Post on 07-Jan-2016
description
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CLTC Objection Handling Webinar
Presented by CLTC
www.ltc-cltc.com
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Presented By:
D. Corey Rieck, MBA, CLTC
On Behalf of CLTC
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Results to be achieved today
• What kind of client/prospect do you have?
• Handling Funding responsibility related issues.
• Handling the “I’ll take care of mom..” issue.
• Handling the “Government will take care of me” issue...
• Handling the “My family will take care of me response.”
• Handling the “I’ll shoot myself” response
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Results to be achieved today
• Handling the “I’m already covered” response.
• System of follow-up for late adopters• Properly setting Underwriting
Expectations• Using your experience
• Bonus:• CLTC Grad Benefits/Overview of
Appendix 8 and Appendix 9 included on this PPT for your further assistance.
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Introduction
• Introduction of D. Corey Rieck, MBA, CLTC• Personal Experience; the translation
of which can help your clients understand the need and urgency of proper LTC planning.
• CLTC Instructor since 2003• Personal Producer since 1999
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Introduction
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Need any further proof..
• The Long Term Care Issue and its associated challenges can present themselves to you and your family at any time and acts independently of age:• Mom—45—M.S. Diagnosis• Dad----70—Esophageal Cancer
Diagnosis• Jackie—19 mos. Neuroblastoma
Diagnosis• Grandfather—85 Yrs old CLL
Diagnosis
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Your Experience• Do you consider it important to have
your clients/prospects know who you are and what your personal experience is?
• Shouldn’t they know who they’re doing business with?
• 4 Steps• Who are you?• Who do you work for?• What will you accomplish?
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Your Experience
• Have you personally had the LTC Experience?
• How do you help people understand what it could mean?
• Two Kinds of clients/prospects..how best to classify?
• Use your experience to educate and gain the upper hand.
• No one can take your experience away or dispute.
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Handle the objections before they become
objections• Have you personally had the LTC
Experience?• How do you help people understand
what it could mean?• Two Kinds of clients/prospects..how best
to classify?• Shouldn’t you tell them what it means if
they take your advice...• If they don’t take your advice?• Carrier Cost Surveys and their role
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Set the expectation that no one is funding this but
you...• Right Now, there are 35 million people
in the U.S. that are 65 years of age or older, and in 20 years, that number is projected to triple.
• Medicare changes, Medicaid changes, Federal LTC program implementation, Partnership Programs...• Got time to discuss the Budget?
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Access the specialized knowledge
• Do I personally do what is necessary to become the Long Term Care Expert or do I just partner with one and split the case accordingly?
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Education
• How come we haven’t helped more people with Long Term Care Planning?
• 8%---10% penetration currently• Roughly 300 million people live in the
U.S. • Maybe it was the way we positioned the
product?
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Prior to CLTC we...
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Education/Expectation Setting
• Using statistics to open up a conversation
• Selling fear• “Disturbing”• Showing pictures of burning buildings• Using “Risk” to help sell this• Talking about all of the choices
someone will have with LTC : (Home Care, ACLF, NH, ADC)
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Education/Expectation Setting
• “How would changing your parent’s diaper make you feel?”
• LTCI is about protecting assets• Often sold by arguing or debating with
clients• Often sold to individuals• Often just a product push• Inadequately handling client objections
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The “Old Way”
• How did we handle these objections/myths?• “I’ll take care of mom.”• “It’s that nursing home stuff.”• “I’m already covered.”• “The Government will take care of
me.”• “My Family will take care of me.”• “I can self fund.”• “It’ll never happen to me.”
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The “Old Way”
• How did we handle these objections/myths?• “I’m covered under my Health
Insurance.”• “I’m covered under my Disability
Income.”• “I’m never going to a nursing home.”• “The government paid for my______,
so that means they will pay for me.”• “I’ll put a gun in my mouth.”
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The “Old Way”
• How did we do using these techniques?• Inadequate LTC education• Inadequate expectation setting • The reputation of the product• Less than stellar delivery of the product
• “You know…there is a 1 in 2 chance you might need this……”
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The “Old Way”
• Don’t clients think the worst is always going to happen to someone else?
