Group Long Term Care Insurance

Long Term Care: an Introduction

Long Term Care Insurance provides financial protection to you and your family if you are unable to perform 2 of 6 Activities of Daily Living unassisted.

What are Activities of Daily Living (ADL)?

Bathing

Dressing

Toileting

Continence

Transferring

Eating

OR, If you are Cognitively Impaired

Long Term Care: the Cost of Care

Region (Michigan – except Detroit)

Private Nursing Home Care Cost

Semi-Private Nursing Care Cost

Assisted Living Facility Care Cost

Home Care Service Cost - 4 hours /day (hourly rate)

Minimum Daily Rate

$147.00 $147.00 $83.30 $64.00 ($16.00)

Maximum Daily Rate

$354.00 $256.00 $127.50 $78.00($19.50)

Average Daily Rate

$217.59 $197.20 $99.65 $69.52($17.38)

Estimated Average Yearly Cost

$79,000 $72,000 $36,500 $25,400 (based on 4 hours of care per day)

Long Term Care: who Pays for it?

1. Medicare pays for up to 100 days after a 3 day hospital stay

2. Medicaid pays if you have no assets

• this means you have to “spend down” any accumulated

wealth before receiving coverage.

• not all facilities accept Medicaid patients

3. You can pay for these costs out of pocket

4. A Long Term Care Insurance plan can pay for these costs.

Long Term Care Insurance: A Summary of Your Options

1. Group Long Term Care – offered by UNUM

• All employees are enrolled in a base plan, with the

opportunity to “buy-up.”

2. Individual Long Term Care

• You are still covered by the UNUM base plan

• Individual options to supplement this coverage.

Long Term Care: UNUM

As mentioned, all employees are covered by a base plan, provided by UNUM:

The Base Plan

$1,500 per month: lump sum payment made to YOU each month

2 years duration

50% Professional Home & Community Care benefit

90 day elimination period

Portable Coverage

Waiver of Premium

Bed Reservation & Respite Care Benefits

Long Term Care: UNUM

Buy Up Options

Plan 1 Plan 2 Plan 3 Plan 4

Choose your Monthly Benefit

$1,500 - $9,000*

$1,500 - $9,000*

$1,500 - $9,000*

$1,500 - $9,000*

Choose your Benefit Duration

2 year, 6 year, or Lifetime* benefit duration

2 year, 6 year, or Lifetime* benefit duration

2 year, 6 year, or Lifetime* benefit duration

2 year, 6 year, or Lifetime* benefit duration

Additional Benefits

5% Compound Inflation Rider

10 Year Accelerated Payment Rider

5% Compound Inflation + 10 Year Accelerated Payment Rider

Long Term Care: UNUM

Buy Up Options

* For new hires, the following options are available on a guaranteed issue basis:

• Monthly Benefits up to $6,000

• Benefit Durations up to 6 years

• After 31 days, all options require Evidence of

Insurability

• Benefits of $7,000 - $9,000 and Lifetime Duration

options always require Evidence of Insurability

Long Term Care: UNUM

Coverage Details:

• The monthly benefit is payable to you – not the facility or care provider.

• You do not have to provide receipts or evidence of actual expenses.

• Professional Home Care = 1 hour per day of Licensed Care

and is payable as a 50% benefit

Long Term Care: UNUM

Cost of Coverage:

• Based on your age when coverage is purchased• Rates may increase, but the rate will always be based on your original purchase age• Rates are offset by the employer base plan

http://unuminfo.com/apcpc/calculator.aspx

Long Term Care: UNUM

Cost of Coverage:

Long Term Care: UNUM

The advantage to purchasing Long Term Care early:

Example: Plan 2; 6 year benefit duration; $3,000 monthly benefit.

Purchased at age 40 and pay premium until age 85(45 years)

Total Premium Paid: $47,300

Purchased at age 55 and pay premium until age 85 (30 years)

Total Premium Paid: $55,185

Long Term Care: UNUM

More information and enrollment:

http://unuminfo.com/apcpc/index.aspx

Long Term Care: Additional Options

Customized Plans to Supplement the UNUM base plan coverage.

• Alternative to the UNUM Buy-Up

• Increased flexibility includes benefit options such as:

• Shared Care riders (if married)

• Other inflation options (3%, 4%)

• Other benefit amounts and periods

• Preferred health discounts

• Gender Pricing

• International coverage

• Refund of Premium riders

Note: Accelerated Premium riders are not available

Long Term Care: Additional Options

Two Approved Companies: Genworth Life or John Hancock

• AM Best Rating: A+

• LTCi Sales: #1 and #2

• Access to a greater selection of benefit options

• Opportunity to buy more coverage

• Premiums may be less than the UNUM group plan

Long Term Care: Additional Options

Comprehensive Planning

• Everyone needs a Long Term Care plan

• Long Term Care insurance is a way to fund your plan

• Part of your financial/retirement planning

• Personalized, 1:1 time with LTCi Specialist

Questions?

Mills Benefit Group: UNUM Group Plan

Lisa Murphy, CEBS, LIC

lmurphy@millsbg.com

616-459-1069

Ron Courser & Associates: Individual Long Term Plan Options

Nancy Courser, CLTC, CSFP®

ncourser@roncourser.com

616-301-2581