Presented By: Norm Falick Retirement Is About Income Everything You Ever Wanted To Know About Long Term Care Insurance (But were afraid to ask) Presented By: Norm Falick Retirement Is About Income

What is Extended Care? Maybe the best way to think of Extended care is that which is needed as you suffer the issues of old age and frailty. It is a custodial level of care—non medical 2

Extended Care Insurance is Triggered When… You are cognitively impaired and/or You require assistance with two ADLs: Bathing Continence Dressing Eating Toileting Transferring

Extended Care is Offered In the comfort of your Home In Adult Day Care Facilities In Assisted Living Facilities In Skilled Care or Nursing Homes

Who Needs Extended Care? At age 65, Americans have a 70% chance of needing Extended care services at some point during the remainder of their lives. A person diagnosed today with Alzheimer’s will have on average $1,250,000 in long-term care expenses. Having a family member with Alzheimer’s increases ones chances of having it 400% * Taking Care of Tomorrow. A Consumer's Guide to Long Term Care: LTC

Options Rely on spouse Rely on children or extended family Pay for care out of your own capital Long Term Care Insurance ….assuming you don’t want to become a ward of the state and go on Medicaid...

Important Consequences of Extended Care Caregivers Women who provide care are six times more likely to suffer symptoms of depression. Women who spend more than nine hours per week caring for an ill spouse have double the risk of coronary heart disease. Female caregivers are more likely to suffer emotional stress, exhaustion, anger, anxiety, depression, and poor physical health resulting in higher mortality rates than non-caregivers. The advisors guide to long term care

47% of spousal caregivers die before the person to whom they’re providing the care.

National Council on Aging gave a survey to the Daughters and Sons who were caregivers for their parents and here is what they said the consequences were… 40% said the care had a major impact on their jobs. 66% said being a caregiver had a major impact on their family life. 30% said being a caregiver had a major impact on their health. 11% said they had to give up a promotion to be a caregiver. 14% said they had to cut back on the funding of their children’s education. National Council on Aging

Positive consequences of Families that have a plan of action for Extended Care 84% said the insurance lessened the family FINANCIAL contribution to care. 77% said it reduced the TIME family members had to provide care, 76% said it increased the QUALITY of care. 70% said it preserved the parents’ nest egg. 66% said it helped them focus on their own financial goals. The advisors guide to long term care

Consequences of Planning for Extended care for your Children The plan supplies a stream of income to pay for care, by doing this it allows the family to supervise care rather than provide it. Since care is paid for there is no need reallocate income or capital to pay for it therefore allowing your financial plan to work properly. It keeps siblings together, by keeping them apart. Harley Gordon Elder Law Attorney

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Cincinnati Average Annual Cost in 2016 and 2036 projected* Nursing Home Care Cost 2016 2036 Private room $100,740 181,948 Semi-private room $85,958 155,250 Assisted Living Facility Private, one bedroom $48,000 86,693 Adult Day Health Care Adult day care $14,300 25,827 Home Care Home health aide $50,336 80,912 *Genworth Cost of Care App

Types of Insurance TRADITIONAL Long Term Care Insurance “Use it or lose it” Lowest monthly payments, initially Creates a “pool of money” to be drawn from for a specified period of time with daily or monthly coverage limitations, i.e. $200/day or $6000/month Can include inflation protection Husband and wife on separate policies, but can share the pools if necessary. Ages 40-80, subject to underwriting Rates typically increase over time

Types of Insurance continued ASSET BASED Long Term Care Insurance. “Use it or GET IT BACK” Creates a cash value that can be accessed in your own lifetime Unused benefits are returned to the estate, tax free Can include unlimited lifetime coverage Can include inflation protection Ages 40-80, subject to underwriting Rates never increase Can be paid in lump sum up front, or monthly/annually Lump sum can come from IRA with favorable tax treatment

Types of Insurance continued ANNUITY BASED Long Term Care Insurance. For those who don't medically qualify for Insurance Creates an immediate “pool of money” for LTC benefits Tax free long term care withdrawals from taxable accounts Unused benefits are returned to the estate, tax free No underwriting Ages 40-85 Single premium lump sum payment Can come from IRA with favorable tax treatment

Types of Insurance continued Immediate Care For people already under care or will be very soon. Provides guaranteed lifetime income stream to pay for care. Prevents running out of money and going on Medicaid. Ensures remainder in the facility of choice. “Reverse underwriting”—the worse the medical history the cheaper the cost Ages 75-99

Types of Insurance continued Life Insurance Rider Pays out death benefit in one’s lifetime if they qualify for Long Term Care benefits Typically 2% of death benefit/month Husband and wife must each must qualify for and have own life insurance policy No benefit pool sharing No inflation rider No lifetime rider Typically more expensive than stand alone LTCI

Types of Insurance continued Annuity Rider Available on guaranteed payout annuities Upon qualifying for long term care benefits, typically doubles guaranteed payout for a specific period, often 5 years. Typically adds no cost to the annuity No riders

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