Long Term Care Insurance Seminar and Sales Presentation

1
Long Term Care Insurance Seminar and Sales
Presentation

• Presented by Licensed Agent Name, Designation
• Title License in CA, MN and FL
• Company Name

Long term care insurance is underwritten by John
Hancock Life Insurance Company, Boston, MA
02117 LTC-3750 9/05
2
Todays Agenda

• Agenda
• What is Long Term Care (LTC)?
• What are chances of needing LTC?
• What are the costs associated with LTC?
• What are the funding sources to pay for LTC?
• Is LTC insurance right for me?
• Why John Hancock LTC Insurance?

3
What is Long Term Care (LTC)?

• Long term care is the type of assistance you
  would need if you were unable to handle some of
  the basic activities of daily living or if you
  require substantial supervision due to a
  cognitive impairment.

4
What are Activities of Daily Living (ADLs)?

• Activities of Daily Living include
• Eating
• Bathing
• Dressing
• Toileting
• Continence
• Transferring (from bed to chair)

5
What is a Cognitive Impairment?

• A condition that leads you to require substantial
  supervision to protect yourself or others from
  dangers to health and safety.
• Example Supervision due to Alzheimers
  disease, brain injury, or stroke.

6
Where can I receive LTC Services?

• Your Home
• Adult Day Care Center
• Assisted Living Facility (ALF)
• Nursing Home
• Hospice Facility

Residential Care Facility in California
7
What Does LTC Cost?

• On average, one year in a nursing home or 24-hour
  home care can cost more than 66,000 today1. In
  states such as New York, the costs can run as
  high as 115,3402.
• With costs increasing at about 43 per year. By
  2030 the cost of a nursing home is expected to be
  more than 190,0004.

1. Congressional Budget Office, Financing
Long-Term Care for the Elderly April 2004. 2.
New York State Partnership for Long Term Care,
2003. 3. Based on a rate of inflation of 4.25 of
nursing home costs according to the Bureau of
Labor Statistics Consumer Price Index See Fitch,
IBCA, Duff Phelps, Long-Term Care An Industry
in Transition January 18,2002. 4. American
Council of Life Insurers, Long-Term Care
Insurance Protect Your Future 2001
8
Your Long Term Care Experiences

• Who?
• Where?
• How was it paid for?
• Who provided the care?
• How long did the person need care?
• Was the care expected or unexpected?
• How did long term care affect the family?

9
Who Pays for LTC Services?

• Private/Company Health Insurance/Other
• Personal Assets/Family
• Medicare
• Medicaid
• Long term care insurance

Medi-Cal in California.
10
Who Pays the LTC Bill?
Georgetown University Long-Term Care Financing
Project, "Who Pays for Long-Term Care?" May 2004
11
How Would You Pay for Long Term Care?

• Private/company health insurance
• Skilled acute care only
• Not designed to pay for long term custodial care

12
How Would You Pay for Long Term Care?

• Personal Assets
• One long term illness may jeopardize your
  accumulated retirement savings/nest egg

13
How Would You Pay for Long Term Care?

• Long Term Care is a family issue
• If you had a need for LTC services, how would it
  effect your family and/or spouse?
• 78 of adults receiving long term care at home
  rely exclusively on assistance from family and
  friends5
• 71 of caregivers are women6
• Could your family care for you?
• Would you want them to?

5. Georgetown University Long-Term Care Financing
Project, Long-Term Care Support for Family
Caregivers March 2004. 6. Wiser Special Report,
The Effects of Caregiving 2004.
14
How Would You Pay for Long Term Care?

• Medicaid
• Must spend down assets to state required
  level

Known as Medi-Cal in California. Eligibility
requirements apply and vary by state.
15
How Would You Pay for Long Term Care?

• Medicare7
• Home Health Care
• Part-time skilled nursing care
• Custodial homemaker services provided incidental
  to home health care

7. 2005 Guide to Health Insurance for People with
Medicare. The Centers for Medicare and Medicaid
Services and U.S. Department of Health and Human
Services.
16
How Would You Pay for Long Term Care?

• Medicare8
• Skilled Care/Skilled Nursing Facility
• Three day prior hospital stay required
• Enter facility within 30 days
• Full costs covered for 20 days
• Minimal costs covered for next 80 days
• No coverage after 100 days in that benefit period
• Medicare Supplement
• Medicare approved expenses only

8. The Centers for Medicare Medicaid Services
and U.S. Department of Health and Human
Services. The 2005 Guide to Health Insurance for
People with Medicare.
17
Is LTC Insurance Right for me?

• Protect your retirement savings
• Spend quality time with your family
• Financial support
• Care planning expertise, advice and resources
  when you need care
• Preservation of independence
• Gives you choices

18
LTC Insurance Important at all ages

• As serious in accident or debilitating illness
  can happen at age. That is why it is wise to
  plan for long term care when you are young - and
  healthy.
• 37 of those needing LTC in 2000 are under the
  age of 65.9
• The probability of losses in physical functioning
  increases with age dramatically so for the
  population aged 65 and older.10

9. Kaiser Family Foundation, Medicaid and Long
Term Care May 2004 10. Congressional Budget
Office, Financing Long-Term Care for the
Elderly, April 2004.
19
LTC Insurance Its Affordable

• The cost of waiting can impact the amount of your
  premium. Therefore, the younger and healthier you
  are when you apply the lower your premiums can
  be.

Based on the average annual premium in 2002, with
4 years of coverage, 150 Daily Benefit and a
90-day Elimination Period. America's Health
Insurance Plans, "Long-Term Care Insurance in
2002" June 2004.
20
More than Financial SupportCare planning
expertise, advice and resources

• John Hancock is committed to providing you with
  the help and
• support you and your family will need when you
  need care, whether
• it is at home or in a facility. This includes
• Help designing a plan of care
• Assistance with the claims process
• Advice regarding caregiving resources in your
  community
• Access to provider information, reports and
  discounts
• Resources to help you and your family manage your
  LTC decisions

21
John Hancock A Leader in LTC insurance

• When you choose John Hancock, you are placing
  your
• trust in a company with
• More than 140 years of experience providing a
  range of insurance products to meet every need
• A company with that services more than 905,000
  long term care insurance policyholders. John
  Hancock has paid more than 1 billion in claims
  as of August 31, 2005

Based on internal claims data as of 10/31/05.
22
John Hancock Strength. Stability. Experience.

• We are known for our strong financial strength
  andstability and have the ratings to prove it

Standard Poors AA Moodys
Aa A.M. Best A Fitch
AA
Ratings as of 9/29/05 Financial ratings refer
only to the overall financial status of the
company, and is not a recommendation of the
specific policy provisions, rates, or practices
of the insurance company."
23
Thank You

• This is a general description of coverage and is
  not an insurance contract. Refer to the Outline
  of Coverage provided by our agent for an
  explanation of features and options. Only the
  individual long-term care insurance policy
  contains governing contractual provisions. You
  may request a sample policy to review such
  provisions.The Long-Term Care Insurance policy
  describes coverages under the policy, exclusions
  and limitations, what you must do to keep your
  policy in force, and what would cause your policy
  to be discontinued. Please contact the licensed
  agent or John Hancock for more information, costs
  and complete details on coverage.

Policy Series LTC-03, BSC-03, LTC-02,
BSC-02 In Idaho LTC-03 ID, BSC-03 ID In Indiana
LTC-03 IN, In North Carolina LTC-03 NC, BSC-03
NC In Oklahoma LTC-03 10/03, BSC-03 10/03 In
Puerto Rico BSC-05 PR In California LTC-02CA,
LTC-02CAP