EMPLOYER SPONSORED LONG TERM CARE INSURANCE

Your World Class Employer Name Here!

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What is Long-Term Care?

• It is the day-to-day help you need when an injury, illness, or cognitive impairment makes you unable to take care of yourself.

• Specifically, it is help in performing some or all of the six activities of daily living (ADL): eating, bathing, dressing, transferring, continence, or

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using a Toilet; or the instrumental activities of daily living (IADL): including using the telephone, shopping for essentials, laundry, light housekeeping

• Care can take place in your home, an assisted living facility, residential care facility, adult day care, or a nursing home.

• Assistance can range from help with grocery shopping and cooking to skilled round-the-clock nursing care.

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Will You Need Long-Term Care?

Most but not all persons in need of long term care are elderly.

• Approximately 63% are persons aged 65 and older (6.3 million)

• The remaining 37% are 64 years of age and younger

(3.7 million).

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Rogers, S., & H. Komisar. Who needs long-term care? Fact Sheet, Long-Term Care Financing Project. Washington, DC: Georgetown University Press, 2003.

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Contributing Factors to Increased Need for Long-Term Care

• People living longer lives • Advances in science and medicine• Managed care impact on shortened hospital

stays• Family members unable to care for relatives

• Geographic separation• “Sandwich generation”• Two-career families

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Why LTC Insurance for Your Business?• One of the newest employee benefits being used to attract and retain top-talent• Awareness and interest in LTC is increasing:

• Media attention• LTC Awareness programs• Baby boomers seeing parents needing help• Facing their own futures

• Employers can have a positive effect on employees in planning for their future needs

• Help diminish the negative effects of care giving• Protect corporate sponsored retirement benefits

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Impact on Employer & Employee• Result of care-giving:

• Businesses lose up to $33 billion annually1

• Absenteeism• Decline in productivity• Interruptions (emergencies and calls)• Decreased morale and motivation• Unwillingness to travel & inability to relocate

• Employees are physically, emotionally, & financially drained• 30% of employees with parent age 65+ miss work2

• 31% quit work3

• Impacts retirement & educational saving• Can place career limits during “key wage earning” years1

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1Caregiving in the U.S.: Findings from the National Caregiver Survey." National Care giving Alliance and AARP. May 2005. http://www.caregiving.org/pubs/data.htm

2/3The State of Aging and Health in America 2004. For Agent Use

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The Solution

Employer Sponsored Long-Term Care Insurance

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Tax Benefits• Premiums paid for employees and dependents are 100%

deductible for:• C Corporations• S Corporations • Partnerships • LLCs • Sole proprietors

• Premiums paid for owners may be deductible based on company structure (as above).

• All benefits paid from qualified long-term care insurance policies are received tax-free.

* We cannot give legal, tax, or accounting advice. Please consult with your own tax advisors and advise clients to do the same!

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Corporate Participation Alternatives

“Section 105 Medical Reimbursement Plan”

Allows the creation of corporate sponsored benefits by class, length of service, occupation and income

The company may select different levels of benefits for more than one class of employees.

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Administration

Management

Length of service

Income

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• Retirement security benefits provided by corporate sponsored long term care insurance enhances:• Senior employee confidence• Corporate morale, and• Creates a real sense of Financial Well-Being both

now and in the future

Rewarding your most important Employees with much needed Risk Protection and Peace of Mind is simply Good Business!

Even moderate Employee benefits chosen at the Employers discretion can dramatically reduce underwriting and increase available protection.

Where do you draw the line?

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Benefits and discounts vary from company to company.

Premium Discounts – 5 to 10%

Marital Discounts – 15 to 30%

Simplified Underwriting – Ranges from simplified issue to guarantee issue. (Depends on corporation’s level of participation.)

*Spouses may also receive simplified underwriting.

Employer Sponsored Program Highlights

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Metrics for decision to offer Long-Term Care Insurance

• For an average cost of $36 per month/per employee you can provide them with a comprehensive Long Term Care benefit representing $109,500 of retirement income and/or early total disability protection. – 3 Year Benefit Period– $100 Daily Benefit– 90 Day Elimination Period

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*Average premiums could be less with a smaller employer sponsored core benefit.*Average premiums may be higher with an employer sponsored carve-out benefit.

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As part of the package…

• The employee will have the ability to buy-up from this core benefit .

• The employee may add their spouse to the plan at their own expense.

• Spouses will also receive the discount.

• If the employee leaves they can take the policy and keep the discount.

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Let’s put this into perspective.

• $36 per month, which is 100% tax deductible, represents an average of 1% of each employee’s base salary.

• The premium on long-term care insurance doesn’t go up every year which means that your cost as a percentage of payroll goes down each year.

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For approximately 1% of your overall employee payroll costs you can:

• Enroll your employees in a retirement protection plan.

• Provide your employees with $109,500 of tax-free coverage against an early onset long-term care claim or serious disability.

• They can purchase more benefits on themselves on a discounted basis.

• They can purchase coverage on their spouses on a discounted basis.

• Take their policies with them because they are fully portable.

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1%

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Your cost was gathered from 7 highly rated insurance companies

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GenworthGreat American John HancockMedAmerica

MetLife Prudential

TransamericaFor Agent Use

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The decision is yours.

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Employer Sponsored Long Term

Care Insurance

Benefit

Basic Benefit for

All Employees

Voluntary Paid

Employee Benefit

Executive Carve-Out

America’s Long Term Care Insurance Experts will help you choose the company that fits with your decision.

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