Planning for LongTerm Care

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Planning for Long-Term Care

• Planning for Longevity

Not a Deposit Or 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
ADF1584.05(Rev10/05)(TX) Metropolitan Life
Insurance Company LTC03987(1108) L10086469(exp
0909)(TX)
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What is your current lifestyle?

• Family
• Occupation
• Recreation

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if you needed long-term care services?
What would you do
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What is long-term care?

• The care required when you are no longer able to
  care for yourself independently
• Assistance with Activities of Daily Living
  (ADLs)
• Dressing
• Toileting
• Bathing
• Eating
• Continence
• Transferring (e.g., moving into or out of a bed,
  chair or wheelchair
• Substantial supervision for a severe cognitive
  impairment, such as Alzheimers disease

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Where are long-term care services provided?

• At home
• In various facilities that assist people with
  long-term care needs for example, Assisted
  Living Facilities, Residential Care Facilities
  and Residential Care Facilities for the Elderly
• In community settings, such as Adult Day Care
  Centers
• In Hospice home-care programs or facilities
• In Nursing Homes/Nursing Facilities

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What types of care are provided in the US today?

• Personal Care (custodial care)
• Care provided by someone, other than a
  nurse, who assists with Activities of Daily
  Living, in response to chronic health-care needs
• Skilled Nursing Care
• Care provided by a nurse (an R.N. or
  L.P.N.) on a 24-hour basis must be ordered by a
  physician

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who needed long-term care services, either at
home or elsewhere?
Have you ever known someone
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Could it happen to you?

• Nearly 40 of people currently needing long-term
  care services are working age adults1
• Home care claimants receive an average of 59
  hours of care per week 36 hours of formal home
  care and 23 hours of family care2
• People age 65 face at least a 40 lifetime risk
  of entering a Nursing Home/Nursing Facility3
• The average Nursing Home/Nursing Facility stay is
  2.4 years4 and 10 of residents will stay five
  years or longer5

1Georgetown University Long-Term Care Financial
Project, Who Needs Long-Term Care?
2003. 2Cohen, M., Miller, j, and Weinrobe, M., A
Descriptive Analysis of Patterns of Informal and
Formal Caregiving Among Privately Insured and
Non-Privately Insured Disabled Elders Living in
the Community, 1999. 3Americas Health Insurance
Plans (AHIP), formerly Health Insurance
Association of America (HIAA), Guide to
Long-Term Care Insurance, 2002. 4National Center
for Health Statistics, U.S. Department of Health
and Human Services, The National Nursing Home
Survey, June, 2002. 5Americas Health Insurance
Plans (AHIP), Guide to Long-Term Care
Insurance, 2002.
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What is the average cost of care?
6MetLife Mature Market Institute, The MetLife
Market Survey of Adult Day Services Home Care
Costs, October 2008 7MetLife Mature Market
Institute, The MetLife Market Survey of Nursing
Home Assisted Living Costs, September, 2008.
(Home Health Care costs based on home health
aide at 5 hours/day x 5 days/week. Home Health
Care hours and days can vary based on specific
circumstances. Nursing Home/Facility costs based
on semi-private room, 7 days/week.
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National Spending on Nursing Home Care, 20048
Other Private 3
Other Public 2
Private Insurance 7
Total 115.2 billion
Medicare 12
Medicaid 50
Out-of-Pocket 26
8Kaiser Commission on Medicaid and the Uninsured,
Medicare and Long-Term Care, July, 2006.
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What about Medical or Disability Income Insurance?

• Medical insurance pays for some skilled care, but
  does not generally pay for personal care
  (custodial care)
• Disability Income Insurance is designed to help
  replace a portion of the disabled persons
  income, which is needed to pay for expenses such
  as mortgage, utilities and food. Disability
  Income Insurance was not designed to pay for
  long-term care services

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Does Medicare pay?

• Medicare covers only 14 of long-term care costs
  on a national basis9
• Medicare does not pay for personal care in a
  Skilled Nursing Facility (if that is the only
  kind of care you require)10

9Kaiser Commission on Medicaid and the Uninsured,
Medicare and Long-Term Care, July, 2006. 10The
National Underwriter Company, All About
Medicare, 2002.
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Does Medicaid pay?

• Medicaid is government funding intended for those
  who meet certain income and asset criteria
• Medicaid requires spending down of personal
  assets
• You may be temporarily ineligible for benefits if
  you transfer your assets

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What other risks have you insured against?

• Chances are, you pay premiums to ensure that your
  car or belongings will be repaired or replaced if
  they are damaged. Doesnt it make sense to make a
  similar commitment to your own well-being by
  purchasing Long-Term Care Insurance?

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Why do people purchase Long-Term Care
Insurance?11

• To avoid depending on family or friends
• To help maintain options regarding how and where
  to receive care
• To help ensure high-quality care, at an
  affordable price
• To avoid using retirement income and assets to
  pay for long-term care services

11American Council of Life Insurance (ACLI),
Making the Retirement Connection The growing
importance of long-term care insurance in
retirement planning, Stucki, B., March 2001.
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How do people pay for long-term care services?

• Often, people turn to their
• retirement savings, or
• personal assets

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How long can you afford to pay for long-term care
services using your retirement savings?

• Long-Term Care Insurance can help you plan for
  future possibilities, and may help you extend
  your retirement savings

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• Why choose MetLife?

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Industry experience

• More than 140 years of insurance experience

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One-on-One Support

• MetLife professionals are available to offer
  expert advice and to answer any of your questions
  about long-term care or your coverage.
• MetLife can help in identifying long-term care
  resources and facilities in your community.

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How do I obtain coverage?

• Complete and submit an application
• MetLifes Underwriting Department reviews the
  application, (this coverage is medically
  underwritten)
• If you are approved for coverage, policy will be
  issued
• Review your policy, sign, and return the
  necessary policy documents

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• Metropolitan Life Insurance Company (MetLife)
  Long-Term Care Insurance policies are guaranteed
  renewable. This means that once a policy is
  issued, it cannot be cancelled due to an increase
  in your age or a change in your health. Premium
  rates can only be raised as the result of a rate
  increase made on a class-wide basis in the state
  where the policy is issued and approved by the
  Department of Insurance.
• Like most Long-Term Care Insurance policies,
  MetLifes policies contain certain exclusions,
  limitations, elimination periods, reductions of
  benefits and terms for keeping them in-force. For
  complete costs and details, please contact your
  MetLife Representative/Insurance Agent/Producer.
  
• This advertisement describes coverage offered by
  MetLife. Depending upon state availability,
  coverage may be offered by the following MetLife
  policies LTC2-VAL, LTC2-IDEAL, LTC2-PREM,
  LTC2-FAC. In some states, coverage may be
  offered by the above-referenced policy numbers
  followed by the states 2-letter abbreviation
  the state's 2-letter abbreviation plus "ML" for
  Multi-Life policies or the state's 2-letter
  abbreviation plus "P" for Partnership policies.

ADF1584.05(Rev10/057)(TX) Metropolitan Life
Insurance Company LTC03987(1108)
L10086469(exp0909)(TX)