Long Term Care Insurance

1. Long Term Care Insurance Note Information in this presentation is derived from Insurance for Dummies by Jack Hungelmann. I highly recommend this book.

2. LT Care covers daily living activities • Bathing • Dressing • Eating • Toileting • Transferring– e.g., bed to wheelchair

3. In 2009, the average annual cost of a private nursing home room was $80,000 Source: Kiplinger Personal Finance, March 2010 p.57 • Imagine what the number might be when you could need a nursing home • About 1 in 4 people turning 65 in 2010 will need at least one year of nursing home care

4. LT Care Insurance: Considerations • Monthly or Daily Benefit • Waiting Period: 30, 60, 90, 180 • Where you want your care: best is everywhere– a facility or home care • Benefit Period: How many years? • Inflation adjustments • When does the policy kick in?– often when help is need with two daily activities

5. Example: 6 Year, $160 Day policy for a 59 Year Old Female • Coverage: up to $345,600 (160 X 360 X 6) • Waiting or Elimination Period: 60 days • Everywhere, home or facility • Daily benefit compounds at the CPI– consumer price index Annual Premium: $2,447

6. Tough Questions • Who needs Long Term Care Insurance? • When should you buy Long Term Care Insurance?