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Long Term Care Insurance


									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 Services
Provided 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
                                    Typically, a policy will pay benefits
             Dressing
                                    when you can no longer perform a
             Bathing               certain number of ADLs, such as
             Continence            three of the six or two of the six.
             Toileting
             Transferring

         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 Knowledge
                                        88% of people who receive LTC
1. Most long term care is    False      receive care at home or in an adult
   provided in a nursing home.          day care center. 12% receive care
                                        in a facility.
2. Nearly 40% of the LTC
   population is under the age          40% of people receiving LTC are
   of 65.                      True     working-age adults aged 18-65.

3. The average length of stay in
    a nursing home is more than
                                        Most nursing home stays are short,
    five years.                         recuperative stays. 10% of the
                                        nursing home population faces a
                                        stay of five years or more.
  Test Your LTC Knowledge
4. Nursing home expenses are False     Medicare provides reimbursement
   covered by Medicare.                for skilled care but pays nothing
                                       for custodial care.

5. People have to spend all or
   almost all of their assets to       You can’t OWN anything and be
   receive Medicaid benefits. True     eligible for Medicaid.

6. On average, a one-year stay
    in a nursing home costs
    about $25,000.                     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

Most Utahans live another 2.5
years beyond the national average.

  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.
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
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.
Planning for LTC needs
As you plan for the future, you should consider:
   Family medical history
   Financial ability to pay for LTC needs
   Individual circumstances (family support)
   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
Available to:
   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.
MetLife LTC Insurance
MetLife packets obtained by calling 1-866-414-7076
or at
Representations made in this presentation
are for educational purposes and should not
replace individual, personal research and
plan comparisons.

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