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Putting the Entire LTCI Presentation Together. Its Simple!. FOR PRODUCER USE ONLY. NOT TO BE SHOWN TO THE PUBLIC. Long term care underwritten by Genworth Life Insurance Company and in New York, by Genworth Life Insurance Company of New York. ©2008 Genworth Financial, Inc. All rights reserved. .
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Putting the Entire LTCI Presentation Together Its Simple! FOR PRODUCER USE ONLY. NOT TO BE SHOWN TO THE PUBLIC. Long term care underwritten by Genworth Life Insurance Company and in New York, by Genworth Life Insurance Company of New York. ©2008 Genworth Financial, Inc. All rights reserved. 45600 051608
Lets Make the LTCI Sale SIMPLE… • S:See the Client • I: Impart the Risk • M: Make a Plan • P: Present the Plan • L: Look at Benefits • E: Examine Underwriting Its Simple!
See the Client • How do you react to direct mail pieces to your home? Like many of us • You probably toss it or • It clutters your desk or kitchen counters • Reading and responding without a follow-up from the sender can be rare • Follow up with the client and ask for an in person appointment • If there is pushback: • “It is difficult for me to send the best information without fully understanding your situation and needs. I have a great brochure called Check the Facts…I’ll send it to you with a reminder of our appointment.” Its Simple!
Impart the Risk • The Harley 3-Step Process is the best approach • 1. It must be established beyond a reasonable doubt that the client believes he may live a long life and when he does he may need care. • 2. It must be established beyond reasonable doubt that the client understands the impact providing care will have on his family and best thought out retirement plan. This allows for the drafting of a plan. • 3. It must be established beyond a reasonable doubt that nothing will pay for that plan except LTCI Its Simple!
Step One: • Establishing beyond a reasonable doubt that the client may live a long life and very well may need care • Everyone in this room believes they will live a long life • Your clients believe that also • If you live a long life • You get old • When you get old, you may get sick, at least frail • When you get sick or frail, you may need care • If your client can’t agree with this point, it will be difficult to put together a plan to cover potential long term care costs • Leave immediately • If they agree – move to Step 2 Its Simple!
Step 2: • Establishing beyond a reasonable doubt that long term care is a family issue requiring a plan to help protect the family. • Why do people buy long term care insurance? • Because they love their family • Long term care has little to do with your client but more to do with the client’s family Long Term Care is a Family Issue Its Simple!
It’s a family issue… • The question is not who will take care of your client, his family will, but rather what providing that care will do to his family and finances • Families provide the majority of care. “Family” is defined as children which often means the daughter • Caregiver stress results in severe tension between the siblings because the responsibility is not shared equally • Long-term care rarely brings families together, it tears them apart • Children: • Don’t want to take care of parents • But they do because they love them and are concerned for their safety/wellbeing • A written plan for care helps the children provide the care longer and better • LTCI never replaces what families do. Rather it builds on an existing infrastructure of support thus allowing the caregivers to provide the care better and longer Its Simple!
Step 3 • Establishing beyond a reasonable doubt that nothing will pay to protect that plan except LTCI Its Simple!
“You have made it clear that the principal must be preserved because of the possibility of something happening in the future.” “We will use those assets to generate sufficient funds at retirement. When combined with social security and pension benefits, it will allow you to sustain your pre-retirement lifestyle as well as keep prior financial commitments.” The Two Retirement Planning Meeting Conversations Don’t Lose It Get Me Income Its Simple!
Up until now, those assets have been protected by insurance which allows them to be available for retirement. Its Simple!
LIFE Homeowners Insurance Health Auto Good Health • Ex) $750,000 • Home, Car, Cabin, Stocks, Bonds, Life Insurance Cash Value, Annuities Long Term Care Its Simple!
Questions To Ask Your Clients • You’ve allocated assets and created income for retirement… • What income or assets have you allocated to pay for long-term care? Not doing so means the client may have to rely on a government program or use retirement funds to pay for care Its Simple!
A Portion Up to 100 Days of Care and Only for Skilled or Rehab Services Skilled Nursing Home Care Rehabilitative Services Skilled Home Care Medicare or Medicaid – What Do They Pay Medicare Pays For: Medicaid Pays For: • A Health Insurance Program Based on Financial Need • Skilled Nursing Home Care • Limited Home Care in some states Medicare Does Not Pay For: Medicaid Does Not Pay For: • Home Care • Adult Day Care • Assisted Living Care • Adult Day Care • Assisted Living Care Its Simple!
What About the VA • I’m a veteran. The VA will pay for my care…” • The VA will only cover 100% of your expenses if the cause of your care need is directly related to a service injury • In 2001, the Federal Long Term Care Insurance Program was launched, recognizing that the VA does not offer comprehensive long term care to most beneficiaries Its Simple!
