• Long-term Care
    Getting Started Guide

    Unlock your long-term care planning potential

  • Consider the odds

    They would never
    go without homeowner’s coverage, yet only 10% of people over the age of 65 own a long-term care policy.2

    1 http://www.ltctree.com/ltc-basics/the-chances-of-needing-long-term-care.html, 09/19/12.

    2 What to Know About Long-term Care and Medicaid- The Wealth Channel- 2011.

     

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  • Baby boomers and long-term care

    Around 10,000 baby boomers will retire every day until the year 2030.3

    Health care costs are likely to be among your clients’ largest expenses in retirement.

    Only 17% of baby boomers have planned for their long-term care needs.4

    3 The 2011 Sourcebook for Long-term Care Insurance Information – AALTCI 2011, U.S. Census Bureau.

    4 What to Know About Long-term Care and Medicaid — The Wealth Channel — 2011.

     

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  • Crunch the numbers

    Average stay in a nursing home:
    2½ years

    5 Mature Market Institute, Market Survey of Long Term Care Costs, October 2011.

     

     

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  • Crunch the numbers

    Average length of care outside of a nursing home: 4½ years

    6 Mature Market Institute, Market Survey of Long Term Care Costs, October 2011.

     

     

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  • The Need for a Plan

    Statistics show that the likelihood of needing some kind of long-term care is significant.

    By 2030, the cost for a semi-private room is expected to be $265,000 per year.7

    These costs are not covered by health insurance, Medicare or the other plans people typically assume will pay for these costs.

    7 LifeHealthPRO, “This Isn’t Your Parent’s Retirment”, October 4, 2012.

     

     

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  • How Life Insurance Can Help

    Life insurance with a long-term care rider gives your clients a tax-efficient way to help face these expenses. This combination enables them to:

    Maintain some control

    • Helps manage long-term care costs so they don’t deplete assets
    • Offers the potential to stabilize premiums so they don’t skyrocket as the client gets older
    • Can pay rider benefits directly to the policyowner for qualifying expenses without the need for receipts (this is referred to as an indemnity-style benefit)
    • By using excess funds not needed for qualified care to cover other expenses

     

     

     

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  • How Life Insurance Can Help

    Life insurance with a long-term care rider gives your clients a tax-efficient way to help face these expenses. This combination enables them to:

    Help protect their family

    • From financial hardship
    • By leaving an inheritance to family members or even a favorite charity
    • From the possible stress and fallout of having to care for aging family members

    And if the insured never needs long-term care, the beneficiary receives the death benefit from the policy — which helps eliminate the “use it or lose it” objection many people have to traditional long-term care policies.

     

     

     

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  • Identifying Clients

    Life insurance with an additional long-term care rider may be a good solution for clients who:

    • Are between the ages of 55 and 65
    • Want a plan for dealing with potential long-term care costs
    • Objected to traditional long-term care policies in the past
    • Have assets that could be re-purposed for legacy enhancement and long-term care needs
    • Recently experienced dealing with a parent’s long-term care situation

    It may also be helpful to look at the adult children of aging parents. They are likely to be concerned with protecting both their parents’ care options and their own financial wellbeing.

     

     

     

  • Identifying Clients | Bob's Story

    Bob is saving for both retirement and college expenses for his children. He’d also like to have a plan for his mother to cover long-term care expenses if she ever needed care. With his other obligations, Bob may not be able to help her financially and he doesn’t want her to have to rely on government assistance — which would require her to spend down her assets and limit her options for care.

    Picture of man representing the main character of the story on this page

    Please note that your clients should consult their tax advisors when implementing this plan.

     

     

  • Consider the odds

    STARTING YOUNG

    81%
    of people purchasing long-term care
    coverage are under the age of 65 8

    56%

    of sales were to people age 55-649

    22%

    of sales were to people age 45-549

    8 American Association for Long-term Care Insurance, 2012 LTCi Sourcebook

    9 The 2012 – 2013 Sourcebook for Long-term Care Insurance Information — AALTCI 2012.

     

  • Identifying Clients

    Women are especially vulnerable to the devastating effects of long-term care expenses. A longer life expectancy means they have to stretch their retirement savings farther and are more likely to require long-term care later on. In fact:

    • More women than men purchase long-term care coverage10
    • More women go on long-term care claims than men10
    • Women statistically will be on long-term care claims longer than men11

    10 The 2012 – 2013 Sourcebook for Long-term Care Insurance Information — AALTCI 2012.

    11 LTC Partner-Long Term Care Covered, “Choosing the Right Long Term Care Insurance Benefit Period, Oct, 19th, 2011.

     

  • Identifying Clients | Shelly's Story

    Shelly's mother recently lost her battle with Parkinson’s Disease. She was unable to live alone for the last three years of her life, so she lived with Shelly. Shelly’s brothers both live out of town, making her the primary caregiver. This new role wore on Shelly physically and emotionally — she even had to pass up the promotion she’d been working toward for years. Shelly’s parents never planned for long-term care expenses, feeling the additional coverage was a waste of money. But Shelly sees how helpful long-term care coverage would have been for her mom. Having the money to hire help would have given Shelly the opportunity to continue her career path.

