Planning for Your Financial Freedom With LongTerm Care Insurance

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Planning for Your Financial Freedom With
Long-Term Care Insurance

• Welcome
• Metropolitan Life Insurance Company
• New York, NY

ADF1179.03
L0312D3J8(exp1205)MLIC-LD
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Coverage is offered in DC, MI, NV, RI, WV and WY
by the folloiwng Metropolitan Life Insurance
Company policies LTC-VAL, LTC-IDEAL, LTC-PREM,
LTC-FAC (LTC-FAC-MI in Michigan). In ID the
Policy Forms are LTC-VAL-ID, LTC-Ideal-ID,
LTC-Prem-ID, and LTC-FAC-ID. In all other
states, the policy numbers are followed by the
states 2-letter abbreviation. Note LTC-FAC is
not available in GA, OR, RI and VT. Like most
long-term care insurance policies, MetLifes
policies contain certain exclusions, limitations,
waiting periods, reductions of benefits and terms
for keeping them in force. Ask your
Representative about complete costs and
details.

• Not A Deposit of Other Obligation of Bank
• Not FDIC - Insured
• Not Insured by Any Federal Government Agency
• Not Issued, Guaranteed or Underwritten by Bank or
  FDIC
• Not a Condition to the Provision or Term of any
  Banking Service or Activity
• Policy is an Obligation of the Issuing Insurance
  Company

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Presentation Purpose

• Explain the importance of Planning for Long-Term
  Care
• Explain the myths associated with Long-Term Care
• Explain how we can help you plan for Long-Term
  Care

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Why do you need to Plan for LTC?

• Help Protect your Family
• Help Protect your Retirement Assets
• Help Protect your Lifestyle

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If you do nothing your Plan may be to

• Have your Spouse or children provide care
• Use your assets when your family can no longer
  provide care
• Apply for Medicaid after almost all assets are
  spent

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What is Long-Term Care?

• The type of care needed if you can no longer
  perform the normal Activities of Daily Living
  (ADLs)
• The type of care needed when you are diagnosed as
  Chronically Ill
• The type of care needed when you have a severe
  Cognitive Impairment, such as Alzheimer's Disease

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What is NOT Long-Term Care?

• Long-Term Care
• Lengthy duration
• Maintain function
• Personal assistance
• Home, assisted living facility, nursing home, or
  adult day care

VS

• Acute Care
• Short duration
• Get better
• Medical care
• Hospital or doctors office

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What are the Activities of Daily Living?
IMAGE

• Bathing
• Dressing
• Eating
• Toileting
• Transferring
• Continence

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What are some of the ailments that may require
Long-Term Care Services?
Nearly half of those requiring Long-Term Care
services are under age 65 -- including 5.3
million working age adults and 400,000
children. Source The Henry J. Kaiser Family
Foundation. Kaiser Commission on Medicaid
Facts. 2001.

• Spinal Cord Injury
• Alzheimers Disease
• Stroke
• Heart Disease
• Mental Retardation

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Where are long-term care services provided?

• At home
• In a community setting, such as an adult day care
  or adult day health centers
• In various facilities that assist people with
  long-term care needs for example, Assisted
  Living Facilities, Residential Care facilities or
  Residential Care Facilities for the Elderly
• In hospice home-care programs or facilities
• In nursing homes

Facility types vary by state. For more
information on the various types of facilities in
your state, consult with you sales
representative.
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Myths Associated with LTC

• It wont happen to me
• Im already covered
• My family can take care of me
• I cant afford Long-term care Insurance

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MYTH 1

• It wont happen to me.

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FACT

• It is estimated that In 2005, about nine million
  men and women over the age of 65 will need
  long-term care
• Stroke is the leading cause of serious long-term
  disability in the United States
• In 1999 more than 1,100,000 American adults
  reported difficulty with functional limitations,
  Activities of Daily Living, etc. resulting from
  stroke.

Sources Health Insurance Association of America.
A Guide to Long-Term Care Insurance. 2002. The
American Heart Association The American Stroke
Association. Heart Disease and Stroke Statistics
2003 Update. 2003.
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MYTH 2

• Im already covered.

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FACT

• Long-Term Personal/Custodial Care is NOT covered
  by
• Individual Medical Plans
• Group Health Plans
• HMOs (Regular or Medicare)
• Medicare
• Medicare Supplement
• Disability Income Insurance

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Who Pays for Long Term Care?
Provided for skilled home care and skilled
nursing home care following a hospital stay on a
limited basis. Source Department of Heath and
Human Services. Centers for Medicare and
Medicaid Services. Office of the Actuary.
Personal Health Care Expenditures. 2001.
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What is Medicare? What does it cover?

