies depending on where you live (SLC = $40,800)
What Does LTC Cost?
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Home health care is expensive
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National average
$20,000 Annually*
$18/hr, 5 hrs per day, 5 days a week
*Varies depending on where you live (SLC = $22,100)
Projected Future Costs of LTC
200000
$176,090
150000
$108,104
100000
$66,367
$52,000
50000
0
2005
2010
2020
2030
Based on national average figures. Varies depending on where you live.
Who Pays for LTC?
Nursing Home Care
Out of
Pocket
46%
Medicare
8%
Medicaid
41%
Private
LTC
5%
Who Pays for LTC?
Home Care
Medicare
15%
Out of
Pocket
63%
Medicaid
17%
Private
LTC
5%
Who Pays for LTC?
More often
than not~
YOU DO!!!
Premiums
Just like car insurance, you pay the premiums for a
lifetime, unless you choose to cancel the policy.
Premiums are based on age - - so the younger you are
when you sign up for coverage the less expensive the
premium will be.
Premiums
If you plan to sign up for long term care insurance it is best
to do so around age 45.
Planning for LTC needs
As you plan for the future, you should consider:
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Family medical history
Financial ability to pay for LTC needs
Individual circumstances (family support)
Options
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Do nothing (Risk)
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May not have a need
Could go broke during your later years
End up with Medicaid in control of your life
Rely on your children
Save enough to fund your own long term
care costs
Purchase some form of long term care
insurance to protect your assets and provide
more choices for receiving care
Plan Comparison Options
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Benefit period
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Length of waiting period
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3 years, 5 years, 7 years, unlimited
90 days, 6 months, 1 year
Coverage
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Home Health, Adult Day Care, Nursing Home
Respite Care, Hospice Benefit
Plan Comparison Options
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Eligibility Triggers
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Activities of Daily Living (how many?)
Alzheimer’s
Amount of daily benefit ($100, $150, etc.)
Waiver of premium
Non-forfeiture provisions
Plan Comparison Options
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Return of premium benefit
Inflation factor
Care management benefit
Grace period
Payment options
Cost
MetLife LTC Insurance
Available to:
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BYU Employee, Spouse, Parents, Parents-inlaw, Grandparents
Must be under age 75 at time of application
Meet underwriting requirements
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Health questionnaire
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Guaranteed enrollment for new employees
Premium is based on age at the time of enrollment.
Available through payroll deduction.
MetLife LTC Insurance
MetLife packets obtained by calling 1-800-438-6388,
or at www.dmba.com.
Representations made in this presentation
are for educational purposes and should not
replace individual, personal research and
plan comparisons.