Download - Long Term Care Insurance (LTC)
Long Term Care Insurance (LTC)
Why Would I Ever Need LTC?
What is Long Term Care Insurance (LTC)?
Long term care insurance pays for services required if a person is unable to care for himself/herself due to injury, chronic illness, natural aging process or disability.
It is a “RISK” insurance.
Just like car insurance – you buy it and hope you never need to make a claim!
What is Long Term Care Insurance (LTC)?Coverage includes: Skilled services, Intermediate
Services, and Custodial ServicesProvided through: Home Health Care, Adult Day Care,
and Nursing Home Care
Purpose of LTC You may need LTC if you can no longer perform “activities of
daily living”(ADLs) by yourself. Eating Dressing Bathing Continence Toileting Transferring
Typically, a policy will pay benefits when you can no longer perform a certain number of ADLs, such as three of the six or two of the six.
Other Reasons: Doctor’s Certification of Medical Necessity Cognitive Impairment (Alzheimer’s) Prior Hospitalization
Reasons to not purchase LTC “I’m too young” “My family will take care of me” “Medicare and Medicaid will cover my bills” “I can save enough on my own” “LTC insurance is too expensive”
Test Your LTC KnowledgeFalse
False
True
1. Most long term care is provided in a nursing home.
2. Nearly 40% of the LTC population is under the age of 65.
3. The average length of stay in a nursing home is more than five years.
88% of people who receive LTC receive care at home or in an adult day care center. 12% receive care in a facility.
40% of people receiving LTC are working-age adults aged 18-65.
Most nursing home stays are short, recuperative stays. 10% of the nursing home population faces a stay of five years or more.
Test Your LTC KnowledgeFalse
False
True
4. Nursing home expenses are covered by Medicare.
5. People have to spend all or almost all of their assets to receive Medicaid benefits.
6. On average, a one-year stay in a nursing home costs about $25,000.
Medicare provides reimbursement for skilled care but pays nothing for custodial care.
You can’t OWN anything and be eligible for Medicaid.
Depending on where you live the average costs for nursing home care will be between $50,000 and $80,000 per year.
Longevity – A two-edged sword!!Life expectancy for women = 86
Life expectancy for men = 82
Living longer makes it more likely that you or your spouse will, at some point, need services that could be paid for by
long term care insurance.
Most Utahans live another 2.5 years beyond the national average.
What Does LTC Cost? Nursing home care is expensive
National average for a semi-private room
$69,696 Annually* (2009 data)
*Varies depending on where you live (SLC = $50,336)
What Does LTC Cost? Assisted Living is expensive
National average
$37,572 Annually* ( 2009 data)
*Varies depending on where you live (SLC = $35,000)
What Does LTC Cost? Home health care is expensive
National average
$27,300 Annually* $21/hr, 5 hrs per day, 5 days a week (2009
data)
*Varies depending on where you live (SLC = $31,200)
Who Pays for LTC?Nursing Home care
PremiumsJust like car insurance, you pay the premiums for a lifetime, unless you choose to cancel the policy.
Premiums are based on age - - so the younger you are when you sign up for coverage the less expensive the premium will be.
Planning for LTC needs
Family medical history Financial ability to pay for LTC needs Individual circumstances (family support)
As you plan for the future, you should consider:
Options Do nothing (Risk)
May not have a need Could go broke during your later years End up with Medicaid in control of your life
Rely on your children Save enough to fund your own long term care
costs Purchase some form of long term care
insurance to protect your assets and provide more choices for receiving care
MetLife LTC Insurance
BYU Employee, Spouse, Parents, Parents-in-law, Grandparents
Must be under age 75 at time of application Meet underwriting requirements
Health questionnaire Guaranteed enrollment for new employees if enrolled
within 90 days of hire date.
Premium is based on age at the time of enrollment. Available through payroll deduction.
Available to:
MetLife LTC InsuranceMetLife packets obtained by calling 1-866-414-7076
or at www.dmba.com.
Representations made in this presentation are for educational purposes and should not replace individual, personal research and plan comparisons.