Self Funding The Cost Of Long Term Care • I read my clients don’t need LTCI if they have $1,500,000 or more in financial assets • Please don’t confuse having money with getting old, getting sick and potentially needing care. • If you are in this discussion, you did not spend enough time in Step 2 – don’t forget, LTC Planning Solutions are about the family Its Simple!
I’ll Give My Money to My Kids • Historically many people have tried to use transferring assets in order to qualify for Medicaid • We covered what Medicaid does and doesn’t cover a few slides back • Federal changes were enacted in 2006 “I’ll give my money to my kids.” Its Simple!
Changes to Medicaid8 things to know… • Change in the start of the penalty period – date of application • Increasing the look-back period- 5 years • Annuities- no longer an asset transfer tool • Income First Rule- no asset protection cap • Home equity can’t exceed $500K in most states • Hardship waiver • Partnership • The Medicaid program can’t pay for the care of those who could have and should have put their own plan in place Its Simple!
In the final analysis our LTC Planning Solutions, like any other type of insurance, protects a plan. In this case it allows your client’s retirement plan to execute for the purpose for which it was intended:Retirement, not paying for long term care Its Simple!
Make a Plan • Plan design rules • Buy what you know • Insure 80% of the cost of a Nursing Home • Buy Compound Inflation Protection for clients under 70 • Buy best home care available • Zero Day Home Care Benefit is a must Its Simple!
GNW Reimbursement Claims • Benefit Usage First Benefit Last Benefit • Home Health Care 74% 65% • Assisted Care Facility 12% 17% • Nursing Home 14% 18% Data as of 12/31/2007 Its Simple!
Make a Plan • Plan design rules • Buy what you know • Insure 80% of the cost of a Nursing Home • Buy Compound Inflation Protection for clients under 70 • Buy best home care available • Zero Day Home Care Benefit is a must • To cover what you don’t know • How long of a benefit period does the client need? Its Simple!
Present the Plan A Privileged Choice® Policy includes: • Built-in Joint Waiver of Premium • Built-in Survivorship Benefit • No Claims Offset Compounding 6 4 4 8 6 Its Simple!
Simplicity of StorySimplicity of Plan Design Its Simple!
Look at Benefits • Nursing Home • Assisted Living • Home Health Care Its Simple!
Facility Choices for Aging Relatives • Assisted living facilities: Residential care setting with minimal care needs • Skilled nursing facility: Medical and substantial physical care needs • Alzheimer’s facilities: Specialized care • Hospice care: In home or facility-based • Bed reservation benefit Its Simple!
Not just for Nursing Home Care: • Today’s Long Term Care Insurance Is More Than Nursing Home Care Coverage; It Can Also Cover You In Your Home And Community, Using Benefits Such As: • Nurses, Nursing Assistants and Therapists • Informal Caregivers • Homemaker/Chore Services • Assistance with shopping, housekeeping, chore services and meal preparation • Home modifications • Adult Day Care and Hospice • Alternative Plan of Care Not all product features are shown; significant product features are selected for comparative purposes only. Features, benefits, riders and discounts may vary; and certain conditions and restrictions may apply. Only the applicable policy contains actual terms and conditions of coverage. Its Simple! *These services not available in all states.
Additional Features to Look For • Monthly Benefit • Waiver of Premium • International Coverage • Survivorship benefit • Couples, good health discount • Privileged Care® Coordination Its Simple!
What is Long Term Care? • Long term care is defined as care provided to individuals due to: • A loss of functional capacity to perform 2 of 6 activities of daily living (ADLs) • OR • The need for constant supervision due to a cognitive impairment disorder such as Alzheimer’s disease or senile dementia Its Simple!
Tax Qualified LTC Policies • Tax-qualified (TQ) LTC policies must meet certain minimum standards to be eligible for special tax status. If they do, then: • Premiums can be tax deductible • Benefits are income tax free • TQ LTC policyholders receive a written plan of care which has assessed the person as a chronically ill individual for at least 90 days Its Simple!
The Claims Process Claim Initiation Care Coordination Initial Eligibility Ongoing Management Intake • Local Care Coordinator • Gather medical and physician information • Assess living environment and current support system • Assess ADL, IADL and cognitive status • Gather medication and administration information • Gather care history, current care situation • Administer cognitive screen • Assist in completion of initial claims forms • Care Coordination Supervisor • Develops plan of care • Delivers referrals to local services • Monitors ongoing needs • Makes updates to plan of care Its Simple!
Examine Underwriting • Set a Timetable for your clients • Complete the application • Explain the process – there may be requests for medical records or health interviews • Perform a final evaluation of the long term care plan in place once the policy is issued Its Simple!
Lets Make the LTCI Sale SIMPLE… • S:See the Client • I: Impart the Risk • M: Make a Plan • P: Present the Plan • L: Look at Benefits • E: Examine Underwriting Its Simple!
