winning in the second half of life 157060ltc 08/20/13
TRANSCRIPT
Winning in the Second Half of Life157060LTC 08/20/13
“Setting a goal is not the main thing. It is
deciding how you will go about achieving it
and staying with that plan.”– TOM LANDRY
Dallas Cowboys coach, 1960-1988
“Planning is bringing the future into the present so that you can do something about it now.”
– ALAN LAKEIN
What does it take to win in the second half of your life?
5Winning in the Second Half of Life
When you think about your financial security during retirement, which of the following is most important to you?
Your priorities
Having enough income to sustain my lifestyle in the future
Handling unexpected medical expenses
Protecting my family against the financial impact of a long term care event
6Winning in the Second Half of Life
A common challenge
• Do you know anyone who needed long term care?
• Do you believe it could happen to you?
Extended care/long term care
Winning in the Second Half of Life
7Winning in the Second Half of Life
People are living longerAverage life expectancies continue to increase
Roman Empire Middle Ages 1900 1950 2013 (U.S.)
2233
4768 79
Source: Geobase: The World Life Expectancy (2013) – top 100+. Accessed 08/20/13http://www.geoba.se/population.php?pc=world&type=015&year=2013&st=rank&asde=&page=1
8Winning in the Second Half of Life
Who will take care of me and where do I want to receive care?
How will the care be paid for?
What impact will this have on my family and our finances?
The reality of living longer
Living a long life is more of a reality today.
Living longer is not always synonymous with living better.
Living longer may mean we need long term care.
Preparing for a long life is a necessity.
The longer we live, the more likely it is that we may need someone to help take care of us.
Planning for long term care
10Winning in the Second Half of Life
What is long term care?
• Because you are not able to do some of the basic Activities of Daily Living (ADL).
• And/or because of Accidents Chronic illness Aging Strokes A severe cognitive impairment,
such as dementia, Alzheimer’s disease or brain injury
Other chronic conditions
Defined as the assistance or supervision you may need
Long term care can be received at home, in the community or in a nursing home or assisted living facility.
Assisted living facilities (referred to as Residential Care Facilities in California)
Winning in the Second Half of Life
YEARS
Average life expectancy after Alzheimer’s disease diagnosis after age 65.3
4-8
1 Medicare & You, National Medicare Handbook, Centers for Medicare and Medicaid Services, Revised November 20122 Claims data for Genworth Life Insurance Company and affiliates – December 1974 - December 31, 20123 Source: 2012 Alzheimer’s Disease Facts and Figures, Alzheimer's Association, March 2012
11
Long term care is a reality
OF PEOPLE
70%People over 65 will need long term care services.1
3.9YEARS
Average length of long term care claim lasting longer than one year.2
AT LEAST
12Winning in the Second Half of Life
In-Home Care Assisted Living Nursing Home$0
$50,000
$100,000
$150,000
$200,000
$250,000
$44,479 $41,400$83,950
$112,396 $104,615
$212,138
This year In 20 years
Assisted living facilities (referred to as Residential Care Facilities in California)Source: Genworth 2013 Cost of Care Survey, conducted by CareScout, ® April 2013. Based on national median costs.*Estimates how much care might cost based on 5% annual growth rate.
And it’s getting more expensiveAnnual median cost of care in the United States for this year and in 20 years.*
(44 hours/week, licensed home health aid)
(private room)
z
13Winning in the Second Half of Life
Cost of Care Survey
Source: Genworth 2013 Cost of Care Survey, conducted by CareScout, ® April 2013. Based on national median costs.
14Winning in the Second Half of Life
Source: Genworth 2013 Cost of Care Survey, conducted by CareScout, ® April 2013. Based on national median costs.
Home CareHow much it costs depends on your location
15Winning in the Second Half of Life
Assisted living facilities (referred to as Residential Care Facilities in California)Source: Genworth 2013 Cost of Care Survey, conducted by CareScout, ® April 2013. Based on national median costs.
Assisted LivingHow much it costs depends on your location
Private Room
16Winning in the Second Half of Life
Source: Genworth 2013 Cost of Care Survey, conducted by CareScout, ® April 2013. Based on national median costs.
Nursing HomeHow much it costs depends on your location
Private Room
17Winning in the Second Half of Life
A challenge many of us shareAt least 70% of people over 65 will need long term care services at some point.1
Many believe it won’t happen to them and say if it does:
1 Medicare & You, National Medicare Handbook, Centers for Medicare and Medicaid Services, Revised November 2012
18Winning in the Second Half of Life
Managed Money
Money Market
BondsProperty
Stocks
Life In-surance & Annu-
ities
Mutual Funds
LTC?
How would you pay for long term care?
Winning in the Second Half of Life
19Winning in the Second Half of Life
*Medicaid is referred to as Medi-Cal in California
Long term care funding options
Private/Family Support
Public Programs Self Funding
Family members or friends may provide care
Medicare and Medicaid* programs
Set aside money from a retirement strategy
20Winning in the Second Half of Life
*An optional rider that can be added to some life insurance policies.
Long term care funding options
Traditional Long Term Care Insurance
Accelerated Benefit Rider for Long Term Care Services*
Linked Benefits Solution
Specifically designed to pay for long term care
Can provide tax-free reimbursement for covered long term care services
Combine benefits of life insurance and long term care insurance
21Winning in the Second Half of Life
Planning now can help you win in the second half
1
2
What’s your written strategy?
How will the costs of extended care impact your portfolio and your family?
Winning in the Second Half of Life
22Winning in the Second Half of Life
Have the conversation
23Winning in the Second Half of Life
Begin your written plan today
• Do it for yourself…
• And do it for your family
• Help protect your retirement portfolio and assets
• Help protect your family’s goals
Genworth, its affiliates and representatives, do not provide tax advice. You should consult a legal and/or tax professional for information relating to your particular situation.
Insurance and annuity products
• Are not deposits.• May decrease in value.
• Are not insured by the FDIC or any other federal government agency.• Are not guaranteed by a bank or its affiliates.
©2013 Genworth Financial, Inc. All rights reserved.
Insurance product is based on the claims-paying ability of the issuing insurance company.