Your Asset-Based LTC Opportunity

Transcription

1 Your Asset-Based LTC Opportunity Presented by Michelle Prather, National Accounts Vice President FOR AGENT USE ONLY; NOT FOR USE WITH CONSUMERS Product and rider availability, features and rates may vary by state.

2 Average Cost of LTC Care $87,600/year Private room 2024* $123,568/year Private room 2034* $174,305/year Private room Trends that could impact costs of long-term care: 1. Baby Boomers number of people needing care at same time 2. Medical Technology Life expectancy increasing, costs more 3. Family Dynamics Who is providing care now? 4. Government What programs will be available? Who will qualify? *Assumes medical 3.5%

3 Estimated Costs in 20 Years Based on Averages $174,305 per 2.2 yrs for men = $383,471 $174,305 per 3.7 yrs for women = $644,928 $174,305 per 8 yrs for Alzheimer s = $1,394,440 About 70% of individuals over age 65 will require at least some type of long-term care service during their lifetime More than 40% will need care in a nursing home for some period of time Women need care longer (avg. 3.7 years) than men do (avg. 2.2 years) SOURCE: The National Long-Term Care Clearinghouse: U.S. Department Source: U.S. Department of Health and Human Services, 4/12/12

4 Two Questions Every Financial Professional Should Ask Their Clients: 1 You may never need care, but if you did, how will that affect your family? Spouse? Adult children? Family dynamics? Finances? 2 And If you did need care, how would you pay for it? Government? LTC insurance? Self fund?

5 Example: Asset-Based LTC With Life Insurance Concept Aggressive Moderate Conservative $125k Cash Value Death Benefit Long-term Care $250k Typical portfolio assets: Aggressive assets positioned for significant growth with the acceptance of the risk of loss of principal Moderate assets positioned for some growth with the acceptance of some downside risk Conservative assets positioned for conservation of principal, often with guarantees Lifetime LTC (Unlimited)

6 Asset Care Asset Care I Asset Care II Asset Care III Asset Care IV Annuity Care Annuity Care Annuity Care II Indexed Annuity Care Legacy Care Immediate Care Care Solutions Portfolio Whole life insurance with LTC benefits (Single Premium) Cash or cash equivalents (Single Premium) Existing nonqualified annuities via 1035 exchange (Single Premium) Qualified money via direct rollover (Annual Premium) 10-pay up to 20-pay or whole life pay Single premium annuity with LTC benefits Cash, qualified money, existing nonqualified annuities exchange Cash or existing nonqualified annuities via 1035 exchange Cash, qualified money, existing non-qualified annuities 1035 exchange Single premium deferred annuity Designed for the retiree market Immediate Lifetime annuity (SPIA) Designed to help fund LTC or provide retirement income

7 Asset Care Asset Care I Asset Care II Asset Care III Asset Care IV Annuity Care Annuity Care Annuity Care II Indexed Annuity Care Legacy Care Immediate Care Care Solutions Portfolio Whole life insurance with LTC benefits (Single Premium) Cash or cash equivalents (Single Premium) Existing nonqualified annuities via 1035 exchange (Single Premium) Qualified money via direct rollover (Annual Premium) 10-pay up to 20-pay or whole life pay Single premium annuity with LTC benefits Cash, qualified money, existing nonqualified annuities exchange Cash or existing nonqualified annuities via 1035 exchange Cash, qualified money, existing non-qualified annuities 1035 exchange Single premium deferred annuity Designed for the retiree market Immediate Lifetime annuity (SPIA) Designed to help fund LTC or provide retirement income

8 Example: Asset-Care I - Joint Contract 64 & 64 Life Insurance policy Continuation of Benefits Rider optional $125,000 $250, months 1 $5,000 Per person HIGHLIGHTS: or $250, months LIFETIME = $500,000 $3,000/year Premiums guaranteed! Ages 40 to 80 Single or patented joint life option Guaranteed return of premium Guaranteed cash value growth Optional lifetime coverage available with premium guaranteed to never increase Funding: Cash, CDs, savings, brokerage accounts, 1035 Life Cash Value

9 Example: Asset-Care III - Qualified Money $117,000 $125,000 Asset Care IRA $8,000 Annual Taxable withdrawal $133,000 Additional life insurance with LTC benefits 1 $250, months $5,000 Per person or $250, months = $500,000 LIFETIME HIGHLIGHTS: Ages: 59½ to 80 Patented joint life option or single life Guaranteed return of premium Guaranteed cash value growth Optional lifetime coverage available with premium guaranteed to never increase Funding: 401k, IRA, 403b, qualified monies

10 Linked Benefit Case Studies Presented by Liz Gibbons RVP, Protection FOR AGENT USE ONLY; NOT FOR USE WITH CONSUMERS Product and rider availability, features and rates may vary by state.

11 Female Age 65 5-Pay $20K per year Min. LTC Duration - 6 Years Showing Policy Years: 1-25 All values and benefits shown are guaranteed 1 1 -Projection values based on guaranteed maximum policy charges and guaranteed minimum credited rate. No-Lapse Protection provided by the Value Protection Rider. This projection assumes all planned premiums paid on due date.

12 Female Age 65 5-Pay $20K per year Min. LTC Duration - 6 Years Continued Illustration

13 Female Age 60 Single Pay Lump Sum $100K Min. LTC Duration - 6 Years Showing Policy Years: 1-25 All values and benefits shown are guaranteed 1 1 -Projection values based on guaranteed maximum policy charges and guaranteed minimum credited rate. No-Lapse Protection provided by the Value Protection Rider. This projection assumes all planned premiums paid on due date.

14 Female Age 60 Single Pay Lump Sum $100K Min. LTC Duration - 6 Years Continued Illustration

15 Female Age Pay $10K per year Min. LTC Duration - 6 Years Showing Policy Years: 1-25 All values and benefits shown are guaranteed 1 1 -Projection values based on guaranteed maximum policy charges and guaranteed minimum credited rate. No-Lapse Protection provided by the Value Protection Rider. This projection assumes all planned premiums paid on due date.

16 Female Age Pay $10K per year Min. LTC Duration - 6 Years Continued Illustration All values and benefits shown are guaranteed 1 1 -Projection values based on guaranteed maximum policy charges and guaranteed minimum credited rate. No-Lapse Protection provided by the Value Protection Rider. This projection assumes all planned premiums paid on due date.