Winning in the Second Half of Life 157060LTC 08/20/13.

Winning in the Second Half of Life157060LTC 08/20/13

“Setting a goal is not the main thing. It is

deciding how you will go about achieving it

and staying with that plan.”– TOM LANDRY

Dallas Cowboys coach, 1960-1988

“Planning is bringing the future into the present so that you can do something about it now.”

– ALAN LAKEIN

What does it take to win in the second half of your life?

5Winning in the Second Half of Life

When you think about your financial security during retirement, which of the following is most important to you?

Your priorities

Having enough income to sustain my lifestyle in the future

Handling unexpected medical expenses

Protecting my family against the financial impact of a long term care event


A common challenge

• Do you know anyone who needed long term care?

• Do you believe it could happen to you?

Extended care/long term care

Winning in the Second Half of Life


People are living longerAverage life expectancies continue to increase

Roman Empire Middle Ages 1900 1950 2013 (U.S.)

2233

4768 79

Source: Geobase: The World Life Expectancy (2013) – top 100+. Accessed 08/20/13http://www.geoba.se/population.php?pc=world&type=015&year=2013&st=rank&asde=&page=1


Who will take care of me and where do I want to receive care?

How will the care be paid for?

What impact will this have on my family and our finances?

The reality of living longer

Living a long life is more of a reality today.

Living longer is not always synonymous with living better.

Living longer may mean we need long term care.

Preparing for a long life is a necessity.

The longer we live, the more likely it is that we may need someone to help take care of us.

Planning for long term care


What is long term care?

• Because you are not able to do some of the basic Activities of Daily Living (ADL).

• And/or because of Accidents Chronic illness Aging Strokes A severe cognitive impairment,

such as dementia, Alzheimer’s disease or brain injury

Other chronic conditions

Defined as the assistance or supervision you may need

Long term care can be received at home, in the community or in a nursing home or assisted living facility.

Assisted living facilities (referred to as Residential Care Facilities in California)


YEARS

Average life expectancy after Alzheimer’s disease diagnosis after age 65.3

4-8

1 Medicare & You, National Medicare Handbook, Centers for Medicare and Medicaid Services, Revised November 20122 Claims data for Genworth Life Insurance Company and affiliates – December 1974 - December 31, 20123 Source: 2012 Alzheimer’s Disease Facts and Figures, Alzheimer's Association, March 2012

11

Long term care is a reality

OF PEOPLE

70%People over 65 will need long term care services.1

3.9YEARS

Average length of long term care claim lasting longer than one year.2

AT LEAST


In-Home Care Assisted Living Nursing Home$0

$50,000

$100,000

$150,000

$200,000

$250,000

$44,479 $41,400$83,950

$112,396 $104,615

$212,138

This year In 20 years

Assisted living facilities (referred to as Residential Care Facilities in California)Source: Genworth 2013 Cost of Care Survey, conducted by CareScout, ® April 2013. Based on national median costs.*Estimates how much care might cost based on 5% annual growth rate.

And it’s getting more expensiveAnnual median cost of care in the United States for this year and in 20 years.*

(44 hours/week, licensed home health aid)

(private room)

z


Cost of Care Survey

Source: Genworth 2013 Cost of Care Survey, conducted by CareScout, ® April 2013. Based on national median costs.

http://www.genworth.com/content/genworth/genworth/coc_landing.html?WT.mc_id=mm_ltc_coc11_pro_v1



Home CareHow much it costs depends on your location


Assisted living facilities (referred to as Residential Care Facilities in California)Source: Genworth 2013 Cost of Care Survey, conducted by CareScout, ® April 2013. Based on national median costs.

Assisted LivingHow much it costs depends on your location

Private Room



Nursing HomeHow much it costs depends on your location

Private Room


A challenge many of us shareAt least 70% of people over 65 will need long term care services at some point.1

Many believe it won’t happen to them and say if it does:

1 Medicare & You, National Medicare Handbook, Centers for Medicare and Medicaid Services, Revised November 2012


Managed Money

Money Market

BondsProperty

Stocks

Life In-surance & Annu-

ities

Mutual Funds

LTC?

How would you pay for long term care?



*Medicaid is referred to as Medi-Cal in California

Long term care funding options

Private/Family Support

Public Programs Self Funding

Family members or friends may provide care

Medicare and Medicaid* programs

Set aside money from a retirement strategy


*An optional rider that can be added to some life insurance policies.

Long term care funding options

Traditional Long Term Care Insurance

Accelerated Benefit Rider for Long Term Care Services*

Linked Benefits Solution

Specifically designed to pay for long term care

Can provide tax-free reimbursement for covered long term care services

Combine benefits of life insurance and long term care insurance


Planning now can help you win in the second half

1

2

What’s your written strategy?

How will the costs of extended care impact your portfolio and your family?



Have the conversation


Begin your written plan today

• Do it for yourself…

• And do it for your family

• Help protect your retirement portfolio and assets

• Help protect your family’s goals

Genworth, its affiliates and representatives, do not provide tax advice. You should consult a legal and/or tax professional for information relating to your particular situation.

Insurance and annuity products

• Are not deposits.• May decrease in value.

• Are not insured by the FDIC or any other federal government agency.• Are not guaranteed by a bank or its affiliates.

©2013 Genworth Financial, Inc. All rights reserved.

Insurance product is based on the claims-paying ability of the issuing insurance company.

Winning in the Second Half of Life 157060LTC 08/20/13.

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