group long term care insurance. long term care: an introduction long term care insurance provides...
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Group Long Term Care Insurance
Long Term Care: an Introduction
Long Term Care Insurance provides financial protection to you and your family if you are unable to perform 2 of 6 Activities of Daily Living unassisted.
What are Activities of Daily Living (ADL)?
Bathing
Dressing
Toileting
Continence
Transferring
Eating
OR, If you are Cognitively Impaired
Long Term Care: the Cost of Care
Region (Michigan – except Detroit)
Private Nursing Home Care Cost
Semi-Private Nursing Care Cost
Assisted Living Facility Care Cost
Home Care Service Cost - 4 hours /day (hourly rate)
Minimum Daily Rate
$147.00 $147.00 $83.30 $64.00 ($16.00)
Maximum Daily Rate
$354.00 $256.00 $127.50 $78.00($19.50)
Average Daily Rate
$217.59 $197.20 $99.65 $69.52($17.38)
Estimated Average Yearly Cost
$79,000 $72,000 $36,500 $25,400 (based on 4 hours of care per day)
Long Term Care: who Pays for it?
1. Medicare pays for up to 100 days after a 3 day hospital stay
2. Medicaid pays if you have no assets
• this means you have to “spend down” any accumulated
wealth before receiving coverage.
• not all facilities accept Medicaid patients
3. You can pay for these costs out of pocket
4. A Long Term Care Insurance plan can pay for these costs.
Long Term Care Insurance: A Summary of Your Options
1. Group Long Term Care – offered by UNUM
• All employees are enrolled in a base plan, with the
opportunity to “buy-up.”
2. Individual Long Term Care
• You are still covered by the UNUM base plan
• Individual options to supplement this coverage.
Long Term Care: UNUM
As mentioned, all employees are covered by a base plan, provided by UNUM:
The Base Plan
$1,500 per month: lump sum payment made to YOU each month
2 years duration
50% Professional Home & Community Care benefit
90 day elimination period
Portable Coverage
Waiver of Premium
Bed Reservation & Respite Care Benefits
Long Term Care: UNUM
Buy Up Options
Plan 1 Plan 2 Plan 3 Plan 4
Choose your Monthly Benefit
$1,500 - $9,000*
$1,500 - $9,000*
$1,500 - $9,000*
$1,500 - $9,000*
Choose your Benefit Duration
2 year, 6 year, or Lifetime* benefit duration
2 year, 6 year, or Lifetime* benefit duration
2 year, 6 year, or Lifetime* benefit duration
2 year, 6 year, or Lifetime* benefit duration
Additional Benefits
5% Compound Inflation Rider
10 Year Accelerated Payment Rider
5% Compound Inflation + 10 Year Accelerated Payment Rider
Long Term Care: UNUM
Buy Up Options
* For new hires, the following options are available on a guaranteed issue basis:
• Monthly Benefits up to $6,000
• Benefit Durations up to 6 years
• After 31 days, all options require Evidence of
Insurability
• Benefits of $7,000 - $9,000 and Lifetime Duration
options always require Evidence of Insurability
Long Term Care: UNUM
Coverage Details:
• The monthly benefit is payable to you – not the facility or care provider.
• You do not have to provide receipts or evidence of actual expenses.
• Professional Home Care = 1 hour per day of Licensed Care
and is payable as a 50% benefit
Long Term Care: UNUM
Cost of Coverage:
• Based on your age when coverage is purchased• Rates may increase, but the rate will always be based on your original purchase age• Rates are offset by the employer base plan
http://unuminfo.com/apcpc/calculator.aspx
Long Term Care: UNUM
Cost of Coverage:
Long Term Care: UNUM
The advantage to purchasing Long Term Care early:
Example: Plan 2; 6 year benefit duration; $3,000 monthly benefit.
Purchased at age 40 and pay premium until age 85(45 years)
Total Premium Paid: $47,300
Purchased at age 55 and pay premium until age 85 (30 years)
Total Premium Paid: $55,185
Long Term Care: UNUM
More information and enrollment:
http://unuminfo.com/apcpc/index.aspx
Long Term Care: Additional Options
Customized Plans to Supplement the UNUM base plan coverage.
• Alternative to the UNUM Buy-Up
• Increased flexibility includes benefit options such as:
• Shared Care riders (if married)
• Other inflation options (3%, 4%)
• Other benefit amounts and periods
• Preferred health discounts
• Gender Pricing
• International coverage
• Refund of Premium riders
Note: Accelerated Premium riders are not available
Long Term Care: Additional Options
Two Approved Companies: Genworth Life or John Hancock
• AM Best Rating: A+
• LTCi Sales: #1 and #2
• Access to a greater selection of benefit options
• Opportunity to buy more coverage
• Premiums may be less than the UNUM group plan
Long Term Care: Additional Options
Comprehensive Planning
• Everyone needs a Long Term Care plan
• Long Term Care insurance is a way to fund your plan
• Part of your financial/retirement planning
• Personalized, 1:1 time with LTCi Specialist
Questions?
Mills Benefit Group: UNUM Group Plan
Lisa Murphy, CEBS, LIC
lmurphy@millsbg.com
616-459-1069
Ron Courser & Associates: Individual Long Term Plan Options
Nancy Courser, CLTC, CSFP®
ncourser@roncourser.com
616-301-2581
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