1. 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

2. 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

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

4. 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

5. 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

6. 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...

7. 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

8. 47% of spousal caregivers die before the person to whom they’re providing the care.

9. 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

10. 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

11. 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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13. Cincinnati Average Annual Cost in 2016 and 2036 projected*
Nursing Home Care Cost
Private room $100, ,948
Semi-private room $85, ,250
Assisted Living Facility
Private, one bedroom $48, ,693
Adult Day Health Care
Adult day care $14, ,827
Home Care
Home health aide $50, ,912
*Genworth Cost of Care App

14. 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

15. 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

16. 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

17. 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

18. 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

19. 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

20. THANK YOU! Norm Falick Retirement is about Income 513 604-6657 norm@normfalick.com