Long Term Care Selling Tips

1. Long Term Care Selling Tips Dawit Hamilton, BA, CFP, CLU,CHS

2. Key Documents Does YOU and your clients have a Will and a Power of Attorney for Personal Care? If so… how is it funded?

3. Wills and POA • 56% of Canadians do not have a will • 29% do not have a will because they: • either do not know how to get started; or • believe they cannot afford one. • Power of Attorney Kit available on Ontario Ministry of the Attorney General website free of charge

4. Power statements!

5. LTC = DI for retired or close to retired peopleDignity Insurance

6. Obstacles Clients don't believe they are getting older

7. Life Expectancy Calculator • Desjardins Life Insurance Life Expectancy Simulator

8. Obstacles Clients don't believe they are getting older Clients think the Health Care System will take care of them and their loved ones.

9. Ontario Healthcare Budget

10. Obstacles Clients don't believe they are getting older Clients think the Health Care System will take care of them and their loved ones. Worry about it when the time comes. Perhaps we are waiting for the Perfect Product.

11. “ My kids will take care of me! When was the last time you lent money to your kids? And these are the people you expect to take care of you?

12. Target age: 50 - 65 Why?

13. Over 65 Health problems are more prevalent – very discouraging when entering the LTC field to have 3 out of 4 applications rejected for health reasons.

14. Top markets for LTC Single/Widowed Women Who will take care of them when they need it. Average woman is widowed 7 years. Married Middle Class Couple Do not want to burden kids Want to protect their future estate Have fewer kids to take care of them Family unit is changing

15. Another market:Critical Illness Declines? A large percentage of CI Declines can qualify for LTC

16. Examples • Cancer • Breast Cancer – 12-24 month stability period • Prostate Cancer- 12-24 month stability period • All other Cancers- 24-36 month stability period • Hear Disease/Attack • 6-12 monthly stability period • Stroke • 24 month stability period and No tobacco usage

17. Examples • Diabetes • 6- 12 month stability period • < 40 MG of insulin per day and NO tobacco usage- Standard • High Blood Pressure/Hypertension • 6-12 month stability period • Long Term Care Underwriting Guide

18. Pre-screen, Pre-screen, Pre-screen!

19. ? Power questions ?

20. Who would you like to have bathe you?Make a list…

21. 2 Two important questions 2

22. 1 If you got to a point where you required care… Where would you want it? Answer:my HOME

23. 2 If you needed a facility… Where would it be and what would it look like? Answer:near my home, like my home

24. Bring it closer to home Have you or someone you know been a care giver?... What was that like?.... Has Grandma/Mom ever come to live with you?... What was that like?... Have you had a relative in a Long Term Care Facility?.... What was it like?...What type of Financial Burden did that cause?

25. Positing Statement " In order to maximize your retirement planning strategy, I would like to introduce you to a new financial program that increases your retirement income should you develop any serious health problems. I'd like to schedule a meeting to discuss this program in greater detail and determine eligibility. Are you available on ……."

26. Individual Client Files Determine the "Erosion Factor" Erosion v.s Preservation

27. RRIF Income Phase Planning for income to last a lifetime … what effect will a loss of independence have? xxx Accumulation Phase Will you? • Withdaw from your RRIF to cover the health care costs? • Reduce your RRSP savings as shown? $800 $600 $500 $400 $300 $200 $100 thousands or • PurchaseIndependent Livingfrom DFS to provide LTC funds? And ensure your savings last a lifetime Age 55 58 61 64 67 70 73 76 79 82 85 88 91

28. Individual Client Files Determine the "Erosion Factor" Erosion v.s Preservation Build a major Heath Care expense into the retirement plan

29. For people ages 50+ Health Care Critical Illness, Long-term Care Major Issue Income Needs Retirement Plans Pension Plan, RRSP/RRIF, CPP, OAS Solid Base Assets Home, investments, permanent life insurance (final expenses, Estate Preservation, family legacy)

30. Individual Client File Determine the "Erosion Factor" Erosion v.s Preservation Build a major H/C expense into the retirement plan Know where the premium is coming from

31. Preserve your legacy With a $200,000 portfolio, a 1% return can be utilized as a premium for LTC in a typical married couple situation.

32. Develop Positioning Conversation Connect Wealth to Health The greatest threat to depleting your wealth has little to do with… Markets/ROI Inflation Overspending

33. File Prep Application Portfolio Crash Test 2- 3 illustrations. Start with max cost of gov't care approx. $2,500 Care Costs brochure

34. For example $2,000/month each, lifetime, 90 day E/P

35. Children purchasing LTC on parents Smaller family size. Geographical constraints. Split premium among children. Must face the fact that they will probably have to look after their parents Pay now or Pay later…

36. For example Female age 64 Lifetime Benefit $2,500/month 90 day Waiting Period Premium = $3,836/annum Split the premium between Father, Mother and the two children = $960/annum each

37. Selling tips: Understand terms/definitions Retirement Home Care Nursing home/long term care facility Home Care Assisted Living Respite Care Hospice Care Alzheimer Care

38. Five Reasons Clients Consider LTC • Preserve Lifestyle/ standard of living & protect assets • Burden to spouse/ family • Freedom of choice and independence • Access to quality care • Peace of mind- help is available when needed

39. Thank you.