Gilico: Assessing Long-Term Care Risk

Current Interest Rates

AnnuiCare® 10 – 3.00%

AnnuiCare® 8 – 2.55%

AnnuiCare® 7 – 2.85%

AnnuiCare® 6 – 2.45%

AnnuiCare® 5 – 2.70%

AnnuiCare® 4 – 2.35%

FlexPlus 10 – 3.00%

FlexPlus 7 – 2.85%

FlexPlus 5 – 2.70%

Guaranty 8 – 2.55%

Guaranteed 8 Years

Guaranty 6 – 2.45%
Guaranteed 6 Years

Guaranty 4 – 2.35%

Guaranteed 4 Years

Effective –

July 1, 2013

Great Guaranteed Immediate Annuity Rates! 

Call the
Sales Support Team at 800.535.8110 ext. 292 or get an online quote at

www.GILICOlink.com.

929 Government St.

Baton Rouge, LA  70802

800.535.8110 ext. 292

225.383.0355 ext. 292

225.343.1747 – fax

sales@gilico.com

www.GILICOlink.com

Assessing Long-Term Care Risk

In 2011, the Department of Health and Human Services’ (DHH) National Clearinghouse for Long-Term Care Information stated that 9 million
Americans over the age of 65 would require Long-Term Care (“LTC”) in 2011. DHH predicted that aging Boomers’ need for services would
increase 33% by 2020. It further stated that about 70% of people over the age of 65 would eventually need some form of LTC services, a need which increases as people age.

A National Care Planning Council article, “The Need for Long-Term Care Planning” by Thomas Day, cites surveys which reveal three primary concerns of the elderly.

• Maintaining their independence in their own home
• Staying healthy and receiving needed healthcare
• Having adequate finances to meet normal living expenses and not outlive their assets

Consumers will carefully plan their retirement options and often seek the advice of a financial planner to help spread their risks; and yet, few plan for the possibility of needing LTC. Long-Term Care advocates have concluded that misconceptions and the negative implications of
needing LTC and LTCi are the primary reason people avoid including it in their retirement planning.

• Long-Term Care Planning confronts people with their mortality. It implies a loss of independence and infirmity and reminds them of the indignities that are sometimes part of growing old.
• Few people know what their Long-Term Care options are or the LTC costs
  in their area.
• Few have assessed their LTC risks.
• Many find LTCi policies confusing.
• Many believe government programs will pay for their care when they need it.
• People don’t understand the level of care they may need and assume family members will care for them.

Help Your Clients Assess their LTC Risk

Encouraging your clients to consider plans for their future LTC needs will require time as they consider their risks and options. The
National Clearinghouse for Long-Term Care Information lists six risk factors for LTC.

• Age – The need for assistance increases as you get older.
• Marital Status – Single or widowed people will need more paid assistance.
• Gender – Women live longer than men, and age increases your risk.
• Lifestyle – Diet and exercise affect your risk factors.
• Health – Medical advances have prolonged life, but longer life for many will mean living with an impairment.
• Family History – Heredity can increase risk factors.

A nationally known Long-Term Care underwriting company, Univita, formerly known as Long Term Care Group, Inc., has made a quiz available that can serve as an LTC reality check.

The Planning “IQ” Quiz can help your clients assess their risk for needing LTC, their care options and to consider how their care will be paid for. It will also give you an opportunity to present a Long-Term Care solution that doesn’t require out-of-pocket premium payments, AnnuiCare®.

The AnnuiCare Concept®

AnnuiCare® is an annuity/LTC combo product that provides LTC benefits at approximately one-third the cost of traditional LTC. Because the Long-Term Care benefit is three times the annuity accumulation value for qualified LTC expenses, your clients don’t need to allocate all of their savings to provide for Long-Term Care expenses. This gives them financial flexibility with their remaining savings, which they wouldn’t have without AnnuiCare®.

Premiums are automatically deducted from the annuity so the client doesn’t need to be concerned about making monthly payments or the policy lapsing. 

AnnuiCare® helps avoid depleting life savings, the need to sell a home, or becoming financially dependent on family. AnnuiCare® gives
your clients control over their future care and helps to preserve their independence.

Once an insured is certified by a Licensed Health Care Practitioner as being unable to perform, without substantial assistance, at least two
of six Activities of Daily Living (ADLs) for a period of at least 90 days due to loss of functional capacity; or having a severe cognitive
impairment, such as Alzheimer’s Disease, an AnnuiCare® policy will pay Long-Term Care expenses up to 100% of your Daily Maximum Benefit for:

Planning for the possibility of LTC lets your clients and their families assess available care options and special conditions that may apply without time pressures or the emotional and financial stress when services are needed.

For more information about AnnuiCare®, contact the Guaranty Income Marketing Team at 800.535.8110.