Extended Care

Extended Care refers to

Short Term Care, Long Term Care Fundamental, or Long Term Care Fundamental Plus products that Bankers Life Offers

Of people turning 65 this year, what percentage will use some type of extended medical care in their lifetime?

70%

ADL'S

• Eating

• Bathing

• Dressing

• Transferring

• Toileting

• Continence

Options for covering Extended Care needs: Health Insurance

Covers hospital stays and doctor visits, but not extended Care or care needed after recovery.

Options for covering Extended Care needs: Disability Insurance

Replaces income lost due to disability, but never pays directly for extended Care.

Options for covering Extended Care needs: Medicare

Pays for skilled nursing care only - may not include bathing or feeding. Requires deductibles after 20th day, and after 100th day there is normally no coverage

Options for covering Extended Care needs: Medicaid

Pays in limited circumstances- may not qualify if income exceeds limits.

Options for covering Extended Care needs: Self Insuring

Requires person to pay their own income, savings or assets that are needed for quality of life.

Options for covering Extended Care needs: Extended Care (winner)

Specifically designed to cover short or long term care needs.

Target Audience for Extended Care Products

• Parents or Grandparentswho dont want to become a financial burden on their families

• Individuals aged 40-79 with coverage whose need for nursing home and home health care protection is not being fulfilled by current coverage

What age range is eligible for coverage?

18-84

Eligibility questions that disqualify a prospect if they answer “yes”

• Do you authorize any person to legally act on your behalf?

• Have you received any service covered by the policy in the last two years?

• Have you seen a medical worker for a major illness in the past 3 years?

Three factors of a policy payment cost

• Maximum daily/monthly benefit amount

• Elimination period

• Benefit multiplier (# of days covered)

Short Term Care (STC) provides

Protection designed specifically for needs lasting less than one year.

Benefit of a short term policy

Lower premiums

Bankers Life offers two short term products:

• Facility Only (GR-N560)

• Facility and Home Based (GR-N565)

Facility and Home (GR-N565) covers;

• Facility Care

• Home Care

• Hospice Care

• Bed Reservations

• Restoration of Benefits

• Adult Day Care

• Guaranteed Renewability

Facility Only (GR-N560) only covers

• Facility Care

• Bed Reservations

• Restoration of Benefits

• Guaranteed Renewability

Is Inflation Protection offered on either Short Term Care plan?

It is optional for a cost

Facility Care pays for which facilities?

• Nursing homes

• Assisted living facilities

• Alzheimer's facilities

• Residential Healthcare facilities

Home care benefit pays for

• Home Care Aides

• Physical, occupational and speech therapists

• Nutritional specialists

• Medical social workers

• Transportation for appointments

• Cleaning and laundry services

• Food shopping, prep and clean up

• Medical equipment rentals up to purchase price

Hospice care benefit is earned when

• Insured's doctor certifies there is a life expectancy of 6 months or less with no reasonable prospect of cure

• Insured needs services for pallation or management of a terminal illness and related condition

• Insured's condition would need fo be treated in a hospital or nursing home if hospice care was not available

Maximum Daily Benefit Amount

Maximum range $50 to $300 per day

Elimination Period

0, 15, or 30 days

Benefit Multiplier

90, 180, 270 or 360 days

Long Term Care Fundamental is designed to provide

Care for not more than twelve consecutive months

Long term care Fundamental Plus are

Expense reimbursement and pool of benefits policies designed to provide care for up to two years

Benefits of LTC fundamental Plus benefitd

• Tax qualified- allows client ti receive tax advantages such as deducting premiums as an expense and receiving tax free LTC benefits

• Return of premium upon death indemnity rider - pays sum of premiums minus any claims if insured dies after specified period

• Non forfeiture benefit rider - insured is eligible for reduced paid up benefit if their policy lapses for non payment of premoum after 3 years

Return of premium upon death indemnity rider

This rider pays a benefit upon death equal to the sum of collected premiums, adjusted for policy duration and issue age according to the table, minus any claims paid. For ages 70+ payout is limited to sum of premiums collected during first 10 years.

Elimination period for LTC plus

0,15,30,90,180,270,360,365, and 730

Benefit multiplier for LTC plus

90,180,270,365,540,730