LongTerm Care Insurance Seminar and Sales Presentation

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Long-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
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Help 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

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• What Is Long-Term Care?

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What is Long-Term Care?

• Activities of Daily Living
• Cognitive Impairment

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What is Long-Term Care?
Activities of Daily Living

• Bathing
• Dressing
• Eating
• Toileting
• Continence
• Transferring

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What 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.

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Where 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
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What 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?

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What Are the YourLong-Term Care Experiences?

• 60 of people who reach age 65 may need Long-Term
  Care at some point in their lives.

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Source Conning and Company, Long-Term Care
Insurance, Baby Boom or Bust, 1999, Page 13.
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What Are the YourLong-Term Care Experiences?

• 40 of those receiving Long-Term Care services
  are adults between the ages of 18 and 64.

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Source Conning and Company, Long-Term Care
Insurance, Baby Boom or Bust, 1999, Page 13.
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What 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.
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What 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.
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What 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.

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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
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What 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.
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What 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.
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Long-Term Care

• Could it happen to you?

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How Would You Pay for Long-Term Care?

• Private/company medical insurance?
• Medicare
• Medigap Insurance
• Medicaid
• Personal Assets
• Family

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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

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How 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.
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How 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.
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How 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.
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How 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.
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How Would You Pay for Long-Term Care?

• Personal Assets
• One long-term illness may jeopardize your
  accumulated retirement savings

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Who 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.
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Private 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

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Is 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?

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Help 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
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Why 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.
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Why 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
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Backed 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
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How 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.

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How do I get coverage?

• Delivery
• Upon approval, the policy is delivered.
• Coverage
• By paying premiums on time, policy and coverage
  will stay in force.

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Why 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.

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Limitations

• 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.

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Exceptions

• 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

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Exceptions

• 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

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Exceptions

• 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.

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Thank 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