There is a widespread misconception that long-term care is covered by health insurance such as Medicare or supplemental healthcare policies. Some of this confusion may stem from the fact that health insurers will cover short-term home health or nursing home stays when an illness or accident requires extended care. However, this care is limited and is deemed medically necessary for recovery. Care in a skilled nursing facility is limited to 100 days, and Home Healthcare services must be re-certified as medically necessary every 60 days.
In addition, the need for assistance with the basic personal tasks of everyday life often goes hand-in-hand with declining health. That’s likely another reason people assume that their health insurance will cover the costs associated with providing long-term assistance. However, long-term care insurance (“LTCi”) isn’t
health insurance. It may work in conjunction with Medicare or supplemental healthcare policies, but LTCi’s sole purpose is to provide services to help with the basic functions of everyday life. These basic personal tasks are called Activities of Daily Living (“ADLs”) and Instrumental Activities of Daily Living (“IADLs”).
They include bathing, continence, dressing, eating, toileting or transferring, shopping, laundry, meal preparation, housework, transportation, managing finances or using the telephone. While meeting these basic needs is necessary, they don’t require a skilled medical professional to perform them and
therefore aren’t covered by health insurance policies.
Caring for a baby is a good analogy. A healthcare provider is going to pay for most things associated with the birth of a baby and any illness that arises after the baby is born. However, parents know they’re responsible for performing the basic personal tasks of everyday until the child becomes self-sufficient, and
parents understand they must bear the cost of providing for the child’s physical needs. An adult who needs assistance with ADLs or IADLs is in the same situation as a baby. They must either depend
on family to perform those tasks for them, pay for care out-of-pocket or get care through LTCi. Unfortunately, many people wait until they can no longer qualify for LTCi.
Points to Consider
Currently, families provide the bulk of long-term assistance. This is an interesting fact when you consider that studies have shown this is a major concern for many aging Americans, and the same studies predict that 70% of us will need some sort of assistance as we age. Seniors need to consider the implication of depending on family for help with basic needs, including the loss of dignity when you can no longer function without assistance.
• Are you prepared for your child to take you to the toilet, change and bathe you?
• Can your spouse lift you if you need assistance moving from the bed to a chair?
• Is your family emotionally prepared to deal with advancing dementia?
The AnnuiCare Concept®
AnnuiCare® can provide the solution for many of those clients reluctant to purchase LTCi and
was designed to meet the needs of those who planned on self-insuring. It is an annuity/LTC combo product that provides LTC benefits at approximately one-third the cost of traditional
LTCi.
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
Guaranty Income Life has been selling AnnuiCare® since 1999 and has the most experience in the
industry with annuity/LTC combos. In addition, AnnuiCare® premiums have remained unchanged since inception-fifteen years with no LTC premium rate increases.
If you would like more information about AnnuiCare®, contact the
Guaranty Income Sales Support Team at 800.535.8110.
Advertising Compliance
Many states have adopted the NAIC’s Model Rule on Advertisements of Life Insurance and Annuities. In order to assure compliance, we’re reminding you of Guaranty Income Life’s advertising procedure, which is part of your Agent’s Contract and Guide.
Materials advertising Guaranty Income Life products should be faxed or mailed to the Sales Department with a completed Advertising Submission Form for written approval prior to use.
Requests for approval should be submitted as far in advance as possible. Some states require submission and approval of consumer advertising, and in some cases submission is required 60 days
prior to use.
Please be aware that using unapproved advertising could result in termination of your contract, fines by regulatory authorities and possible loss of license.
You may fax your advertising submissions to 225.343.1747 or email
them to sales@gilico.com. If you have any questions, please call the
Sales Support Team at 800.535.8110.
