Long Term Care is a Family Affair

Presented by:Gary L. Roden, CLTCLong term care insurance underwritten by General Electric Capital Assurance Company

37678 09/26/05Exp. 12/31/05

A Presentation on Long Term Care Planning

© 2005 Genworth Financial, Inc. All rights reserved.

We are better off today than we’ve ever been.

1National Center for Health Statistics. Health, United States, 2004. With Chartbook on Trends in the Health of Americans.

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

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.

We’re fortunate that we may live a long life.

Living a long life is more of a reality today.

Planning for that long life is a necessity.

Long term care is not only about you.

It’s about you and your family.

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 LadyRosalynn Carter

Excerpt from “Helping Yourself Help Others: A Book for Caregivers” with Susan K. Golant

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.

Where is long term care delivered?

• Where you need it.

• Not just in nursing homes.

• Often in your own home.

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

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.

• 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

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.

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.

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.

• 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.

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.

$01st Year 2nd 3rd 4th 5th

Potential impact of long term care expenses:$500,000 could be depleted in 5 to 6 years.

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.

$500,000

$412,750

$315,525

$207,546

$87,980

($44,062)

$500,000

$250,000

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.

Potential impact of premium on savings:

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.

• Pay Long Term Care insurance premium out of savings• Long Term Care insurance helps protect the savings

$656,444

$500,000

$600,000

$400,0001st Year 2nd 3rd 4th 5th 6th 7th

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.

What to look for in a Long Term Care insurance policy.

Basic Policy Features

• Applied as a daily or monthly amountBenefit Amount

• How long is the “deductible?”• How many choices?

Elimination Period

• Limited or unlimitedLifetime Benefit Amount

Policy Exclusions

Home Care

• Be sure to ask about them.All policies have

Plan today and help secure your future!• If you don’t do it for yourself, do it for your family.

• Help protect your financial assets.

• Help protect your family’s goals.

Questions?

Thank you for attending !