Voluntary Group Long Term Care
Insurance Program
Employee Presentation for Enrollment Period June 12 to July 21, 2017
June 2017
Underwritten by Genworth Life Insurance Company.
©2015 Genworth Financial, Inc. All rights reserved.
45145VCA 05/07/15
Today’s topics
•
An introduction to Long Term Care Insurance (LTCI)
Three Key Decisions
Additional Benefits & Eligibility
Summary & Next Steps
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2
Why purchase LTCI?
•
Protect Savings
Helps protect the money you’ve
been saving for retirement,
education, etc.
•
Maintain Choice & Control
Helps keep your options open
about how you receive care.
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•
Protect Family
Helps protect your family and
friends from the effects of
caregiving.
•
Stay At Home
Helps reimburse expenses to
make home modifications and
receive home care where you’re
most comfortable.
3
Myths & realities
“It won’t happen to me.”
7 out of 10 people over 65 will need
long term care services and support
at some point in their lives.*
“My insurance will cover me.”
Neither disability income nor health
insurance are designed to cover
long term care expenses.
“The government will pay for the
care I need.”
“I can pay for this out of my savings.”
Medicare & Medi-Cal
benefits are very limited and
you may not qualify.
It can take years to accumulate an
amount equal to the insurance
coverage you could have today.
* 2015 Medicare & You National Medicare Handbook, Center for Medicare and Medicaid Services, Revised September 2014.
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Can you pay for LTC out of your savings?
Example: A 50-year old invests $110.03 per month @ 5% to age 80
This monthly investment is equal to premiums for a 50-year old with $6,000 Monthly Benefit, and
$216,000 Total Coverage and the Buy More Coverage Over Time/Future Purchase Option (FPO). It
assumes no FPO elections are exercised and no premium increases occur.
$280,000
$240,000
$200,000
$160,000
$120,000
$80,000
$40,000
$0
Total Coverage
Available TODAY
2016 cost for a year in
California for a private
room in a Nursing
Facility
$216,000
$92,559
$112,055
All references to cost of care
are based on Genworth’s 2016
Cost of Care Survey,
conducted by CareScout
04/2016
Available @ Age 80
Invest $110.03 @ 5%
LTCI Benefit
You may not be able to save enough to pay for the care you need.
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More myths & realities
“I can rely on my family & friends.”
“Long term care insurance is
too expensive.”
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Caregiving is difficult
and requires significant physical
and emotional commitment
You can customize a plan
to fit your needs
and your budget
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Premiums vary by age and coverage options
Purchase
Age
Initial Cost
Per Month
Age 55
$73
Age 60
$98
Age 65
$145
Premiums vary by age.
Coverage for a 50-year old
under this insurance program
can be as low as $49 per month
– little more than a dollar a day.
This displays example premiums for a $3,000 Monthly Benefit, and $72,000 Total Coverage and the FPO
Benefit Increase Option at a variety of ages. It assumes no FPO elections are exercised and no premium
increases occur. Actual premiums depend on the age, plan design and options selected. Premiums are not
guaranteed, but this example assumes they do not change over the life of the policy.
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How do you qualify for benefits?
Need for care may arise from:
Bathing
Continence
Dressing
Toileting
Eating
Transferring
•
Injuries caused by accidents
•
Illnesses like Multiple Sclerosis
•
Diseases like Alzheimer's or Parkinson’s
•
Strokes or other chronic conditions
If you…
• Need help with at least 2 of the 6 Activities of Daily Living (ADLs), and help is expected to last
at least 90 days.
• Have a severe cognitive impairment that requires substantial supervision.
When you need long term care, the elimination period is the time period during which you must
pay for your own care without being reimbursed under the policy.
LTCI can help reimburse the cost of covered services
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How does LTCI work?
•
Home & Community Care
• Adult Day Care
• Nurse and Therapist Services
• Home Health Care
• Homemaker Services
Total Living Coverage
LTCI provides a pool of
benefits that can reimburse
long term care services when
• Personal Care Services
•
Residential Care Facility
Allows you to live independently with
on-site support for daily basics
and where needed
•
Nursing Facility Care
Provides more skilled care, supervision,
medication, therapies and rehabilitation
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Three Key Decisions
Basic choices to customize your plan
The examples that follow reflect plan design options and premiums available to your group. Your actual premiums will depend on
your age and the plan design you choose. Examples assume no premium increases occur, except as anticipated with
acceptances of the FPO Benefit Increase Option.
All cost of care information shown is based on Genworth’s 2016 Cost of Care Survey, conducted by CareScout 4/2016.
