1. A National Challenge… Long-Term Care A gap in health insurance exposes a hole in retirementplanning... Michael E. Wright, CFP Wright Financial Advisors, LLC Registered Representative of and securities offered through OneAmerica Securities, Inc., Advisor.9229 Delegates Row #190, Indianapolis, IN 46240,(317)573-3838, Member FINRA, SIPC, a Registered Investment Advisor. Insurance Representative of American United Life Insurance Company, AUL and other insurance companies. Wright Financial Advisors is not an affiliate of OneAmerica Securities or AUL and is not a Broker/Dealer or Registered InvestmentAdvisor.

2. 2 The Matter in this presentation is designed to provide accurate information with regards to the subject matter covered and is not rendering legal, accounting, or tax advice. For answers to specific questions and before making any decisions, please consult a qualified attorney, tax advisor or other professional to address your specific needs. Registered Representative of and securities offered through OneAmerica Securities, Inc., Advisor.9229 Delegates Row #190, Indianapolis, IN 46240,(317)573-3838, Member FINRA, SIPC, a Registered Investment Advisor. Insurance Representative of American United Life Insurance Company, AUL and other insurance companies. Wright Financial Advisors is not an affiliate of OneAmerica Securities or AUL and is not a Broker/Dealer or Registered InvestmentAdvisor.

3. YOU DO!!!! Who needs to learn about Long-Term care?

4. What is Retirement Planning?

5. Wealth Accumulation

6. Whats Missing from your Retirement Plan?

7. Wealth Preservation Did you know… Long-term care will affect one in two people? Long-term care will affect one in two people? Cost between $50,000 - $100,000 per year? Cost between $50,000 - $100,000 per year? Medicare and traditional health insurance does not pay for long-term care? Medicare and traditional health insurance does not pay for long-term care? The average American loses their entire life savings within eleven months ? The average American loses their entire life savings within eleven months ? LTC.gov, 10/2010; retirement savings report, ebri, 10/2010

8. 8 Workshop Objectives Teach you about long-term care and your new long-term care benefitTeach you about long-term care and your new long-term care benefit Make you aware of a GAP in traditional health insuranceMake you aware of a GAP in traditional health insurance Show how planning for long-term care is related to financial planningShow how planning for long-term care is related to financial planning

9. Financial security Financial security Personal choice and freedom Personal choice and freedom Negative impact on others Negative impact on others Independence and dignity Independence and dignity You love your family You love your family Reasons People Purchase Protection

10. Planforit! Lifestyle

11. Health Insurance vs. LTCi Levels of Care Skilled Skilled Intermediate Intermediate Custodial Custodial (needing help with activities of daily living – ADLs)

12. The Gap in Traditional Health Coverage Skilled Care Medically needed Intermediate Care Less frequent skilled care Custodial Care Help with ADLs or memory 1st 60 Days Next 40 Days After 100 Days Covered Not Covered Covered Not Covered

13. Common Causes for LTC Health Conditions and Illness: Stroke and Heart Attack Stroke and Heart Attack Cancer Cancer Diabetes Diabetes Arthritis and Osteoporosis Arthritis and Osteoporosis Alzheimers, Parkinsons and MS Alzheimers, Parkinsons and MS Young or old, LTC insurance picks up where your health insurance leaves off. Injuries from: Auto and motorcycle accidents Auto and motorcycle accidents Activities like skiing, horse- back riding, diving Activities like skiing, horse- back riding, diving

14. A study by the Department of Health and Human Services indicates that people age 65 face at least 50% lifetime risk of needing long-term care.- 10/2010 Whats the Risk?

