Long Term Care Insurance

Assets don’t pay for care….INCOME does.

Long-term care insurance provides a stream of income, which can be used to pay for care.

Long-term care insurance allows your retirement portfolio to execute for the purpose it was intended – generating income to support life style and keeping prior commitments to your family and community.

Form Cash (Liquid).
Converting assets to cash is problematic.
Plus you probably have other uses for it.

From Government Programs (Medicare, Medicaid, Veteran’s Benefits)
Coverage issues can be problematic.
Is this what you really want?

Or from Income generated through from Long Term Care Insurance!
Your premiums are merely tax-deferred prepayments made at a fraction of the actual future cost of care.

A plan has two elements:

Predetermined guidelines that define how and where an individual wants to receive long-term care if necessary; and
A funding mechanism to pay for care.

Adult Day Care Centers
Assisted Living Facilities
Continuing Care Retirement Communities (CCRC)
Institutional Care
  Nursing Homes – Skilled Nursing Facilities (SNF)

Levels Of Care

Custodial (non-skilled) Care

90% of long-term care is custodial care, which is generally defined as assistance with activities of daily living (ADL’s) or supervision needed by someone with a cognitive impairment.

Extended Health Care Is A Reality

People over 65 who will require long-term care Average length of majority of long-term care claims Average life expectancy after Alzheimer’s Diagnosis After age 70
2 out of 3 people 3.8 years 4-7 years


It’s Expensive

Cost of care for one year in United States

                                       Current               in 15 years

In Home Care
(44 hours/week)             $43,472                  $90,375

Assisted Living                $38,220                  $79,457

Nursing Home
(private room)                 $75,190                 $156,315

Source: Genworth 2010 Cost of Care Survey, conducted by CareScout, April 2010

Long-term care insurance is a health qualifying product, so you have to qualify for coverage.  Unfortunately, if you have one of these pre-existing diseases or conditions, you are uninsurable.

Alzheimer’s Liver Transplant
ADL limitation – existing need for help Memory Loss
ALS (Lou Gehrig’s) MS – Multiple Sclerosis
Cystic Fibrosis Muscular Dystrophy
Dementia Parkinson’s
Heart Transplant Strokes / Tia’s – if multiple
Huntington’s / Chorea Walker or wheelchair use

Other conditions or combinations may also cause uninsurability:

Age of Applicant % Declined Coverage
< 50 7%
50-59 14%
60-69 23%
70-79   45%
70+     70%

* Helps preserve your assets and your independence

* Guarantees your choice of care and caregivers, which would allow you to stay at home longer

* Protects your standard of living

* Helps you avoid being a burden to your family

* Helps you leave more assets to our family, church, Alma mater, or other charity

* Help give you peace of mind and security

$1M    = $40,000 @ 4%
$1.5M = $60,000 @ 4%
$2M    = $80,000 @ 4%
You can’t use dollars for dual purposes.  That goes against all accounting principles. In other words, if your financial assets are invested and providing retirement income, they can’t be used to also pay for the cost of care.

Most people who say that they’re “self – insuring” are not…they’re betting.



Activities of Daily Living (ADL’s)home_2.jpg

Bathing - Getting in or out of a bathtub or shower and washing

Eating -   Manipulating utensils and eating independently

Dressing - Putting on clothes, being able to manipulate buttons and zippers

Toileting - Using the toilet without assistance

Continence -  Maintaining bladder and bowel control

Transferring - Moving from one place to another – from a bed to a chair, or from the kitchen table to the couch, for example

Cognitive Impairment - Cognitive impairment is generally defined as a deterioration or loss of the intellectual capacity, including:
  *  short or long-term memory;
  *  orientation as to person, place, and time;
  *  deductive or abstract reasoning; and
  *  judgement as it relates to safety awareness.

Skilled Care - Skilled care is defined as care so inherently complex it can only be administered under a plan of care by a physician and executed by nurses or their equivalent.

Application Process

  1. The 1st step is for you to complete an online health survey, which is secure and confidential.  We will send it to your preferred email address.  It will take you about 5 minutes to complete and return the survey.
  2. Our underwriting team will review your health situation, and submit your information to all of our companies for review and consideration.
  3. We will receive and review all positive offers for you, and make appropriate recommendations, based on your objectives, concerns, and budget.
  4. If you want to apply and see if you can qualify for coverage, our Application Partners Team will call you and complete the forms over the phone, and set up any exams or lab work as needed. A quarterly deposit is required to begin the process, which will lock in your health status at the time of application.
  5. The insurance company will request your medical records from all of your attending physicians.
  6. Once all of your information and medical records have been processed, the insurance company will make a decision on issuing your policy. If your policy is issued as applied for, it will be forwarded to me for delivery, and you can pay the balance of the annual premium to qualify for the maximum discounts allowed, or you may choose to pay on a monthly bank draft, quarterly, or semi-annual basis.
  7. This process usually takes 6-8 weeks. During this time of underwriting, you will have ample time to consider your policy benefits, and we will also be available to answer any questions or concerns you might have. During this time, you will have the opportunity of changing your policy benefits as needed.
  8. If you are declined for coverage, your deposit will be refunded.
  9. In reality, I have had policies issued as early as 15 days, and as long as 6 months, so please be patient with this process.  We may need your help in securing some of your medical records from an uncooperative physician’s office.

Long Life Strategies represents the following companies:

Genworth Mutual Of Omaha
John Hancock OneAmerica
LifeSecure Insurance Company Transamerica
Lincoln Financial Money Guard Reserve United of Omaha

Our services include:

Estate, Retirement, and Extended Health Care (Long-Term Care) Planning, using life, disability, and long-term care insurance, along with annuities in a tax-advantaged process.

Be responsible! Think long term NOW.
Contact Steve Norris today or request a quote here.