Title: LongTerm Care Insurance Seminar and Sales Presentation
1Long-Term CareInsurance Seminar and Sales
Presentation
John Hancock Life Insurance Company
- Presented by ltLicensed Agentgt, DesignationgtltTitle
gtltCompanygt
Long-Term Care Insurance is underwritten by John
Hancock Life Insurance Company, Boston,
Massachusetts, 02117 ltand is offered by name of
bank agencygt
LTC-1750 10/02
2Help Ensure TOMORROWSFinancial Independence
TODAY
- Long-Term Care Insurance
- Insurance for the unexpected
- Agenda
- What is Long-Term Care?
- 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
- Next Steps
3 4What is Long-Term Care?
- Activities of Daily Living
- Cognitive Impairment
-
5What is Long-Term Care?
Activities of Daily Living
- Bathing
- Dressing
- Eating
- Toileting
- Continence
- Transferring
6What Is Long-Term Care?
- Cognitive Impairment
- A condition that leads you to require substantial
supervision to protect yourself or others from
threats to health and safety.
7Where Can I Get Long-Term Care Services?
- Your Home
- Assisted-Living Facility¹
- Adult Day Care Facility
- Nursing Home²
80 of seniors requiring assistance with
activities of daily living receive care at home
or in community bases settings. ³
1. Referred to as Residential Care Facility in
California. 2. Referred to as Nursing Facility in
California. 3. General Accounting Office,
Testimony Before Committee on Finance, U.S.
Senate, 2001
8What are 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 the Long-Term Care affect the family?
9What Are the YourLong-Term Care Experiences?
- 60 of people who reach age 65 may need Long-Term
Care at some point in their lives.
60
Source Conning and Company, Long-Term Care
Insurance, Baby Boom or Bust, 1999, Page 13.
10What Are the YourLong-Term Care Experiences?
- 40 of those receiving Long-Term Care services
are adults between the ages of 18 and 64.
40
Source Conning and Company, Long-Term Care
Insurance, Baby Boom or Bust, 1999, Page 13.
11What Are YourLong-Term Care Experiences?
- Among 22.4 million families in the United States,
nearly one forth of all households provide care
to elderly relatives.
Nearly 25
Source Study by Brandeis Universitys National
Center of Women and Aging, December 1999.
12What Are YourLong-Term Care Experiences?
- By 2030, when the last of the Baby Boomers are
retiring, the number of people age 65 and older
will have doubled to 70 million.
70 Million
Source American Council of Life Insurance, 2000.
13What Are YourLong-Term Care Experiences?
- The national average cost for a nursing home stay
per year is 55,000 and may run as high as
93,000 in some states.
1
2
55,000
Costs vary by the type of care received and by
geography.
Source (1) United States General Accounting
Office, 2001 (2) The New York State Partnership
for Long-Term Care, 1999
14What Are YourLong-Term Care Experiences?
- Nursing Home costs have been going up about 5 a
year. If that continues for another 30 years,
costs for semi-private rooms in 2032 are expected
to be 190,600.
190,600
Costs vary by the type of care received and by
geography.
Source Planning Ahead for Nursing Home Care,
Long-Term Care Planning A Dollar and Sense
Guide, United Seniors Health Council, January 1,
2001.
15What Are YourLong-Term Care Experiences?
- The national annual average cost for home health
care is well over 20,000 (thats 18/hour, five
days per week, five hours per day for a home
health aide. This figure is expected to climb to
68,000 by 2030.
18 per Hour
Costs vary by the type of care received and by
geography.
Source Planning Ahead for Nursing Home Care,
Long-Term Care Planning A Dollar and Sense
Guide, United Seniors Health Council, January 1,
2001.
16Long-Term Care
17How Would You Pay for Long-Term Care?
- Private/company medical insurance?
- Medicare
- Medigap Insurance
- Medicaid
- Personal Assets
- Family
18How Would You Pay for Long-Term Care?
- Private/company health insurance
- Skilled acute care only
- Not designed to pay for long-term custodial care
19How Would You Pay for Long-Term Care?
- Medicare¹
- 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
1. 2001 Guide to health Insurance for People with
Medicare, The Centers for Medicare Medicaid
Services and U.S. Department of Health and Human
Services.
20How Would You Pay for Long-Term Care?
- Medicare¹
- Home Health Care
- Part-time skilled nursing care
- Custodial homemaker services provided incidental
to home health care
1. 2001 Guide to health Insurance for People with
Medicare, The Centers for Medicare Medicaid
Services and U.S. Department of Health and Human
Services.
21How Would You Pay for Long-Term Care?
- Medigap
- Medicare approved expenses only
- Medicaid¹
- Must spend down assets to State required level
1. Eligibility requirements apply and vary by
state. Medicaid is known as Medi-Cal in
California.
22How Would You Pay for Long-Term Care?
- Family
- Long-Term Care is a family issue
- An estimated 60 of the disabled elderly living
in communities rely exclusively on their families
and other unpaid sources for care¹ - Seven of Ten unpaid caregivers are women¹
- Could your family care for you?
