Transcript Slide 1

Your Family, Your Future:
The Heart of Long Term Care Planning
Laurie Paulsen & Peter Moeschler
1
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…
2
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.
3
• 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.
4
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%
5
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
6
How are LTC Services Paid for?
There are basically five ways to pay for LTC.
1.
2.
3.
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
7
8