Long Term Care Planning Pieces
— Round Personal & Commercial Accounts with Long Term Care Planning
(LTC.1) — Here's a Road-Map for the Long Term Care Planning process. People are visual. This provides a simple path.
(LTC.2) — Talk to your existing clients about protecting their retirement nest-egg. This image makes the risks pretty clear.
(LTC.3) — Help clients visualize the peace of mind that comes from being prepared with a Long Term Care strategy.
(LTC.4) — Educate your clients in the basics of traditional Long Term Care Insurance. This breaks it down to simple terms.
The Basics of Traditional Long Term Care Insurance Plans
What is Long Term Care?
Long Term Care is the assistance provided to a person who has a cognitive impairment requiring continual supervision or is unable to perform certain activities of daily living (ADLs) such as bathing, dressing, or getting up from a bed or chair. Long term care services may also include assistance with day to day activities such as medication management, personal hygiene, light housekeeping or meal preparation. Services provided by a physical, respiratory or speech therapist may also be included. Long term care can be provided in your home, an adult day care center, assisted living facility or a nursing home.
What Is Long Term Care Insurance?
It is insurance that provides for Home Care, Community Care and Facility Care.
What is Not Long Term Care Insurance?
Medicare or Group Insurance do not provide coverage for Long Term Care.
Long Term Care Coverage Is...
provided by Medicaid for Nursing Home Care, but only after you've exhausted all your assets.
Why People buy Long Term Care Insurance:
- To provide dollars to help their families care for them
- To protect assets
- To protect retirement Plans
- To provide peace of mind
- To provide choice when care is needed
- To provide independence
A good Plan should provide:
- Home Care: Skilled Services, Homemaker Services, Chore Services, Hospice Care, Adult Day Care, Caregiver Training and Home Modification
- Facility Care: Assisted Living Care, Alzheimer's Care and Nursing Care
- Care Coordination: A trained professional to assess care needs, find providers, provide monitoring, design a plan of care and assist with initial claim forms.
- Additional Features include Inflation protection, Alternate Care Benefit, Respite Care and Waiver of Premium.
Long Term Care Insurance Policy Structure
- Daily or Monthly Benefit: Range from $50 to $500 Daily ($1,500 to $15,000 Monthly)
- Benefit Period: Range from 1 year to 10 years, depending on issuing Company
- Elimination Period: 30, 60, 90 days are common (deductible period before benefits are paid)
- Maximum Initial Benefit: A function of the Daily or Monthly Benefit multiplied by the Benefit Period.
- Require Assistance with at least 2 of 6 Activities of Daily Living (ADLs) - Bathing, Eating, Dressing, Toileting, Continence, Transferring
- or require assistance due to severe cognitive impairment (e.g. Alzheimers)
- and a Health Care Professional certifies the need for care expected to last 90 or more days and that benefits will be paid to you based on a plan of care
(LTC.5) — You can sell a Life Insurance Policy and convert it to a Long Term Care Benefit Plan.
A Long Term Care Benefit Plan is the conversion of an in-force life insurance policy into a pre-funded, irrevocable Benefit Account that is professionally administered with payments made monthly on behalf of the individual receiving care. This option extends the time a person can remain private pay and delays entry into Medicaid.
- 10,000 Baby Boomers turn 65 every day
- 70% of them will need some form of long term care (40% in a nursing home)
- 88% of life insurance policies will never pay a death benefit (lapsed or surrendered)
- 38% of people that apply for Medicaid own a life insurance policy that will count against them
- If you might have a client who would benefit from this approach, call Peter Zinnen at 1.800.842.8289 to discuss it. We're here to help you consider all the options.
Watch this Video on the LifeCare Funding Process
then Call Peter at 800.842.8289 Ext. 300