- Would you want them to?
1. United States General Accounting Office,
Testimony Before Committee on Finance, U.S.
Senate, 2001.
23How Would You Pay for Long-Term Care?
- Personal Assets
- One long-term illness may jeopardize your
accumulated retirement savings
24Who Pays the Long-Term Care Bill?
Source Department of Health and Human Services,
HCA, Office of the Actuary, National Health
Statistics Group, Personal Health Care
Expenditures, 2001.
25Private Long-Term Care Insurance Can Help
- Stay at home when you need care
- Maintain your independence
- Protect your income and assets
- Avoid dependence on family members
- Access high quality care
26Is There Any Risk YouHavent Already Insured?
- Have you insured your home?
- Have you insured your car?
- Do you have medical insurance?
- Do you have a plan to pay long-term care
expenses? - Why not insure one of your greatest risks with
long-term care insurance?
27Help Protect Your Assets
Assets
LTC Policy helps to protect your investments
LTCI Policy
Most income pays living expenses or is reinvested
An amount buys LTC Insurance
Income from Investments
28Why John HancockLong-Term Care Insurance?
- Benefit Flexibility
- Choice of Coverage
- Wide-ranging Home Health Care Benefits
- Pool of Money
- Inflation Protection
- Waiting Period
- Coverage for Alzheimers Disease
Diagnosed after policy effective date.
29Why John HancockLong-Term Care Insurance?
- Guaranteed Renewable¹
- Waiver of Premium Benefit
- Responsive and Experienced Claims Staff
- Upgrade Privileges
- SharedCare²
- FamilyCare Benefit³
- Advantage List
1. The insurer reserves a limited right to
increase premiums by class 2. Not available with
10-year or Lifetime Benefit Period, or to ages
80-84. In AZ and NH, available only with the
4-5-or 6-year benefit period. In PA, available
only with the 3-4-5- or 6-year Benefit Period.
3. Not available in LA, MD, NY, PA, and TX.
Additional Premium will be required
30Backed by the Strengthof John Hancock
- More than 140 years of service.
- More than 300,000 long-term care insurance
policyholders. - Among the highest rated insurance companies for
financial strength and stability as judged by the
major rating agencies.
Financial Strength John Hancock is one of the
highest-rated insurance companies in the
country Rating Agency Rating Description A.M.
Best A Superior Fitch AA Very
Strong Moodys Aa2 Excellent Standard
Poors AA Very Strong Ratings are current as of
October 14, 2002
31How do I get coverage?
- Appointment
- Make an appointment with your John Hancock
Insurance Representative to assess your personal
needs. - Application
- Complete an application bases on that plan that
is appropriate for you. - Underwriting
- John Hancock evaluates the application and health
history to determine eligibility.
32How do I get coverage?
- Delivery
- Upon approval, the policy is delivered.
- Coverage
- By paying premiums on time, policy and coverage
will stay in force.
33Why start planning today?
- People often put off the decision
- Too often, people wait until they critically need
care. By then, they may not qualify for coverage.
34Limitations
- Benefits will not be paid for changes during the
Elimination Period, except for Care Advisory
Services, the Stay at Home Benefit, and Respite
Care. - Benefits will not be paid in excess of the policy
limit, except for Care Advisory Services and the
Stay at Home Benefit.
35Exceptions
- This policy does not cover care, treatment or
charges - for intentionally self-inflicted injury
- required as a result of alcoholism or drug
addition (unless the drug addition was a result
of the administration of drugs as part of
treatment by physician) - due to war (declared or undeclared) or any act of
war, or service in any of the armed forces or
auxiliary units - due to participation in a felony, riot, or
insurrection - normally not made in the absence of insurance
36Exceptions
- This policy does not cover care, treatment or
charges - provided by a member of your immediate family,
unless - the family member is one of the following
professionals a duly licensed registered nurse,
licensed vocational nurse, licensed practical
nurse, physical therapist, occupational
therapist, speech therapist, respiratory
therapist, licensed social worker, or register
dietitian - the family member is a regular employee of an
organization (e.g. nursing home, assisted living
facility, adult day care center, or home health
care agency) which is providing the services
37Exceptions
- This policy does not cover care, treatment or
charges - provided by a member of your immediate family,
unless - the organization receives the payment for the
services and - their family member receives not compensation
other than the normal compensation for employees
in his or her job category - provided outside the 50 United States and the
District of Columbia, except as described in the
International Coverage section of the policy - This policy does not cover items or services
furnished at your request for beautification
convenience, or entertainment. In Massachusetts,
the policy does not cover alcoholism or drug
detoxification.
38Thank you!
The Long-Term Care insurance policy describes
coverage's provided under the policy, exclusions,
limitations, any reductions in benefits, what you
must do to keep your policy in force, and what
would cause your policy to be discontinued.
Please contact John Hancock or your Insurance
Representative for information, costs, and
complete details on coverage.
Policy Form LTC-02 Policy Form BSC-02 Rider Form
LTC-FCB