LONG TERM CARE

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LONG TERM CARE

• PRESENTED BY
• Hodge, Hart Schleifer, Inc.

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Why Long Term Care ?

• 25 of all Americans can expect to need nursing
  home care in their lifetime.
• If a couple reaches age 65 the chances are 70
  that one will require care in a nursing home.
• Nursing home care can cost between 25,000 and
  50,000 per year. Home health care costs about
  15,000 annually.
• The number of people over age 65 has grown by 56
  in the last two decades.

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Why Long Term Care ?

• Approximately 40 of Americans receiving long
  term care in either an institution or a home or
  community-based setting are between the ages of
  18 and 64.
• Medical plans and Medicare are designed to
  primarily cover skilled, not custodial care.
• Disability plans are designed to replace income,
  not cover extraordinary long term care expenses.

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Whos Eligible?

• Employees
• Spouse
• Parents
• In-Laws, and
• Retirees Spouses

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Policy Provisions
L-T-C
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Long Term Care Policy

• Nursing Home Care - Daily benefit from 60 to
  200
• Home Health Care - Equal to 50 of Daily Nursing
  Home Benefit
• Home Care by a Relative is also available
• Waiver of Premium, and
• Flexible Lifetime Maximums Available

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Additional Plan Options

• Automatic Benefit Increase
• 5 Simple/year for lifetime
• 5 Compounded/year for lifetime
• Nonforfeiture Benefit
• Refund of Premium at Death
• Refund of Premium at Death or at request of
  Insured, and
• Benefit Account - Paid up at Lapse

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New Tax AdvantagesKassebaum-Kennedy Bill

• Long term care insurance premiums are deductible
  as a medical expense for those who
  itemize.
• Long term care insurance benefits received by a
  claimant are tax-free.

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New Tax AdvantagesKassebaum-Kennedy Bill

• Employers who pay long term care premiums on
  behalf of an employee are entitled to deduct
  those premiums as a business expense.
• Long term care premiums paid by an employer on
  behalf of an employee need not be treated as
  income to that employee.

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Carrier Selection
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Carrier Selection

• We make it easy!

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Representing thefollowing Carriers

• CNA
• John Hancock
• TransAmerica
• Travelers, and
• UNUM

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Communication Strategies
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Promotion

• Announcement in Newsletter
• Payroll Stuffers
• Brochures
• Video, and
• Toll-Free number to ask questions

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Promotion

• Strategy and Timing to be Determined

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Benefits to Employer

• Provide Low Cost Benefit to Employees
• Allow employees to buy-up on a Guaranteed
  Issue basis, and
• Help employees focus on financial security issues

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The Solution!
A LONG TERM CARE PROGRAM
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An Alternative Solution?

• A Voluntary Universal Life Insurance
  Plan
• With Living Benefits

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UL-Accelerated Death Benefit For Long-term Care.

• Up to 2 of the death benefit per month to pay
  for Long-term Care or Home Heath Care
  treatment.
• The balance if any will be paid to your
  beneficiary.

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Other Living Benefits

• Critical Care Benefit-up to 25 of the Death
  Benefit
• Monthly Income-1 of Death Benefit, and
• Terminal Illness-50 of Death Benefit up to
  100,000

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• The End