• Risk remains constant in a clients mind, what often doesn’t remain constant are responsibilities
• Risk implies chance…chance implies odds, and everyone is going to beat the odds…
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The “Old Way”
• Did you think the Bellagio got built by people beating the odds?
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Expectation Setting
• How many of you have had to participate or otherwise manage care directly in an LTC situation?
• Was there/were there:• Assets allocated for this issue?• If not, who or what paid for the
care?• Geography involved?• Siblings involved?
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Expectation Setting• Did your relationship with your siblings
change as a result?• What effect, if any did it have on all
involved emotionally, physically?• How did it affect your lifestyle?• Your career?• Your relationship with your spouse?• If you have had both experiences, (I.e.
managing the care directly or managing remotely, which do you prefer?)
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Expectation Setting• How many of you have sold an LTC
Policy?• Do you own it yourselves?• Have clients asked: “What have you
personally done about this?”• If you haven’t completed this; what is
your response?• Clients may tell you..”Do for me what
you did for yourself…”
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Expectation Setting• The way to avoid an argument with a
client is not to get into it in the first place.
• Use the CLTC 3 step process• Ask open ended questions• Don’t batter your client with statistics
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Two Kinds of Clients
• Type I/Track I Client:• Those that have had the LTC
Experience and are aware of the issues and associated challenges involved….
• Ask the question..”What does Long Term Care mean to you?”
• A client that has had the experience will most likely relate their experience to you.
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Two Kinds of Clients
• Type I/Track I Client:• Ask the follow-up questions:• “Were there resources allocated to
pay for LTC?”• “If so, how?”• “If not, what paid for it? Who paid
for it?”• “Were there siblings involved?”
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Two Kinds of Clients
• Type I/Track I Client:• Ask the follow-up questions:• “Did your relationship change with
them as a result of your/their involvement?”• “Was there geography involved?”• “How was everyone’s lifestyle
affected as a result?”
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Two Kinds of Clients
• Type II/Track II Client:• Those that are willing to take the
next logical step in financial planning
• You maybe have helped these clients with other financial planning issues
• They have shown a prior logic pattern of financial planning
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Two Kinds of Clients• Type II/Track II Client:
Asset & Asset Protection
Income Portfolio PortfolioIncome Disability IncomeFamily Life Insurance
Wealth More Life Ins. 401K/IRA/Annuities ???????
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Two Kinds of Clients
• “Listen..over the years, I’ve helped you protect your income with Disability Income, your family with Life insurance, your wealth with more life insurance, and I have helped you accumulate these assets..one thing we need to address is protecting your assets (I.e. 401K, IRA, etc) so they can execute for the manner in which their intended.”
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Two Kinds of Clients
• Isn’t this a little different than the old way of: “You know…there is a 1 in 2 chance that you will need to go to a nursing home.”• Less threatening• Less awkward• Less off-putting• Creates the opportunity for an
interview
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Two Kinds of Clients
• Proper Long Term Care Planning protects Assets. Assets produce Income. Income produces lifestyle.
• If clients do not plan for the LTC issue and its associated challenges properly, their lifestyle, relationships, assets and income are at risk; not to mention their entire financial plan.
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Education and Expectation Setting
• Longevity• What used to kill us doesn’t necessarily
do so anymore• Life Expectancy Progression• Medical Advancements• Clients taking better care of themselves• Translation?
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Who is your biggest competitor?
• Is it the independent agent down the street?
• The Career Genworth LTC Agent?• The Mass Mutual, New York Life or
Northwestern or Banker’s Life Agent?• The CFP or Wachovia Securities or
Edward Jones Financial Advisor?• The Raymond James Representative?
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Who is your biggest competitor?
• No. These are not your competition for LTC.
• Your competition is your/our clients/prospects thinking that someone else or something else will pay for their Long Term Care.
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Who is your biggest competitor?
• What messages have the Federal Government sent us over the years?• Medicare Reform• Medicaid Reform• DRA• Own Your Future Campaigns• Federal LTC Program• Partnership Plans
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Who is your biggest competitor?
• Medicare Reform: (messages)• Prospective Payment System
implemented in early 80’s• Patients discharged “Sicker and
quicker”• Movement from Fee for Service to Flat
Fee• Balanced Budget Act of 1997 (BBA
97) which took effect 1.1.98• Removed any meaningful LTC
reimbursement for custodial care
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Who is your biggest competitor?
