1. 1 Options for Funding Long- Term Care in Minnesota: A consumer perspective Kelli Jo Greiner Minnesota Board on Aging Consumer Information Assistance and Advocacy Team 4/2/04

2. 2 Beyond LTC Insurance zReverse Mortgage Annuity yAn annuity is purchased with a portion of the loan amount yAnnuity continues if borrower sells home or moves yAvailable on a limited basis yConsiderations xSame as Reverse Mortgage xMay include additional charges x Tax implications

3. 3 Beyond LTC Insurance zLTC Annuities - Deferred yAvailable to age 85; 7 broad health questions most can satisfy yTwo funds; one for LTC expenses, the other is a regular cash fund yConsiderations xIf LTC fund not used, can be passed to beneficiaries xNeed to plan for inflation xLTC costs may exceed benefit amount xTax implications

4. 4 Beyond LTC Insurance zLTC Annuities - Immediate yAvailable to someone who is uninsurable or already receiving LTC ySingle premium payment converted into monthly income yPay out schedule is based on age and gender yConsiderations xResources may be limited if inflation is not planned for xIncome stream may be insufficient xTax implications

5. 5 The Issues zComplex issues zIs income and asset base sufficient to warrant purchase of annuity? zHas comprehensive long-term care planning been done? zThe bottom line is that each of these options has pros and cons and there is no “one perfect option” zSenior LinkAge Line® has received very few inquiries about these options

6. 6 Education, education, education zIncrease awareness and role of these LTC funding options zShould be yEasy to understand yComprehensive yObjective yFocused on the individual being assisted

7. 7 The Senior Linkage Line® and private options for funding long- term care zGoal: Help Minnesotans understand private funding optionsand the role it can play in meeting their long-term care needs. zProvide objective, comprehensive information on LTC policies available in MN

8. 8 CMS LTC Initiative Helping American Families Find and Pay for Quality Long-term Care zGoal: Increase consumer awareness of the options available to plan for and finance long- term care, including long-term care insurance, use of reverse mortgages, and annuities. zNational Rollout - April 2004

9. 9 Senior LinkAge Line® zAvailable statewide by calling 1-800-333- 2433 zState Health Insurance Assistance Program (SHIP) for Minnesota zwww.MinnesotaHelp.info™ - Statewide resource database with thousands of long-term care resources