Long Term Care Insurance Note Information in this presentation is derived from Insurance for Dummies by Jack Hungelmann. I highly recommend this book.

LT Care covers daily living activities Bathing Dressing Eating Toileting Transferring– e.g., bed to wheelchair

In 2009, the average annual cost of a private nursing home room was $80,000 Source: Kiplinger Personal Finance, March 2010 p.57 Imagine what the number might be when you are in your 80s and beyond About 1 in 4 people turning 65 in 2010 will need at least one year of nursing home care

LT Care Insurance: Considerations Monthly or Daily Benefit Waiting Period: 30, 60, 90, 180 Where you want your care: best is everywhere– a facility or home care Benefit Period: How many years? Inflation adjustments When does the policy kick in?– often when help is need with two daily activities

Example: 6 Year, $160 Day policy for a 59 Year Old Female Coverage: up to $345,600 ($160 X 360 X 6 years) Waiting or Elimination Period: 60 days Coverage: Everywhere, home or facility Daily benefit compounds at the CPI– consumer price index Annual Premium: $2,447

Tough Questions Who needs Long Term Care Insurance? When should you buy Long Term Care Insurance?