By David C. MorelandVice President of Sales and Marketing

Ihave explained the lifecareproduct that we offer hereat Shell Point to thousandsof people. One of thethings I find interesting isthe varied backgrounds ofthese individuals. I’ve

talked to retired doctors, schoolteachers and college professors,lawyers, mail carriers, farmers,CEOs from Fortune 500 compa-nies, housewives, pastors and mis-sionaries, military officers, inde-pendent business owners, and somany others. While their back-grounds are unique, one thingthese people have in common isthat they are “planners.”

Are you a “Planner” or a“Wait and See”?

Some people don’t want tothink about what the future mightbring. They prefer to take a “waitand see” approach to life, whichtends to bring unpleasant surpris-es. “Planners” do not take a “waitand see” approach, but ratherthey want to prepare in advancefor the possibilities – both goodand bad – that may come along.By planning for the future, “plan-ners” not only protect themselves,but they also protect their chil-dren from having to assume thatresponsibility later on.

The odds are great that you orsomeone you love will need long-term care at some point in life.According to the Agency forHealth Care Policy and Research,almost half of Americans whoreach age 70 will need some typeof long-term care during theremainder of their lives. Plus, thecost of long-term care can be stag-gering. Currently, the average costof a year in a nursing home ismore than $58,000. Around theclock care at home can be calculat-ed at a fee of about $15 an hour fora private-pay, licensed homehealth aide, and a nurse can costtwo to three times more.

What About Medicare?Many people unfortunately

assume that Medicare will takecare of them if they need to go intoan assisted living or skilled nurs-ing home. But that is not the case.Medicare does not pay for anyassisted living, and Medicare hasvery specific, narrowly-definedrules for what it will pay for anursing home stay, which is basedonly on recuperative care follow-ing a hospital stay. In other words,a lingering or chronic illness suchas Alzheimer’s or Parkinson’swould not even be considered.

In the 2003 Guide to Medicare,

the explanation of benefits statesthat, following a 3-day hospitalstay, Medicare will pay nursinghome costs for each benefit periodas follows: For the first 1 through20 days, Medicare will pay 100%of the stay. On the 21st daythrough the 100th day of skilledcare, the patient is required to pay$105 per day. After day 100,regardless of the patient’s condi-tion, Medicare will no longer payfor any of the nursing care stay.You are required to pay 100% ofthe costs incurred. It is easy to see

why Medicare is not the answer.

What Is Long-Term Care?Long-term care is a variety of

support services for people wholack the ability to take care ofthemselves. Long-term care maybe needed for a short period oftime following a surgery orminor health crisis, or it may beneeded for an extended period oftime in the event of a catastroph-ic illness or injury. There are sev-eral levels of long-term carebased on the amount of careneeded by the individual. Long-term care can be provided in yourown home, in an assisted livingfacility, or in a skilled nursingcenter (nursing home).

At Shell Point, The LarsenPavilion provides 24-hour skillednursing care by licensed medicalprofessionals under the directorders of a physician. Assistedliving is provided in the King’sCrown and The Arbor at ShellPoint for people who need gener-al assistance with activities of

daily living, such as bathing,housekeeping, dressing, transfer-ring, preparation of meals, or themedically-supervised distribu-tion of their medications.

Both assisted living and skillednursing are included in the life-care plan at Shell Point.

What Is the DifferenceBetween Long-Term CareInsurance and Lifecare?The differences between long-

term care insurance and the life-care product offered by ShellPoint are many; however, thereare three main differences that Ifeel merit some examination indetail. They can be identified asCost, Crisis and Care. Below is abrief description of each distinc-tion; however, there is not enoughroom in this article to clearly gointo great detail. I would recom-mend that you speak with anexpert in the field of financialplanning regarding this, or anyother information, on long-termcare insurance. For informationabout lifecare, I hope you willavail yourself of one of the manypresentations we give at ShellPoint about lifecare, or perhapsyou would like to make a person-al appointment for a free privateconsultation with a retirementcounselor.

A secure retirement includesknowing that you have takenevery possible step to protectyour assets from being depletedand losing your independence inthe event of a health crisis, suchas a devastating illness or dis-abling injury that would requiresome form of long-term skillednursing care.

Long-Term Care Insurance Long-term care insurance is

intended to protect an individualfrom a portion of the financial risksassociated with long-term care thatcould be needed in the future.Long-term care insurance guaran-tees that a specific amount ofmoney will be available to pay fora specific amount of care in thefuture. In other words— a check in the mail.

For individuals inmiddle age, there is sel-dom an immediateneed for long-term care at thatstage of life. Prior to age 60, theodds are in your favor that youwill not need to make a claim onthe insurance. Many people pur-chase long-term care insurance atthis stage to establish a lowermonthly premium price based ontheir current age. As the customerages, the premiums go up incre-mentally.

Lifecare at Shell PointLifecare at Shell Point is avail-

able to individuals age 60 andolder and provides a contract forcare that guarantees a personalresidence, numerous supportservices, a comprehensive lifestyle

amenities package, and unlimitedlong-term care for life in eitherassisted living or skilled nursing,as needed. In the three areas ofcost, crisis and care, the lifecarepackage offers a very compellingcase to the careful life planner.