• Government health insurance program for people
  age 65 plus
• Pays for skilled nursing facility care of up to
  100 days per spell of illness following
  hospitalization
• Pays for some skilled at-home care but only for
  short-term medical conditions and NOT for ongoing
  assistance

Source Health Insurance Association of America.
A Guide to Long-Term Care Insurance. 2002.
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What is required for Medicare to pay for care in
a skilled nursing facility?

• Must receive skilled care
• Must be a Medicare certified facility
• Must follow a 3-day consecutive hospital stay

• Pays 100 of cost for first 20 days
• A co-payment is required from days 21 through 100
• No coverage after day 100

Source United States Health Council. Long-Term
Care Planning-A Dollar and Sense Guide. 2002.
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What is required for Medicare to pay for Home
Health Care?

• Must need doctor approved at-home skilled care
  and a plan for that care
• Must need intermittent skilled nursing care,
  physical therapy, speech pathology or
  occupational therapy
• Medicare-certified home health agency
• Must be homebound

Source Centers for Medicare and Medicaid
Services. Medicare Basics, A Guide for
Caregivers. 2003.
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Medicare Reality Vs. Perception

• Medicare covered only 13.7 of total nursing home
  and other institutional care expenditures (7)
• Yet
• 55 of Americans age 45 believe Medicare covers
  nursing home stays for 3 months or more for age
  related or other chronic conditions (8)

Sources (7) Department of Heath and Human
Services. Centers for Medicare and Medicaid
Services. Office of the Actuary. Personal Health
Care Expenditures. 2001. (8) AARP (American
Association of Retired Persons). The Costs of
Long-Term Care Public Perceptions Versus
Reality. 2001.
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What is Medicaid? How does it work?

• Federal government pays a share of the medical
  assistance expenditures under each states
  Medicaid program
• Requires spending down to near depletion of
  financial and personal assets
• You may be temporarily ineligible for benefits if
  you transfer assets

Source United States Health Council. Long-Term
Care Planning-A Dollar and Sense Guide. 2002.
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MYTH 3

• My Family Can Take Care of Me

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What sociological changes have impacted
caregiving responsibilities?

• Families no longer in same community
• Working women
• Delayed Childbirth
• Divorce

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FACT

• In a study of Working Caregivers,(10) those
  surveyed said they made at least one formal
  adjustment to their work schedule as a result of
  caring for a partner or other family member
• 16 - Quit Their Job
• 20 - Cut Back to Part-Time
• 22 - Took a Leave of Absence

(10) The MetLife Juggling Act Survey. Balancing
Caregiving with Work and the Costs Involved,
MetLife Mature Market Institute. 1999
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MYTH 4

• I cant afford Long-Term
• Care Insurance

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What is the cost of Long-Term Care?

• The national average cost of nursing home care
  for a semi-private room is 57,765 per year
• A Home Health Care Aide costs an average of
  33,069 per year, based on 18.12 per hour for 5
  hours per day.

Source MetLife Mature Market Institute. The
MetLife Market Survey on Nursing Home Home Care
Costs. 2003
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Compare the Cost of LTC Insurance to the Cost of
Care
Cost of LTC Insurance
National Average Cost of LTC Services
VS.
Ideal Plan , 100 DBA, 4 year Benefit Period,
75 Home Care, 100 Day Elimination Period, 5
Automatic Compound Inflation Note See Outline
of Coverage or Product Brochure for Policy
limitations and exclusions MetLife Mature
Market Institute, MetLife Market Survey on
Nursing Home and Home Care Costs, 2003 ACLI
Study, Can Aging Boomers Avoid the Nursing
Home? March, 2000
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Long-Term Care Insurance can help

• Avoid physical and financial dependence on family
• Protect retirement assets
• Maintain choice on how and where to receive care
• Assure high-quality care

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What to look for in a Long-Term Care Insurance
Company

• Financial strength stability
• History/Reputation
• Proven track record
• Solid Underwriting
• Solid Claims Administration

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How can we help?

• Let us help protect your financial freedom from
  the cost of long-term care!
• Schedule a Meeting today!
• If you decide Long-Term Care Insurance is for
  you, we can help you choose a plan that will meet
  your needs in the future!

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Thank you!