• Medicare Reform: (messages)• Medicare reimbursed NH stays went
from an average of 50 days to 14-21 days as a result
• Your client may tell you…”Medicare will pay for me…You’ll tell them…No it won’t.”
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Who is your biggest competitor?
• Medicare Reform: (messages)• Your client or prospect may tell
you…”Medicare paid for my _____;”---ask them when it was. If it was prior to 1.1.98 (prior to BBA of 97) then there is a good chance that Medicare did pay for the LTC of the person involved.
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Who is your biggest competitor?
• Medicaid Reform: (messages)• Open to state interpretation;
Individualized by State• Effect on artificial
impoverishment/Medicaid Planning
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Who is your biggest competitor?
• DRA (Deficit Reduction Act)• New Home Equity Limits that can
effect eligibility for Medicaid• Look Back Period Adjustment on
transfers from 3 years to 5 years• Effect on CCRC Entrance Fees as it
relates to Medicaid spend down (considered available)
insurancestudy.com
Deficit Reduction Act of 2005
insurancestudy.com
• In 2005 Congress passed the DRA-effective February 8, 2006
• Legislation contained provisions affecting Medicaid– Changes regarding exemption • Assets• Annuities• Home Equity Ownership
– Elimination of prior restrictions on the expansion of Partnership Programs
– Any state can now implement a Partnership Program
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insurancestudy.com
Major Areas of LTC Reform in the DRA
• Look-back period
• Transfer for penalty start date
• Undue hardship exception
• Treatment of annuities
• Community spouse income rules
• Home equity limits
• Treatment of investments for CCRCS
• Promissory notes and life estates
• State long-term care partnership programs
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insurancestudy.com
Own Your Future Campaigns
insurancestudy.com
• Pre-cursor in a lot of states to Partnership Programs
• What did your state do?
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The Federal Long Term Care Program
• Implemented by John Hancock and MetLife in 2001 for the Federal Government and their some 38,000 employees; they formed a company, Long Term Care Partners, LLC
• www.ltcfeds.com
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The Federal Long Term Care Program
• Main LTC Planning Metric Limits:• DBA: $50---$300• Inflation: 5% Compound, FPO• Benefit Period: 3 Yr, 5 Yr
Unlimited• Elimination Period: 30 or 90 Days• Days of Service
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Partnership Plans
• Created to reduce consumers fear of impoverishment due to Long Term Care and its associated consequences.
• Created with funding from the Robert Wood Johnson Foundation in the mid-1980’s.
• Shared partnership between individual states, and federal government.
• Originally, cases had to be written on separate Partnership Paper.
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Partnership Plans
• The concept of these Partnership LTC Policies is simple:• If you get a client to buy a Partnership
benefit pool, and the client then goes on claim and completely exhausts that benefit pool and then subsequently applies for Medicaid, then the amount of the benefit pool (that has just been exhausted) is exempt from Medicaid spend down.
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Partnership Plans
• Two Regimes:• Regime I:• California• New York• Indiana• Conneticut
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Partnership Plans
• Two Regimes:• Regime II:• DRA created the opportunity for the
other 46 states to implement their own partnership plans
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The Bottom Line:• Any meaningful reimbursement for
custodial care for people with means has been taken off the table by the Government and the implementation of these programs
• Clients need custodial care; and the majority of LTC delivered (80%--90%) is custodial.
• NOTHING BUT YOUR CASH OR A PROPERLY STRUCTURED LTC PLAN PAYS FOR CUSTODIAL CARE
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Education: The New Way:• Asking open ended questions:• “What is your understanding of LTC?”• “Have you experienced LTC
personally?”• “What is your experience with LTC?”• “When LTC is mentioned, what comes
to mind?”• “What does LTC mean to you?”• “What financial planning related steps
have you taken in the past?”
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Education: The New Way:• Asking open ended questions:• “What is your plan for paying for your
LTC?”• “What is it that you want your money
to do for you?”• “Have you put in a plan to protect
your assets so they can execute for the manner in which you have intended?”
