1. 1 Your Family, Your Future: The Heart of Long Term Care Planning Laurie Paulsen & Peter Moeschler

2. 2  About 38.9 million people in US are over age 65  One in two people age 85 need LTC 1  The need for LTC is not limited to older Americans.  44% of those needing LTC will be over the age of 65. 2 LTC services may be necessary at any age. Older adults may gradually find day-to-day living increasingly difficult. Younger adults may suffer a heart attack, stroke, disabling accident or develop a chronic illness. Long-term care services are generally custodial and personal in nature but, in some cases, may be rehabilitative. To be continued… Did you know…

3. 3  Neither medical insurance, Medicare, or Social Security are designed to pay for LTC.  LTC insurance can help pay for care.  LTC insurance can help retain assets.  LTC insurance can help retain independence. This presentation is a general introduction to LTC insurance. It defines terminology generally used in industry and presents basic issues answers to frequently asked questions. Did you know…

4. 4 People are over five times more worried about being a burden on their family than dying. Uninsured medical expenses are the top financial worry among men and women age 55+. People rank Alzheimer’s as their single greatest fear among disabling diseases in later life. While two-thirds of people will actually need some long term care, such as home care, assisted living, or nursing home care, after they reach age 65, only 35% of people believe they will be the one to need such care.

5. 5 After turning age 65 More than 5 years20% 2 – 5 years20% 1 – 2 years12% 1 year or less17% No years31% Estimated years of LTC need…

6. 6 Nursing Home Costs for Private Room National average daily rate = $220 per day National average yearly rate = $80,300 Home Health Care Costs for Home Health Care Aides National average hourly rate = $21.00 Assisted Living – Base Rate Monthly - $3,100 National average yearly rate = $37,200 Source: American Association for Long-Term Care Insurance 2010 LTCI Sourcebook The Cost of LTC Services

7. 7 There are basically five ways to pay for LTC. 1.Self-Insure 2.Medicaid/ Title 19 3.Medicare 4.Long-Term Care Insurance 5.Reallocation – Hybrid Products A.Annuity with LTC Benefits B.Life Insurance with LTC Benefits How are LTC Services Paid for?

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