1. Changing the way we view Long-Term Care Insurance

2. What image is in your mind?
835 days

3. National LTC Average Cost
Skilled Nursing Homes - Daily Averages
Semi-Private Room $238 $7,140/Month                                  
Private Room $273  $8,190/Month  
Home Health Care – Hourly Averages*
Homemaker Services $ hr/week Care = $3,861/Month
Home Health Aide $ hr/week Care = $4,004/Month      
Assisted Living Facilities – Monthly Averages
Studio Apt $3,878
1 Bedroom Apt $4,383
2 Bedroom Apt $4,672
Source:
*Genworth 2016 Cost of Care Survey, conducted by CareScout®, April 2016¹ Based on 44 hours per week

4. Downside to Traditional LTC Insurance
Expensive
Increasing premiums

5. Downside to Traditional LTC Insurance
Use it or lose it
No cash value
No death benefit

6. Alternative LTC Options
Guaranteed premiums
Cash value available
Death benefit if LTC not needed

7. Choosing the “BEST” LTC Option
Things to Consider
Source of funds
Age
Frequency of payments
What is important?
Cash value
Benefit for Beneficiaries
Long-term care coverage

8. Choosing an LTC Option Life-Based LTC Policy
Source of Funds: Savings, CD, Liquid investment with minimal taxes
Age: 50’s ad 60’s
Frequency of payments: Single premium or 10 pay
What is important
Long-Term Care Protection
Access to premium
Benefit for Beneficiaries

9. Life-Based LTC Option or or *65 year old male $100,000 NQ premium
Benefits if you need long-term care
A benefit if you don’t
Return of premium options
3% Compound Inflation or or
Total LTC Benefits
Initial Specified Amount
ROP Benefit
Total LTC Benefit
Year 1: $334,685
Age 80: $521,429
Max. Monthly Benefit
Year 1: $4,312
Age 80: $6,718
$148,000 Year 1, 85
100
$100,000
Providing at least 6 years of coverage
Death Benefit paid income tax-free
to beneficiary
Policy Vested Policy Vested
Year ROP% Year ROP%
1 80.0% %
3 88.0% %
5 96.0% %
*65 year old male $100,000 NQ premium

10. Choosing an LTC Option Annuity-Based LTC
Source of Funds: NQ Annuity, Savings, CD, Liquid investment with minimal taxes
Age: Upper 60’s through 80
Frequency of payments: Single premium
What is important
Long-Term Care Protection
Access to premium
Asset Protection to Beneficiaries

11. Pension Protection Act of 2006 (“PPA”)
Provides tax advantages to PPA compliant annuity holders who take distributions for the purpose of Long-Term Care expenses.

12. Annuity Based LTC Insurance
Global Atlantic ForeCare Product details
Single Premium (Non-qualified funds)
Minimum deposit: $35,000*
Rider Charge is guaranteed to remain unchanged through the life of the contract and cannot invade the contract value from the previous month
9 year surrender schedule
Issue Ages 50-80
*May vary by state
**Market Value Adjustment applies during withdrawal charge period

13. When used for qualified Long-Term Care Benefits
Case Study 1
Total Coverage
$300,000
Lillian | 77 Year Old Female $100,000 NQ Fixed Annuity earning 2.5% Cost Basis: $70,000
Additional
Coverage
$200,000
ForeCare
Multiplier 3X
When used for qualified Long-Term Care Benefits
$100,000
$100,000
Taxable Growth
$30,000
Taxable Growth
$30,000
Taxable Growth
$30,000
TRANSFER
Existing annuity into PPA-compliant
ForeCare annuity
Cost Basis
$70,000
Cost Basis
$70,000
Cost Basis
$70,000
Traditional Annuity
Traditional Annuity
ForeCare Annuity

14. Simple New Business Process
Fill out Medical Questionnaire and HIPPA form with your client
Fax it to Global Atlantic
Global Atlantic will call within 15 minutes (you can call interview team)
Approval process is minutes
If approved, complete application
Send to PCN (using PCN UPS slip)

15. Choosing an LTC Option Life Insurance with Rider
Source of Funds: Child
Age: 30’s through 70’s
Frequency of payments: Annual
What is important
Benefit for Beneficiaries
Long-Term Care Protection
Access to premium

16. Traditional Life with LTC Rider
Case Study
Claudia: 70, good health
Investable assets committed to income
Michelle: 45, married both work
Saving for retirement – Good income
Concern of care for mom and impact on family

19. Choosing an LTC Option Life Insurance Source of Funds: Qualified Asset
Age: Knowledge of income surplus
Frequency of payments: Annual
What is important
Asset Protection for Beneficiaries
Long-Term Care Protection
Access to premium

20. Traditional Life Case Study John and Sue – age 70 $300,000 in IRA
Don’t need RMD income to supplement retirement
Concern of care and family burden

22. PCN: Your Source for LTC Planning
We have the tools and the expertise to help
Education
Marketing and Communication
Service
And a dedicated team to help you every step along the way…

23. Education
Our Internal Marketing Consultants can provide you education so that you can speak to your clients with confidence.
In depth product education
Sales ideas
Competitive product analysis

24. Marketing Assistance
Producers Choice has a Creative Design Team here to assist:
Promotional materials
Client-friendly marketing materials
Event invitations
And much more…

25. Client Communication
We have client friendly marketing pieces available for your use
Surveys
Handouts
Marketing pieces

26. Client Educational Event Planning
Step by step process
Assistance in picking a venue
Personalized event invitations
Guest speaker

27. At Your Service Underwriting assistance Dedicated case managers
UPS service