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Education: The New Way:• Making the LTC “Picture” bigger; about
family as opposed to an individual.• Making sure the client understands the
3 steps of Proper LTC Planning.• Calling into question how the client’s
lifestyle can be affected by not properly planning for LTC.
• Properly debunking and addressing the myths of LTC and how this affects the client/prospect.
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Education: The New Way:• Properly setting expectations for the
client.• Systematic and proper delivery of the
aforementioned examples of how the Government is not going to pay for their custodial care.
• Properly demonstrating the difference between skilled and non-skilled care.
• Discussing how properly executed LTC protects income stream
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Education: The New Way:• Making this a CONSEQUENCE PLAY
RATHER THAN A RISK PLAY.• Properly demonstrating the
consequences to:• Lifestyle• Portfolio• Income Stream• Family• Friends• Relationships• Obligations/Promises
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Education: The New Way:• Asking your client “What does
retirement look like” and then demonstrating to them how LTC can get in the way of the ‘best laid’ financial and retirement plans.
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The CLTC Philosophy
“We believe that the first thing you should do is construct a plan for care—the plan is what protects the family.
LTC insurance will likely protect the plan.”
The Corporation for Long Term Care Certification (CLTCC)
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Results to be achieved today
• What kind of client/prospect do you have?
• Handling Funding responsibility related issues.
• Handling the “I’ll take care of mom..” issue.
• Handling the “Government will take care of me” issue...
• Handling the “My family will take care of me response.”
• Handling the “I’ll shoot myself” response
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Results to be achieved today
• Handling the “I’m already covered” response.
• System of follow-up for late adopters• Properly setting Underwriting
Expectations• Using your experience
• Bonus:• CLTC Grad Benefits/Overview of
Appendix 8 and Appendix 9 included on this PPT for your further assistance.
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Questions?
• It isn’t really about not knowing what to do.
• It’s about knowing where to go if you are challenged.
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Bonus Section
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CLTC Tools
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CLTC Tools to directly assist with Objection
Handling :• Appendix 8: The CLTC Planning Process
Workbook:• Appendix 9: The CLTC interview Road
map• CLTC PPT: Selected Power Phrases and
Overcoming Objections
• Located on the CLTC Graduate component of the Website.
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CLTC Tools:• Appendix 8: The CLTC Planning Process
Workbook:• The purpose of this exercise is for you
to take the CLTC 3 Step Process and selling scenarios and put them into your own words.
• Use this workbook in conjunction with the Client Interview Road Map
• Appendix 9: The CLTC interview Road map
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CLTC Tools:• Appendix 8: The CLTC Planning Process
Workbook:• The purpose of this exercise is for you
to take the CLTC 3 Step Process and selling scenarios and put them into your own words.
• Use this workbook in conjunction with the Client Interview Road Map
• Appendix 9:
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:• Use this to more effectively conduct
successful interviews based on Key points discussed during class..this tool will help you:• Questions that establish the 3 step
process.• Overcoming objections• Power Phrases• Fact Finder/Lifestyle/Financial
Commitments
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:• Existing Client: Opening Statement:“I need to talk to you about the
consequences that living a long life and needing care over a period of years will have on your spouse, children and your retirement portfolio, which was never allocated to pay for it.”
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:• Existing Client: Opening Statement:
If the response is:“What do you mean?”
“Have you or someone you know had a prior experience with Long Term Care?”
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:If the response is:I read something about the subject
or I am interested in getting some information
“What have you heard?”“What questions do you have?”
The subject is likely to be LTCI. Do not respond by talking about product.
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:• Existing Client: Opening Statement:
If the answer is yes, go to:Prior Experience, next page
If the answer is no, go to:No Prior Experience, next page
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:Prospective Client Generated by a
Lead: Opening Statement:“May I ask what motivated you to
meet with me?”Responses may range from:I’m looking for a quoteI just read something about itI am going through a ltc situation
with my familyI just want to get some information
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:If the response is:“The issue is long term care and
what the consequences of not having a plan will be to your family and retirement portfolio.”
If the response is:“I just want a quote. I am not
interested in buying right now.”
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:Client with Prior Experience Key Questions and Talking Points:• What happened?• How long did the illness last?• Where was the care provided and
who provided it?• What impact did it have on the care
provider?• What impact did it have on the
family finances?