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Three Key Decisions
Monthly Benefit
Amount
1
$1,500
$3.000
$4,500
$6,000
Monthly Benefit Amount
$7,500
Total Coverage
Maximum
2
2
Total Coverage Maximum
$36,000
$72,000
$54,000
$108,000 $162,000 $216.000 $270,000
3
$108,000 $144,000 $180,000
Benefit Increase
Option
Benefit Increase Option
Buy More Coverage Over Time
Automatic 3% Compound for Life
Automatic 5% Compound for Life
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Three Key Decisions
1
1
$1,500
Cover the monthly cost of care in
the area where you might retire
Monthly Benefit
Amount
• 100% for nursing home & residential care
$3.000
$4,500
$6,000
• 100% for home & community care
$7,500
Total Coverage
Maximum
2
$36,000
$72,000
$54,000
$108,000 $162,000 $216.000 $270,000
3
2
$108,000 $144,000 $180,000
Benefit Increase
Option
Buy More Coverage Over Time
Automatic 3% Compound for Life
Automatic 5% Compound for Life
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bsca
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Step 1: Choose a Monthly Benefit
Select a Monthly Benefit to cover the monthly cost of care in your area
Annual Cost of Care
Home Care Median Annual Rate
Oregon
$52,624
California
$54,912
Colorado
$54,912
New York
$52,624
Illinois
$50,336
Florida
$45,188
Texas
$43,472
Low
(up to $3,600/month)
Average
(up to $4,200/month)
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High
(over $4,500/month)
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Step 1: Choose a Monthly Benefit
Select a monthly benefit to cover the monthly cost of care in your area
National Median Annual Rate
Home Health Aide
$47,000year
Adult Day Care
$18,000/year
Assisted Living Facility
$44,000/year
Nursing Home Private Room
$92,000/year
Semi Private Room
$82,000year
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Three Key Decisions
1
11
$1,500
Cover the monthly cost of care in
the area where you might retire
Monthly Benefit
Amount
$3.000
$4,500
$6,000
• 100% for home & community care
$7,500
Total Coverage
Maximum
$36,000
$72,000
$54,000
$108,000 $162,000 $216.000 $270,000
3
• 100% for nursing home & residential care
2
$108,000 $144,000 $180,000
Have enough coverage to
last ~3 years
Benefit Increase
Option
Buy More Coverage Over Time
Automatic 3% Compound for Life
Automatic 5% Compound for Life
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Step 2: Choose your total coverage
Select a Total Coverage Maximum that will cover ~3 years of care
Cost for
1 Year of Care
Residential Care
Facility
x
Years
of Care
=
Target
Total Coverage
Maximum
$144,000
$48,000
(A private room)
Home Health Care
(44 hours with a licensed
home health aide @ $23
per hour)
Nursing Home
(A semi-private room)
$54,912
x3
$273,750
$91,250
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$164,736
16
Three Key Decisions
1
11
$1,500
Cover the monthly cost of care in
the area where you might retire
Monthly Benefit
Amount
$3.000
$4,500
$6,000
• 100% for home & community care
$7,500
Total Coverage
Maximum
$36,000
$72,000
$54,000
$108,000 $162,000 $216.000 $270,000
3
• 100% for nursing home & residential care
2
$108,000 $144,000 $180,000
Have enough coverage to
last ~3 years
Benefit Increase
Option
Buy More Coverage Over Time
Automatic 3% Compound for Life
Automatic 5% Compound for Life
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Keep up with the
cost of care in the future
Step 3: Choose a benefit increase option
Select an option to help your coverage keep up with inflation
Projected cost for 3 years of care for a 50-year old
Assumes cost of care increases by 3% until age 80
700,000
600,000
500,000
400,000
3 Years of Care Today
300,000
In 30 Years
200,000
100,000
0
Residential Care Facility
Home Health Care (44
hours/week)
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Nursing Facility
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Step 3: Choose a benefit increase option
Select an option to help your coverage keep up with inflation
5% Compound
Automatic Increase for Life
• Available for an additional premium.
• Premiums stay level but costs most at issue
3% Compound
Automatic Increase for Life
• Available for an additional premium.
• Premiums stay level but costs more than FPO at issue
Buy More Coverage Over Time (FPO)
• Coverage can increase every 3 years
• Built into each plan. Costs less at issue but increases with each additional purchase
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Additional benefits
Available with your insurance program
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Additional benefits included in your plan
Waiver of Premium
Waives premiums if you are receiving care in a facility or at home. It also waives premiums while
bed reservation & hospice benefits are being paid.
Bed Reservation
Reimburses charges to reserve your accommodations in a nursing or residential care facility while
you are away for any reason.
Hospice Care
Reimburses charges up to the applicable Monthly Benefit.
International Coverage
Reimburses covered nursing facility care services received outside the United States.
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Additional benefits included in your plan
That may help you stay at home
Respite Care
Reimburses charges up to the applicable Monthly Benefit to give an unpaid caregiver short term
relief.
Home Assistance
Reimburses up to 3 times the Monthly Benefit Amount for home modifications, support equipment
and caregiver training.
Informal Family Care
Reimburses cost of services provided by a friend or family member
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Eligibility
You and your family are eligible to apply
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Who is eligible to apply?
To be eligible, each applicant must maintain a permanent U.S. residence,
and have a valid Social Security Number or Tax Identification Number from
the U.S. government.
•
Actively at work, benefit-based employees working 20+ hours per week
•
Your Spouse or Domestic Partner under age 76
•
Your Parents and Parents-in-law under age 76
•
Your Grandparents and Grandparents-in-law under age 76
•
Your Adult Children under age 76
•
Your Siblings under age 76
Each person must apply separately.
