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Planning for Your Financial Freedom With Long-Term Care Insurance

Planning for Your Financial Freedom With Long-Term Care Insurance. Welcome Metropolitan Life Insurance Company New York, NY. ADF#1179.03. L0312D3J8(exp1205)MLIC-LD.

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Planning for Your Financial Freedom With Long-Term Care Insurance

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  1. Planning for Your Financial Freedom With Long-Term Care Insurance Welcome Metropolitan Life Insurance Company New York, NY ADF#1179.03 L0312D3J8(exp1205)MLIC-LD

  2. 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 state’s 2-letter abbreviation. Note: LTC-FAC is not available in GA, OR, RI and VT. Like most long-term care insurance policies, MetLife’s 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

  3. 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

  4. Why do you need to Plan for LTC? • Help Protect your Family • Help Protect your Retirement Assets • Help Protect your Lifestyle

  5. 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

  6. 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

  7. What is NOT Long-Term Care? VS • Long-Term Care • Lengthy duration • Maintain function • Personal assistance • Home, assisted living facility, nursing home, or adult day care • Acute Care • Short duration • Get better • Medical care • Hospital or doctor’s office

  8. What are the Activities of Daily Living? • Bathing • Dressing • Eating • Toileting • Transferring • Continence IMAGE

  9. What are some of the ailments that may require Long-Term Care Services? • Spinal Cord Injury • Alzheimer’s Disease • Stroke • Heart Disease • Mental Retardation 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.

  10. 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.

  11. Myths Associated with LTC • It won’t happen to me • I’m already covered • My family can take care of me • I can’t afford Long-term care Insurance

  12. MYTH #1 “It won’t happen to me.”

  13. 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.

  14. MYTH #2 “I’m already covered.”

  15. 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

  16. 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.

  17. 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.

  18. 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.

  19. 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.

  20. 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.

  21. What is Medicaid? How does it work? • Federal government pays a share of the medical assistance expenditures under each state’s 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.

  22. MYTH #3 “My Family Can Take Care of Me”

  23. What sociological changes have impacted caregiving responsibilities? • Families no longer in same community • Working women • Delayed Childbirth • Divorce

  24. 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

  25. MYTH #4: “I can’t afford Long-Term Care Insurance”

  26. 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

  27. 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

  28. 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

  29. What to look for in a Long-Term Care Insurance Company: • Financial strength & stability • History/Reputation • Proven track record • Solid Underwriting • Solid Claims Administration

  30. 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!

  31. Thank you!

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