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:“Respectfully, the issue is not long
term care insurance. It is long term care. The product may or may not be appropriate. What is appropriate is a discussion about the consequences that not having a plan for long term care will have on the emotional, physical and financial well-being of your family. I’d like to ask you a few questions in order to create a plan for care, should you need it.”
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:“Have you or someone you know
had a prior experience with long term care?”
If the answer is yes…go to prior experience…
If the answer is no..go to no prior experience
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:Client with Prior Experience Key Questions and Talking Points:• Was any income allocated to pay
for care?• What impact did reallocating
income have on the family’s ability to keep prior financial commitments?• Did it lead to an unintended
invasion of their investment portfolio?• Did anyone have to take money out
of their pockets to help?
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:Client with Prior Experience Key Questions and Talking Points:• What did it do to the financial
viability of the surviving spouse/children/family?• Did he/she understand the
consequences not having a plan would have on his/her family or friends and his/her retirement portfolio?
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:Client with No Prior Experience Key Questions and Talking Points:• If you have had a prior experience:“I have and I need to tell you what
taking care of my _____ did to the emotional, physical and financial well-being of my family. My responsibility is to make sure what happened to my family doesn’t happen to your family.”
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:Client with No Prior Experience Key Questions and Talking Points:• If you have not had a prior
experience:“Many of my clients have gone
through this situation in their families and it has been devastating to them both emotionally and financially. Let me ask first…Do you know what long term care is?”
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:Client with No Prior Experience Key Questions and Talking Points:• If you have not had a prior
experience:Explain: “It is the almost consistent
assistance a person needs because a chronic debilitating illness or cognitive impairment has severely compromised his ability to either get through the most basic of daily functions, render him unsafe because he is no longer oriented to time, place or both.”
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• Appendix 9: The CLTC Client Interview Road Map:
Client with No Prior Experience Key Questions and Talking Points:• Explain how they never considered
what the consequences of providing care would have on their family:• Tax Ramifications• When they realized that nothing
would pay for their care
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:Client with No Prior Experience Key Questions and Talking Points:• Explain how they never considered
what the consequences of providing care would have on their family:• What toll it took on those who
provided care• How it impacted the
relationships between siblings/children• How long the illness lasted
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• Appendix 9: The CLTC Client Interview Road Map:
Client with No Prior Experience Key Questions and Talking Points:• Explain how they never considered
what the consequences of providing care would have on their family:• How and where the care was
provided• The impact it had on the family’s
income stream• The impact it had on the family’s
lifestyle which includes keeping prior financial commitments
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• Appendix 9: The CLTC Client Interview Road Map:
Using the 3 Step Process to establish need and urgency:
Step 1:“Do you believe its possible you could live a long life?”
“If you do live a long life, do you think its possible you could become frail and need care?”
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:Step 2:The plan is simple. To remain
independent in the community without devastating the emotional, physical, and financial wellbeing of the client’s family.
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:Step 2:“What’s your plan should you ever
become frail or needed care?”“Where would you like your care to
be delivered?”“Who do you think would provide
your care? Have you discussed it with them?”
“What impact do you think taking care of you would have on them?”
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:Step 2:“What impact do you think providing
care to you will have on their emotional, physical and financial wellbeing?”
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:Step 3:If this is an existing client:• “I had a chance to review your
income stream which will be generated by your portfolio and added to your social security and (add it all in) Does ____ per month sound correct?”• Review the financial commitments
the client has going into retirement and what they will cost
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:Step 3:If this is an existing client:• “Here’s the problem. I can’t assure
you that should you need care, your income will be sufficient to support your lifestyle and pay for care at the same time.”• “If paying for care means cashing
in low cost based assets or qualified funds, there are serious tax considerations.”
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:Step 3:If this is a prospective client:• “Could you give me an idea of what
your lifestyle in retirement is likely to look like?”• “In addition to supporting your
lifestyle, what ongoing financial commitments will you have?”
(Child, grand children, community, church, temple, Alma-mater, etc)
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:Step 3:If this is a prospective client:• “If you ever needed care, do you
see it as a possibility that you may not have sufficient income to cover your lifestyle, financial commitments, and pay for care at the same time?”• “What impact do you think this
would have on your family?”