    Picture of woman representing the main character of the story on this page

     

     

     

  • Identifying Clients

    Women represent 75% of all informal caregivers.12

    80% of men die married & 80% of women die single.13

    1 in 10 women discuss the possibility of long-term health care.14

    12 Completelongtermcare.com, August 2012.

    13 http://www.wiserwomen.org/index.php?id=184, 09/20/12.

    14 Healthcare Costs in Retirement, Feb 2012, Harris Interactive

  • Breaking the Ice

    Once you’ve identified a potential long-term care client, you can use the following questions to help start a conversation on the need for, and benefits of, planning.

     

     

     

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  • Breaking the Ice

    How would you feel about a plan that would allow you to stay in your home should you no longer be able to care for yourself?


    Ask these questions to dig deeper:

    • Did you realize that half of all long-term care claims are for home health care?
    • Would you like a plan that gives you the flexibility of choosing who your providers are?
    • What would you think about a plan that allowed you to spend excess benefits not needed for medical care any way you choose? (for example: paying prescription costs, allowing a family member to supplement your care)

     

     

     

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  • Breaking the Ice

    Do your children have the physical ability or financial stability to care for you later in life?


    Ask these questions to dig deeper:

    • Can your child afford to quit work or reduce hours to care for you?
    • Do you want to move where your child lives?
    • Is it possible that one child will have to bear the majority of the responsibility for your care?
    • Have you actually discussed your long-term care plans with your adult children?

     

     

     

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  • Overcoming Objections

    Use the following list of suggestions to help overcome common objections and help your clients prepare for the future.

     

     

     

  • Overcoming Objections

    Concern:

    Long-term care coverage is too expensive.


    Points to consider:

    Life insurance with a long-term care rider can be surprisingly affordable. While the exact cost will vary based on your clients’ age, sex and other factors, adding the rider to their life insurance policy may increase costs by as little as a few hundred dollars each year.

     

     

     

  • Overcoming Objections

    Concern:

    I already have a stand-alone long-term care insurance policy — I don’t need any more coverage.


    Points to consider:

    Life insurance with a long-term care rider can be used to supplement the coverage your clients already have in place. It can serve as a backup in case they exhaust their stand-alone policy’s benefits or simply to provide additional funds. Please keep in mind that any amount of total benefits that exceeds whichever is greater, the daily HIPAA rate or the actual bills for care, will be taxed as ordinary income.

     

     

     

  • Overcoming Objections

    Concern:

    If I need care, Medicaid or Medicare will take care of the costs.


    Points to consider:

    To qualify for Medicaid, your clients’ assets can’t total more than a few thousand dollars (the exact amount varies by state), and rules are strict to prevent people from giving away assets to qualify. For those who do qualify, choices are very limited: they can’t make their own decisions about the type and place of care.

    Medicare is very limited in what sort of care it will pay for, and how long it will pay. It is limited to skilled care, which is defined as short-term services to help patients recover from something. Medicare will pay for up to 100 days’ worth of skilled care; the first 20 days are at no cost, but the remaining 80 days require a co-pay. Chronic care, as many Alzheimer’s and stroke patients need, is not covered by Medicare.

     

     

     

  • Overcoming Objections

    Concern:

    If I never need long-term care, the money I spend on a policy will be wasted.


    Points to consider:

    With some long-term care riders, if your clients are fortunate enough to never need care, the death benefit will be paid to their beneficiaries as with any life insurance policy.

     

     

     

  • Next Steps

    Review Our Product Solutions

    Your clients each have their own unique needs and goals for the future. At Nationwide we offer long term care insurance coverage as part of a life insurance policy, either as a rider or a linked benefit.

     

     

     

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  • Next Steps

    Now that you have more information on long-term care planning:

    1. Look through your book of business.
    2. Schedule a meeting with potential long-term care clients.
    3. Use the questions in this guide to help you get the conversation started.
    4. And give us a call if you have questions or want to discuss a specific case.

    National Sales Desk:

    1-800-321-6064


    Nationwide Financial Network®:

    1-877-223-0795


    Brokerage General Agents (BGAs):

    1-888-767-7373

     

     

     

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