Transcript Slide 1
Your Family, Your Future:
The Heart of Long Term Care Planning
Laurie Paulsen & Peter Moeschler
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Did you know…
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…
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Did you know…
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.
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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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Estimated years of LTC need…
After turning age 65
More than 5 years
2 – 5 years
1 – 2 years
1 year or less
No years
20%
20%
12%
17%
31%
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The Cost of LTC Services
Nursing Home Costs for Private Room
National average daily rate = $220 per day
National average yearly rate = $80,300
Home Health Care
Costs for Home Health Care Aides
National average hourly rate = $21.00
Assisted Living – Base Rate
Monthly - $3,100
National average yearly rate = $37,200
Source: American Association for Long-Term Care Insurance 2010 LTCI Sourcebook
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How are LTC Services Paid for?
There are basically five ways to pay for LTC.
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2.
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4.
5.
Self-Insure
Medicaid/ Title 19
Medicare
Long-Term Care Insurance
Reallocation – Hybrid Products
A. Annuity with LTC Benefits
B. Life Insurance with LTC Benefits
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