ADF#268.98(rev.0602) L02073WFO(exp0705)MLIC-LD Planning for Long-Term Care Helping you make sense of...

ADF#268.98(rev.0602) L02073WFO(exp0705)MLIC-LD

Planning for

Long-Term Care

Helping you

make sense of it all


Peace of Mind

Freedom of Choice

MetLife®

Metropolitan Life Insurance Company

One Madison Avenue, New York, NY 10010


What is

your

current lifestyle?

• Family

• Occupation

• Recreation

1


What would you

do if you needed

long-term care servicesWhat is long-term

care?• The care needed when you are no longer able to care for yourself independently.

• Assistance needed with Activities of Daily Living (ADL’s)

eating dressing bathing transferring toileting continence

• Substantial supervision for a severe cognitive impairment, such as Alzheimer’s Disease.

2


Where are

long-term care

services provided?• At Home

• In various facilities that assist people with long-term care needs; for example, assisted living facilities, residential care facilities or residential care facilities for the elderly*

• In community settings, such as adult day care or adult day health centers*

• In hospice home-care programs or facilities

• In nursing homes

*Please review the MetLife Long-Term Care Policy for the types of facilities covered in your state.

3


Types of care given

in the U.S. today

Personal Care (custodial care):

• Care provided by someone, other than a nurse, who assists with activities of daily living, in response to chronic health-care needs.

Skilled Nursing Care:

• Care provided by an R.N. or L.P.N. on a 24-hour basis; must be ordered by a physician.

4


Have you ever known someone

who needed long-term care either at home or elsewhere?

5


Could it

happen to you?

• People of age 65 face at least a 40% lifetime risk of entering a nursing home 1

• Average nursing home stay is 2.6 years 2

• 10% will stay 5 years or longer 1

(1) Health Insurance Association of America, “Guide to Long-Term Care Insurance”, 2002

(2) Conning & Company, “Long-Term Care Insurance: Baby Boom or Bust?”, 1999

6


What plans have you made for staying at home?

What is the cost of care 3

•Nursing Home Care can cost an average of $52,195 per year (for a semi-private room)

• Home Health Care can cost an average of $23,400 per year (for a Home Health Aid)

• In some regions, it can cost twice as much

(3) Mature Market Institute, “MetLife Market Survey on Nursing Home and Home Care Costs”, 2002

7


Who pays for long-term care services? 4

If you needed long-term care services, you could deplete $500,000 in retirement savings in less than 6 years 5

(4) Department of Health and Human Services, HCFA, Office of the Actuary, National Health Statistics Group, Personal Health Care Expenditures, 2001

8

(5) Based on assumptions of $50,000 per year household living expense with 3% annual inflation, $52,195 per year long-term care cost plus 5% annual inflation, and the remaining savings earn 8% per year. Although the average nursing home stay is 2.6 years, 10% will stay 5 years or longer (see page 6)


Does Medicare pay?

• Covers only 13.7% of long-term care costs on a national basis 6

• Pays 0% for custodial care (personal care) in a skilled nursing facility if that is the only kind of care you require 7

(6) Department of Health and Human Services, HCFA, Office of the Actuary, National Health Statistics Group, Personal Health Care Expenditures, 2001 (7) The National Underwriter Company, “All About Medicare”, 2002

9


Does Medicaid 6 pay?

• Government funding only if you meet certain income and asset criteria

• Requires “spending down” of personal assets

• You may be temporarily ineligible for benefits if you transfer assets

(6) In California, Medicaid is referred to as Medi-Cal

10


What other risks have you insured against?

Chances are, you pay premiums to ensure that your car or belongings will be repaired or replaced if they’re damaged. Doesn’t it make sense to make a similar commitment to your own well-being by purchasing Long-Term Care Insurance?

11


Why do people purchase long-term care insurance? 8

•To avoid depending on family and friends for care

•To help maintain options on how and where to receive care

•To help ensure high-quality care, at an affordable price

•To avoid using retirement income to pay for long-term care services

(8) ACLI, “Making the Retirement Connection: The growing importance of long-term care insurance in retirement planning”, Stucki, B., March 2001

12


How long can you afford to pay for long-term care services using your retirement savings?Let MetLife help pay for the long-term care expenses you may have in the future

How do people pay for long-term care services?Oftentimes, from personal assets

13


MetLife: a trusted leader in the insurance industry• Financially solid

• Strong leadership

• Proud history

• Excellent service

14


How do I get coverage?

• Application

• Underwriting

• Approval

• Delivery

15


In the District of Columbia, Idaho, Michigan, Rhode Island, West Virginia and Wyoming, coverage is offered by the following Metropolitan Life Insurance Company policies: LTC-VAL, LTC-IDEAL, LTC-PREM, LTC-FAC (LTC-FAC-MI in Michigan)

In every other state, coverage is offered by the above referenced policy numbers followed by the state’s 2-letter abbreviation. Please note LTC-FAC is not available in Oregon, Rhode Island, Vermont and Georgia.

Note: Like most long-term care policies, MetLife’s policies contain certain exclusions, limitations, waiting periods, reduction of benefits and terms for keeping them in force. Ask your representative about complete costs and details

ADF#268.98(rev.0602) L02073WFO(exp0705)MLIC-LD Planning for Long-Term Care Helping you make sense of...

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