1. Long Term Care Insurance
Group, Executive Carve Out & Voluntary Plans

2. What is the definition of LTC?
Ongoing Care (care needed for months or years)
Chronic medical conditions
Chronic severe pain
Permanent disabilities
Dementia
Ongoing need for help with activities of daily living

3. Employer Group LTD Coverage
Group LTD (Long Term Disability Coverage)
Rehabilitation from a hospital stay
Recovery from an illness, injury, surgery
Claim approved if you cannot work
Pays percentage of income
Not generally portable
Usually ends by age 65

4. Costs of Care Today and in the Future
$905,154
Private Room in a Nursing Facility
$427,242
Assisted Living Facility
$229,380
$467,847
Home Care*
$108,270
$118,560
While its difficult to project exactly what things will be like 35 years from now, if costs continue to go up at 4 - 5% a year, as they have been for the past several years, you would need approximately $468,000 to pay for 3 years of home care; about $427,000 to pay for 3 years of assisted living, and nearly $1,000,000 for 3 years in a nursing home based on National Average costs, 35 years from now.
With that in mind you might want to consider one of the benefit increase options we offer to help your coverage keep pace with inflation.
All Costs based on 2008 Genworth Financial Cost of Care Survey, conducted by CareScout, April Projected cost for 3 years of care for a 45 year old when they reach age 4% annual inflation * Based on 40 hours of homecare per $19 per hour. **

5. Multi-Life/Group LTC Insurance LTCI Business Tax Incentives
Covered under HIPAA
LTCI premiums treated as accident and health insurance by IRS.
C-Corp: 100% deductible for owners, employees, spouses, retirees.
S-Corp, Partnership: 100% deductible for employees and partially deductible for owners per IRS published age & premium table.
Self-Employed: Partially deductible for owners per IRS published age & Premium table.

6. Multi-Life LTC Insurance Policies Eligibility & Plan Details
Ages eligible for Simplified Underwriting (5-6 health questions)
Executive Carve-Out Plans available at minimum of three (3) lives
Actively at work employees, spouses, family members, retirees,
board of directors eligible for discounts.
Spouses/Board of Directors may be included in Simplified Underwriting with minimum of 10 total of employee & spouse lives covered.
Policies are individually owned and fully portable.

7. LTCI Premium Discounts Available
Individual Policy Multi-Life Discounts:
Employer Paid: 10%; can include spouses
Employee Paid (Spouses/other family)- 5%
Spousal/Partner Discount: Up to 40% (with other spouse approved)
Marital Discount: Up to 15% (other spouse does not apply)
More suitable for executive carve-out plans or groups under 200
Group Certificate Policy Discounts:
Rates are blended per company census – age, salary, industry, job position, location
More suitable for larger employers with 500+ for voluntary plan or 200+ for employer paid (base plan), multiple locations and face-to-face meetings impossible.

8. 2. Have you ever been treated for or medically diagnosed as having:
a. AIDS (Acquired Immune Deficiency Syndrome)
b. ARC (AIDS Related Complex) or
c. any AIDS related condition(s)?
3. Do you currently reside in, or have you been advised to enter, or are you planning to enter a Nursing Facility or Residential Care Facility or are you currently receiving home health care services or attending adult day health care?
4. Do you require human help or supervision for any of the following:
• bathing • dressing • eating • walking • toileting• transferring from bed or chair • controlling bowel or bladder.
5. Do you currently use any of the following:
• dialysis • oxygen • wheelchair • walker • quad cane • crutches
*Health Questions:
*If answered Yes to any question, employee may receive offer
for limited policy per state minimum plan offered. Only for
groups of 10+ insured lives.
Have you had, do you currently have, have you ever been medically diagnosed as having or have you been treated for:
a. Stroke (CVA)
b. Multiple Transient Ischemic Attacks (TIA’s)
c. TIA within 5 years
d. Alzheimer’s Disease
e. Dementia
f. Mental Retardation
g. Schizophrenia
h. Amyotrophic Lateral Sclerosis (Lou Gehrig’s disease)
i. Muscular Dystrophy
j. Multiple Sclerosis
k. Parkinson’s Disease
l. Diabetes with amputation or complications affecting
the kidney
m. Cancer that has spread to another area of your body
including lymph nodes; or cancer diagnosed or treated in the past 2 years (except basal cell cancer, squamous cell cancer of the skin or early stage breast or prostate cancer).
n. Organ Transplant

9. Care Coordination Services
How Does Long Term Care Insurance Work?
It provides a “Pool of Benefit Dollars” for long term care when and where needed:
Home Care
Assisted Living Care
Nursing Facility Care
Care Coordination Services
Speak to the slide

10. Multi-Life/Group LTC Insurance LTC Plan Design - The Core Benefits
Daily/Monthly Benefit $100-$500 a day or
$3,000 -$15,000 per month
Benefit Period/Pool of Money – 2,3,4,5, or 6 years (Lifetime benefit period available with full underwriting)
Elimination Period – 0, 30,45 or 90/100 days
5% Simplified or Compound interest

11. “Pool of Benefit Dollars” “Pool of Benefit Dollars”
Designing Coverage
Three Main Decisions:
Monthly Maximum
Benefit Multiplier
Elimination Period
Inflation Protection
Example
$6000 Monthly Maximum
x 60 months (5yrs) Benefit Multiplier
$365,000 Coverage Maximum Today
$730,000 Coverage in 15 Comp. IPO
$365,000 Today
“Pool of Benefit Dollars”
$730,000 in 15 years
“Pool of Benefit Dollars”
Three Main Decisions:
Monthly Maximum: maximum amount the plan will cover each month toward long term care expenses
Benefit Multiplier: maximum number of months the coverage will pay benefits for covered expenses
Elimination Period: similar to a deductible, the number of days of covered care you must pay before the plan begins to pay benefits
Inflation Protection

12. Other LTC Benefit Options
Survivor Paid-Up Benefit – After policy is in force for 10 years, living spouse policy is paid-up after death of other spouse.
Shared Care Benefit – Spouse policy benefits can be shared with other spouse when living and at death.
Premium Payment Paid-Up Options – Premium payments can be paid-up in 10 years or by age 65.

13. Care Management
Assistance in finding an agency or facility to care for you or your loved one.
Someone who’s available to answer all the questions that arise when care is needed.
A helping hand that navigates and guides you through all the tough decisions.
Professional care management- when you need it!

14. Premiums Premiums are waived while on claim.
Guaranteed Renewable – Coverage can not be cancelled as long as premiums are paid on time.
Company reserves the right to increase premiums by class subject to state insurance department approval.

15. LTCI Enrollment Support
Dedicated LTCI Team assigned to each employer
Employee/family educational website
Face-to-Face Employee Education & Enrollment
*Interactive company website for employee enrollment available
Web Cast technology available
Company List or Direct Billing available
*For larger employers in multiple states

16. Pre-Educational/Financial LTC Web Site
Employee/family educational website

17. Employee Enrollment LTC Web Site
Employee enrollment website
Employees can go onto site to view company LTCI plan coverage
Employees can remotely communicate with internal LTC specialist
Employees can request application for coverage
Employees/Family members can view menu of LTC educational information
Web site features direct assistance for care giving referrals