1 / 22

Long Term Care is a Family Affair

Long Term Care is a Family Affair. A Presentation on Long Term Care Planning. Presented by: Gary L. Roden, CLTC Long term care insurance underwritten by General Electric Capital Assurance Company. 37678 09/26/05 Exp. 12/31/05. © 2005 Genworth Financial, Inc. All rights reserved.

thanh
Download Presentation

Long Term Care is a Family Affair

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Long Term Care is a Family Affair A Presentation on Long Term Care Planning Presented by:Gary L. Roden, CLTCLong term care insurance underwritten byGeneral Electric Capital Assurance Company 37678 09/26/05 Exp. 12/31/05 © 2005 Genworth Financial, Inc. All rights reserved.

  2. We are better off today than we’ve ever been. Through research, medical advances and technology we have more control over the quality and longevity of our lives.100 years ago the average life expectancy in the U.S. was 47 years. The average has increased to 77.1 1National Center for Health Statistics. Health, United States, 2004. With Chartbook on Trends in the Health of Americans.

  3. We’re fortunate that we may live a long life. Consider… • If you had all of the time in the world • how would you want to spend it? • Enjoying your hobbies? • Spending time with your family? • Volunteering? Unfortunately, when we live a long life, we may get sick.

  4. Living a long life is more of a reality today. Planning for that long life is a necessity.

  5. Long term care is not only about you.It’s about you and your family.

  6. Four types of people: There are only four kinds of people in the world:those who have been caregivers; those who are currently caregivers; those who will be caregivers; and those who will need caregivers.” “ Former First Lady Rosalynn Carter Excerpt from “Helping Yourself Help Others: A Book for Caregivers” with Susan K. Golant

  7. What is long term care? • Long term care can be broadly defined as care provided by another party for the benefit of those who are unable to care for themselves. • It is provided for an extended period of time. Long term care is personal care assistance.

  8. Where is long term care delivered? • Where you need it. • Not just in nursing homes. • Often in your own home.

  9. Don’t forget…Long term care is not just about you -- it’s about you and your family.

  10. The national average costs are: Home Care Providers Certified Home Health Aides: $18.54 per hour Non-certified Homemaker services: $16.82 per hour Assisted Living Facilities Private one-bedroom unit: $2,500 per month or $30,300 per year Some charge a one-time community or entrance fee Range between $75 and $8,000 National average of $1,500 Nursing Homes Private room: $69,400 Semi-private room: $61,000 Urban areas are 12% greater than non-urban areas, on average What does long term care cost? Source: 2005 Genworth Financial Cost of Care Survey. Conducted by CareScout, an independent research organization. 5/2005. Survey results are available from the company or one of our representatives.

  11. Funding options: Your FamilyOut of love and necessity, families help.The GovernmentMedicare and Medicaid generally limit your options. Self-Insure / Your Personal SavingsJeopardize your goals and may be costly.Long Term Care InsuranceTransfers some of the risk away from you. May prevent invasion of principal.

  12. Funding options: Your FamilyOut of love and necessity, families help.The GovernmentMedicare and Medicaid generally limit your options.Self-Insure / Your Personal SavingsJeopardize your goals and may be costly.Long Term Care InsuranceTransfers some of the risk away from you. May prevent invasion of principal.

  13. Funding options: Your FamilyOut of love and necessity, families help.The GovernmentMedicare and Medicaid generally limit your options.Self-Insure / Your Personal SavingsJeopardize your goals and may be costly.Long Term Care InsuranceTransfers some of the risk away from you. May prevent invasion of principal.

  14. Medicaid does cover long term care services May limit your options Requires qualification based on need Level of need is determined by the State Funding options: Medicaid may put your financial assets at risk.

  15. Funding options: Your FamilyOut of love and necessity, families help.The GovernmentMedicare and Medicaid generally limit your options.Self-Insure / Your Personal SavingsJeopardize your goals and may be costly.Long Term Care InsuranceTransfers some of the risk away from you. May prevent invasion of principal.

  16. Potential impact of long term care expenses: $500,000 could be depleted in 5 to 6 years. $500,000 $500,000 $412,750 $315,525 $250,000 $207,546 $87,980 1st Year 2nd 3rd 4th 5th $0 ($44,062) FOR ILLUSTRATIVE PURPOSES ONLY. Assumptions: $500,000 savings earning 5% net of expenses, current Long Term Care costs $69,400 per year in Private Room with 5% simple inflation increase annually, community spouse requires $42,850 annual withdrawal w/a 5% simple inflation increase each year. All earnings and withdrawals occur at the beginning of each year. Does not take into account any additional income the community spouse may be earning.

  17. Funding options: Your FamilyOut of love and necessity, families help.The GovernmentMedicare and Medicaid generally limit your options.Self-Insure / Your Personal SavingsJeopardize your goals and may be costly.Long Term Care InsuranceTransfers some of the risk away from you. May prevent invasion of principal.

  18. Potential impact of premium on savings: • Pay Long Term Care insurance premium out of savings • Long Term Care insurance helps protect the savings $656,444 $600,000 $500,000 $400,000 1st Year 2nd 3rd 4th 5th 6th 7th FOR ILLUSTRATIVE PURPOSES ONLY. Assumptions: $500,000 savings earning 5% net of expenses, current Long Term Care insurance premium of $2,000 deducted annually. All earnings and withdrawals occur at the beginning of each year. Does not take into account any other additions or deductions that may occur from this account.

  19. Long Term Care Insurance: • Pays for covered custodial and community care. • Benefits are paid for covered care you receive. • Helps to protect your financial strategies. Long term care insurance doesn’t replace the need for care – it builds on it, allowing the caregiver to take care of you better and for longer.

  20. What to look for in a Long Term Care insurance policy. Basic Policy Features Benefit Amount • Applied as a daily or monthly amount Elimination Period • How long is the “deductible?” • How many choices? Lifetime Benefit Amount • Limited or unlimited Home Care Policy Exclusions All policies have • Be sure to ask about them.

  21. If you don’t do it for yourself, do it for your family. Help protect your financial assets. Help protect your family’s goals. Plan today and help secure your future!

  22. Questions? Thank you for attending !

More Related