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Long Term Care Insurance (LTC) Why Would I Ever Need LTC?

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Presentation on theme: "Long Term Care Insurance (LTC) Why Would I Ever Need LTC?"— Presentation transcript:

1 Long Term Care Insurance (LTC) Why Would I Ever Need LTC?

2 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, or disability. It is a RISK insurance. Just like car insurance – you buy it and hope you never need to make a claim!

3 What is Long Term Care Insurance (LTC)? Coverage includes: Skilled services, Intermediate Services, and Custodial Services Provided through: Home Health Care, Adult Day Care, and Nursing Home Care

4 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.

5 Purpose of LTC Other Reasons: Doctors Certification of Medical Necessity Cognitive Impairment (Alzheimers) Prior Hospitalization

6 Myths about LTC Im 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

7 Test Your LTC Knowledge 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.

8 Test Your LTC Knowledge 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 cant 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.

9 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.

10 What Does LTC Cost? Nursing home care is expensive National average for a semi-private room $52,000 Annually* *Varies depending on where you live (SLC = $40,800)

11 What Does LTC Cost? Home health care is expensive National average $20,000 Annually* $18/hr, 5 hrs per day, 5 days a week *Varies depending on where you live (SLC = $22,100)

12 Projected Future Costs of LTC $176,090 $52,000 $66,367 $108,104 Based on national average figures. Varies depending on where you live.

13 Who Pays for LTC?


15 More often than not~ YOU DO!!!

16 Premiums Just 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.

17 Premiums If you plan to sign up for long term care insurance it is best to do so around age 45.

18 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:

19 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

20 Plan Comparison Options Benefit period 3 years, 5 years, 7 years, unlimited Length of waiting period 90 days, 6 months, 1 year Coverage Home Health, Adult Day Care, Nursing Home Respite Care, Hospice Benefit

21 Plan Comparison Options Eligibility Triggers Activities of Daily Living (how many?) Alzheimers Amount of daily benefit ($100, $150, etc.) Waiver of premium Non-forfeiture provisions

22 Plan Comparison Options Return of premium benefit Inflation factor Care management benefit Grace period Payment options Cost

23 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 Premium is based on age at the time of enrollment. Available through payroll deduction. Available to:

24 MetLife LTC Insurance MetLife packets obtained by calling 1-800-438-6388, or at



27 Representations made in this presentation are for educational purposes and should not replace individual, personal research and plan comparisons.

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