Lifecare at Shell Point is fundedby a one-time entrance fee andmonthly maintenance fee. Thesecombined fees guarantee a privatecondominium-type residence,interior and exterior maintenance,housekeeping, a fulfilling lifestyleamenities package, and what webelieve to be the most comprehen-sive array of assisted living,skilled nursing and physicianservices in the industry. Theentrance fee and monthly mainte-nance fee are based on the size ofthe residence selected. Entrancefees at Shell Point start as low as$93,000.

If care is ever needed, there areno elimination periods, nor isthere any limit to the duration ofthe care that may be needed. Withsimply stated fees, one is able tocarefully chart one’s economicfuture, with assurances that deci-sions made today will secure thedesired results tomorrow.

During the early retired yearsof autonomy and high energy, theon-site Shell Point medical staffstrive to optimize quality of life foreach resident, offering personal-

ized attention to issues ofhealth, wellness, illness,and fitness. Should long-term care ever emerge inone’s experience, however,

personally trained on-site socialworkers are present and ready toassist individuals and families asthey manage life’s inevitable tran-sitions. When caring professionalsare needed, they are there!

What has emerged in my per-ception as one of the strongestbenefits of lifecare at Shell Point, isthe fact that quality care is avail-able at both the assisted living andskilled nursing level all day, everyday, in perpetuity. If the need forcare emerges, there is no questionas to whether care will be avail-able or how much it will cost.

Lifecare at Shell PointRetirement Community offers theultimate security.

When is the best time to select adentist? When your teeth are infairly good condition and youwant to maintain them, or whenyou have an excruciatingtoothache? The need for long-term skilled nursing care is gener-ally instigated with a health crisisof some kind. Stroke, heart attack,or any other number of diseasescan strike without warning andcause the need for immediate 24-hour care. Diseases that progressgradually, such as Alzheimer’s orParkinson’s, may also lead to theneed for care and, while the onsetmay have been gradual, the deci-sion to seek long-term care is oftenaccompanied by a crisis of some

kind. Even a planned surgerysuch as a hip or knee replacementcan require follow up long-termskilled nursing care.

When a person buys long-termcare insurance, they figure theworst is over. They may feel thatthey have faced the future anddealt with whatever might bearound the corner, and now theycan sit back and relax. Thatis not altogether true.

With long-term careinsurance, you havearranged to have a certainamount of care paid for on anannual basis, in the event of amedical crisis requiring long-termcare. However, there are manydecisions that have not beenmade. Where will you go toreceive this care? What if there isno facility nearby? What if yourlong-term care policy has restric-tions that you were not aware of,such as elimination periods, ceil-ings on the amount of coverageper day, and other factors thatcould create a problem when thetime comes to use the coverage?All of these issues need to be iden-tified and carefully consideredwhen evaluating such a purchase,rather than waiting until the timeof crisis.

Who Decides?For some, help during a crisis

may come through the assistanceof a nearby family member orfriend, but some people do notwant to be a burden to their lovedones and refuse to ask for helpfrom their children or friends. Thisis to be expected and should bedealt with prior to any crisis toavoid the necessity of having toseek outside assistance when itcomes to making such personaldecisions. Perhaps you are relyingon a spouse to be able to handlethe many details involved in notonly finding a suitable facility andlocation, but also in seeing to itthat the facility will offer propercare at suitable standards. Ofcourse, usually during a crisis, thespouse may also be experiencingfeelings of anxiety, guilt, sadness,or fear that make decision-makingdifficult and a burden.

When you purchase lifecare atShell Point, you are making morethan just a financial decision. Youare deciding now, while you arehealthy, where and how you willreceive future care. You are mak-

ing your own decisions aboutyour own future. In the event of acrisis, you will not need to makeany emergency decisions aboutskilled nursing care because youhave already taken care of that“what if.”

One of the underlying factors

to consider when making thedecision between long-term careinsurance versus lifecare is theactual care. Where will the carebe available? Will there be roomavailable for me? Will it beavailable when I need it? Will itbe nearby so my spouse andfriends can visit? What stan-dards will be in place to ensurethat I receive quality care? Can Icount on the staff to whom Ihave trusted my loved one? Willhe or she be treated in a mannerto which they are accustomed?If I am no longer able to drive,will we become isolated fromeach other?

By purchasing lifecare at ShellPoint, all of those questions areanswered and you no longerneed worry about those details.With long-term care insurance,there is the guarantee of someform of payment, but there is noplan in place as to where youwill go or what type of facilityyou may have to move into.Don’t leave these matters unde-cided. If you are thoughtfullyplanning for the future, thenmake all of these decisions now,while you are in charge of yourown future.

Why I Am ConvincedI hope I have given you some-

thing to think about today andthat I have provided a clear expla-nation of the pros and cons ofthese two products. But there isone more point I would like tomake about lifecare at Shell Point.

I believed so strongly in thevalidity of this product and in itseffectiveness for securing thefuture, that I recommended it tomy parents when they retired.They moved to Shell Point in 1986and enjoyed the community forseveral years before my father

unexpectedly passedaway. I was comfortedby the knowledge thatmy mother was ingood hands, and evenmore so, when shed e v e l o p e dAlzheimer’s later on.

My mother receivedwonderful care atShell Point and I real-ized firsthand that thiswas the wisest deci-sion my parents evermade. My wife and Iare already planningfor our future at ShellPoint when we retiresome day.

Cost, Crisis & Care

The Cost

The Crisis

The Care

A Comparison of Long

Term Care Insurance

vs. Lifecare