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:Step 3:If this is a prospective client:• “Do you see it as a possibility that if
the illness lasted long enough it could threaten the financial viability of your spouse and children who may depend on an inheritance?”• “I have some ideas on how you can
maintain your lifestyle, keep your financial commitments, and pay for care at the same time.”
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:Overcoming Objections:I don’t think I will live a long life. My
dad died at 60.• You may not live a long life. But if
you do and you need care, there could be severe consequences to your family, income stream, and retirement portfolio; • Clients have retirement portfolios
that pay out to their mid to late 90’s. This suggests they believe it is possible they could live a long life.
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:Overcoming Objections:I don’t think I will live a long life. My
dad died at 60.• “Tell me in your own words what
you think taking care of you over a period of years will do to the emotional, physical and financial well being of your family?”
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:Overcoming Objections:I may not need care over a long
period of time.• You may not. But if you do, there
could be severe consequences to your family, income stream and retirement portfolio;• Tell me in your own words what you
think taking care of you over a period of years will do to the emotional, physical and financial wellbeing of your family?
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:Overcoming Objections:I have enough money to pay for my
care• Rather than look at assets, may I
suggest that you look at the income generated from your portfolio. It may seem that $___ enough, but it only generates $___ per year of income, all of which is currently committed to your lifestyle.
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:Overcoming Objections:I have enough money to pay for my
care• Paying for care will likely mean
reallocating income which at a minimum, will adversely affect your lifestyle and ongoing financial commitments.• Retirement income usually matches
retirement expenses. Will there be sufficient income to pay for your expenses and care at the same time?
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:Overcoming Objections:I have enough money to pay for my
care• If the illness lasts long enough, it
can impact the financial viability of a surviving spouse and/or children who may depend on an inheritance.
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:Overcoming Objections:I’m wealthy. My financial
planner/CPA/Lawyer told me that I can easily pay for the cost of my care.• Many people believe that having 2
or 3 million dollars in assets is sufficient to pay for care, should they need it. May I suggest that you consider the income these assets will generate? This income is likely already committed to support your lifestyle.
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:Overcoming Objections:I’m wealthy. My financial
planner/CPA/Lawyer told me that I can easily pay for the cost of my care.• Very wealthy people are no
different than those with modest net worth, when it comes to purchasing insurance. They assess the consequences, not the risk. Most of them believe they will never need care so the risk is negligible.
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:Overcoming Objections:I’m a veteran. The V.A. will pay for
my care.• The Federal Long Term Care
Insurance Program was created to address the reality that most veterans will not qualify for these benefits.
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:Overcoming Objections:I’m wealthy. My financial
planner/CPA/Lawyer told me that I can easily pay for the cost of my care.• However, they understand, often
from a prior experience that the consequences to their family’s emotional, physical and financial wellbeing could be severe. They also understand the cost of care is significant.
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:Overcoming Objections:I’m a veteran. The V.A. will pay for
my care.• The V.A. provides health care for
veterans. Custodial care is provided primarily for those with limited income and assets under the Aid and Attendance Special Pension benefit.
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:Overcoming Objections:Medicare paid for my mother’s care.
• Medicare is health insurance. It doesn’t pay for custodial care; only skilled or rehabilitative services.• Review the Balanced Budget Act of
1997.
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:Overcoming Objections:My attorney told me that Medicaid
would pay for my care in a nursing home.• Medicaid will pay for custodial care
in a skilled nursing home, but it pays little or nothing for home care, adult day care and assisted living. Medicaid doesn’t address the years that the client is at home, needing care.
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:Overcoming Objections:My attorney told me that Medicaid
would pay for my care in a nursing home.• Medicaid is not free. If you have
qualified funds or low cost based assets, there are serious tax considerations.• Once on Medicaid, a community
spouse may lose the majority of their income.
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CLTC Tools:• Appendix 9: The CLTC Client Interview
Road Map:Myth: LTCI protects the individual.
Reality: LTCI protects the individual’s family.
Myth: LTCI Protects Assets.Reality: LTCI protects income
stream.
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Questions?
• It isn’t really about not knowing what to do.
• It’s about knowing where to go if you are challenged.