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Enrollment medical underwriting
Applicant
Application
Eligible Benefit Based Employees and New Hires
up to and including age 65 during initial enrollment/new
hire period
Modified Guarantee Issue Comprehensive (MGIC)
• 2 question form
• Height / weight parameters
• Pre-Existing Conditions Limitation applies*
Eligible Benefit Based Employees and New Hires
over age 65 during initial enrollment/new hire period
Long Form
• Medical records are requested
• Full medical underwriting, which may include:
- Paramedical exam
- Functional/Cognitive Assessment
- Phone Health Interview
All Other Applicants
ages 18-75
•
Pre-Existing Conditions Limitation: We will not pay for Covered Expenses incurred for any care or confinement that is a result of a Pre-Existing
Condition when the care or Confinement begins within six (6) months following Your initial Certificate Effective Date. A Pre-Existing Condition means a
condition for which medical advice or treatment was recommended by, or received from, a provider of health care services within six (6) months prior to
Your initial Certificate Effective Date.
•
Leave of Absence (LOA) Individuals on LOA will have one year from the effective date of the master policy, in which they must return to work, to be
able to apply under a reduced underwriting offer. More specifically, if the effective date of the master policy is 8/1/17, the individual will have until
8/1/18 to return to work. They will then need to meet the requirement of being actively-at-work for 30 days (or 60 days if required by the employer)
before applying for coverage. After one year, the individual will need to complete a long form application.
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Summary & next steps
Program advantages & how to apply
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Why act now?
If you postpone the decision to buy…
• Underwriting requirements may
change.
• You may not qualify due to future
health issues.
• Your premiums will be established
at your older age & higher rate.
Buy Today
(Age 50)
$73
Wait 10
Years
$147
EXAMPLE BASED ON
$4,500 Monthly Benefit
$108,000 Total Coverage Maximum
FPO Benefit Increase
This example is case specific and presents one of the
plan designs available. It assumes no FPO elections
are exercised and no premium increases occur.
Additional options are available at different costs.
Premiums are not guaranteed, but this example
assumes they do not change over the life of the policy.
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Wait 20
Years
$341
Wait 30
Years
$948
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Key advantages of this insurance program
• Spouses and other family members 18-75 can also apply with these customized
group rates & underwriting
• A 30 day free look is available
• Care coordination and other additional benefits are included at no additional cost
• Coverage is portable - you can take it with you if you leave your job or retire
• Flexible choices to match your needs and your budget
• Easy enrollment by web or paper
Available Billing Options
• Direct bill on quarterly, semi-annual or annual basis or monthly electronic funds
transfer
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Three Key Decisions
Monthly Benefit
Amount
1
Total Coverage
Maximum
2
Benefit Increase
Option
3
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Next steps
Take advantage of this opportunity for reduced underwriting during
the enrollment period / Review your coverage options now:
June 12 – July 21, 2017
Apply Online
Call Customer Service
www.genworth.com/caltech
www.genworth.com/jpl
1 (800) 266-4938
OR
Talk to your spouse/partner, parents, parents-in-law, and grandparents
about this insurance program. They are also eligible to apply up to age 76.
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Details you should know
• There is no Return of Premium if you don’t use the benefits.
• Rates are designed and priced for long term stability, however they could increase.
• There is an elimination or waiting period.
• Care not covered includes:
–
Care by an Immediate Family Member (unless covered by the Informal Family Care Benefit
or other benefit under the Group Policy)
–
Care when no charge is made in the absence of insurance
–
Care by a Veteran’s Administration or federal government facility, unless a valid charge is
made
–
Care outside the USA, its territories or possessions (unless covered by the International
Coverage Benefit)
–
Provided for your alcoholism or addiction to drugs or narcotics (except for an addiction to a
prescription medication when administered in accordance with the advice of a Physician).
–
Care that results from: war, act of war; participation in a felony, riot or insurrection;
attempted suicide, or intentional self-inflicted injury
–
Care for which you receive or are eligible to receive benefits under worker’s compensation,
an occupational disease act, or similar acts or laws.
View important details in the Outline of Coverage
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Other limitations
Non-Duplication of Medicare Benefits:
The program reimburses covered expenses that exceed what Medicare or other
governmental health care programs (other than Medi-Cal or Medicaid) pay.
Deductibles and co-insurance under Medicare are not covered by this long term care
insurance .
Coordination of Benefits:
The program coordinates its benefits with all other long term care insurance coverage
that you have.
Pre-existing Conditions Limitation:
The program includes a Pre-Existing Conditions Limitation.
View important details in the Outline of Coverage at www.genworth.com/groupltc
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Additional disclosures
• This insurance program is underwritten by Genworth Life Insurance Company with
Administrative Offices in St. Paul, MN.
• Insurance is provided under a group policy issued to Caltech using policy forms
7053POL-CA and 7053CRT-CA.
• Coverage is intended to be tax qualified under IRS code 7702(B).
• State variations may apply. Refer to your Outline of Coverage for coverage
definitions, benefits, features, exclusions and limitations.
• This material is part of a solicitation for Group Long Term Care Insurance.
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