Consumers 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 Long-Term Care (“LTC”). Long-Term Care advocates have concluded that misconceptions and the negative implications of needing LTC 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 Long-Term Care insurance (“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.
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 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
Addressing these concerns requires an LTC reality check.
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, Long Term Care Group, Inc., has made a
planning quiz available that addresses these risks.
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. 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:
Home Health Care*
Homemaker Services
Hospice Services
Personal Care Services
Assisted Living Facility Care
Alternative Care Services
Nursing Home Care
Respite Care
Adult Day Care (50% of Daily Maximum)
*Includes Adult Foster Care in Oregon
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 Sales Team at 800.535.8110.
This message was sent from Guaranty Income Life Sales Team to gilico@aimforltc.com.
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