15. Youre NEVER too young to plan for Long-term care 40% of the 13 million who need help with basic ADLs are between the ages 18 and 64. - longtermcare.gov 10/2010

16. A Womens Issue will spend in a nursing home 1 in 2 WOMEN will spend AT LEAST ONE YEAR in a nursing home will spend 1 in 3 MEN will spend in a nursing home - longtermcare.gov 10/2010 at LEAST ONE YEAR in a nursing home - longtermcare.gov 10/2010 According to the New England Journal of Medicine:

17. What is the difference between Disability and Long-term Care Insurance? Disability Replaces income Typically ends at retirement Long-term Care Pays for care Coverage continues throughout your life

18. 18 Your home Assisted living Nursing home Places You can Receive Long-Term Care

19. $100,000 a year. longtermcare.gov 10/2010 and in some places the cost can top $50,000 a year, Long-term Care costs an average of

20. Who pays? 60% 50% 40% 30% 20% 10% 0% Medicaid Self & Family Medicare Private Insurance Other Gov. Program

21. Skilled care only Skilled care only Medical progress continues Medical progress continues Medicare 3 day prior hospital stay 3 day prior hospital stay

22. Joint state and federal program Joint state and federal program Pays for health care from poor (welfare) Pays for health care from poor (welfare) Many must spend down their assets to qualify Many must spend down their assets to qualify Medicaid typically will only pay for care in a nursing home Medicaid

23. 23 Spend Down 50% Between $21,912 - $109,560 $21,912 - $109,560 $1,823- $$2,739 IN Medicaid 2011 IN.gov Assets Income $1,500 $674

24. 1935 – 40 workers to 1 retiree 1935 – 40 workers to 1 retiree 1989 – 3.4 workers to 1 retiree 1989 – 3.4 workers to 1 retiree 2020 – 1.8 workers to 1 retiree 2020 – 1.8 workers to 1 retiree Dont count on the Government

25. Your health plan does NOT cover long-term care HMOs HMOs Health insurance Health insurance Medicare Medicare Medicare supplements Medicare supplements

26. 26 Federal legislation shows intent Health & Welfare Reform of 1996 Deficit Reduction Act of 2005 TAX-DEDUCTIBLE premiums & TAX-FREE benefits Increased lookback period Reduced ability to use annuities to shield assets State Partnership Programs Medicaid spend down protection CLASS Act Voluntary Government LTCi Plan

27. Your home Assisted living Nursing home Types of Care LTCi will Pay

28. 28 Benefit Triggers Need assistance with 2 of 6 ADLs Bathing Dressing Transferring The deterioration or loss of intellectual capacity Alzheimers OR Toileting Feeding Continence

29. 29 Waiver of Premium Premiums stop when you are receiving benefits

30. 30 Fixed Premium Premiums are fixed to the age you purchase coverage

31. 31 What is the Cost of Waiting? Lifetime premium payments are always higher the longer you waitLifetime premium payments are always higher the longer you wait You risk not being able to get approved when you apply due to pre-existing medical conditionsYou risk not being able to get approved when you apply due to pre-existing medical conditions

32. 32 Benefits for Town of Framingham Education for employees at a young age while protection is least expensiveEducation for employees at a young age while protection is least expensive ONE-TIME offer of Simplified Underwriting for eligible employees & spousesONE-TIME offer of Simplified Underwriting for eligible employees & spouses Premium discounts for employees, spouses and family membersPremium discounts for employees, spouses and family members

33. 33 Plan Design Options

34. 34 Long-Term Care Myths Its covered by traditional health insurance and MedicareIts covered by traditional health insurance and Medicare Its something you look at in your 60sIts something you look at in your 60s LTC insurance only pays for a nursing homeLTC insurance only pays for a nursing home It will never happen to meIt will never happen to me Long-term care insurance is expensiveLong-term care insurance is expensive

35. 35 Solving the problem Closing the HOLE in financial planning… Registered Representative of and securities offered through OneAmerica Securities, Inc., Advisor.9229 Delegates Row #190, Indianapolis, IN 46240,(317)573-3838, Member FINRA, SIPC, a Registered Investment Advisor. Insurance Representative of American United Life Insurance Company, AUL and other insurance companies. Wright Financial Advisors is not an affiliate of OneAmerica Securities or AUL and is not a Broker/Dealer or Registered Investment Advisor.