Long Term Care is a Family Affair

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Long term care insurance underwritten by Genworth Life Insurance Company

37678 01/17/06

A Presentation on Long Term Care Planning

© 2006 Genworth Financial, Inc. All rights reserved.

We are better off today than we’ve ever been.

1National Center for Health Statistics. Health, United States, 2004. With Chartbook on Trends in the Health of Americans.

Through research, medical advances and technology we have more control over the quality and longevity of our lives.

100 years ago the average life expectancy in the U.S. was 47 years. The average has increased to 77.1

Consider…

• If you had all of the time in the world

– how would you want to spend it?

• Enjoying your hobbies?

• Spending time with your family?

• Volunteering?

Unfortunately, when we live a long life, we may get sick.

We’re fortunate that we may live a long life.

Living a long life is more of a reality today.

Planning for that long life is a necessity.

Long term care is not only about you.

It’s about you and your family.

Four types of people:

“There are only four kinds of people in the world:

those who have been caregivers;

those who are currently caregivers;

those who will be caregivers;

and those who will need caregivers.”

Former First LadyRosalynn Carter

Excerpt from “Helping Yourself Help Others: A Book for Caregivers” with Susan K. Golant

What is long term care?

• Long term care can be broadly defined as care provided by another party for the benefit of those who are unable to care for themselves.

• It is usually provided for an extended period of time.

Long term care is personal care assistance.

Where is long term care delivered?

• Where you need it.

• Not just in nursing homes.

• Often in your own home.

Don’t forget…Long term care is not just about you -- it’s about you and your family.

What does long term care cost?

Source: 2005 Genworth Financial Cost of Care Survey. Conducted by CareScout, an independent research organization. 5/2005. Survey results are available from the company or one of our representatives.

• The national average costs are:– Home Care Providers

• Certified Home Health Aides: $18.54 per hour• Non-certified Homemaker services: $16.82 per hour

– Assisted Living Facilities• Private one-bedroom unit: $2,500 per month or $30,300 per year• Some charge a one-time community or entrance fee

– Range between $75 and $8,000– National average of $1,500

– Nursing Homes• Private room: $69,400• Semi-private room: $61,000• Urban areas are 12% greater than non-urban areas, on average

Funding options:

Your FamilyOut of love and necessity, families help.

The GovernmentMedicare and Medicaid generally limit your long term care options.

Self-Insure / Your Personal SavingsJeopardize your goals and may be costly.

Long Term Care InsuranceTransfers some of the risk away from you. May prevent invasion of principal.

Funding options:

Your FamilyOut of love and necessity, families help.

The GovernmentMedicare and Medicaid generally limit your long term care options.

Self-Insure / Your Personal SavingsJeopardize your goals and may be costly.

Long Term Care InsuranceTransfers some of the risk away from you. May prevent invasion of principal.

Funding options:

Your FamilyOut of love and necessity, families help.

The GovernmentMedicare and Medicaid generally limit your long term care options.

Self-Insure / Your Personal SavingsJeopardize your goals and may be costly.

Long Term Care InsuranceTransfers some of the risk away from you. May prevent invasion of principal.

• Medicaid does cover long term care services

• May limit your options

• Requires qualification based on need– Level of need is determined by the State

Funding options:

Medicaid may put your financial assets at risk.

Funding options:

Your FamilyOut of love and necessity, families help.

The GovernmentMedicare and Medicaid generally limit your long term care options.

Self-Insure / Your Personal SavingsJeopardize your goals and may be costly.

Long Term Care InsuranceTransfers some of the risk away from you. May prevent invasion of principal.

$01st Year 2nd 3rd 4th 5th

Potential impact of long term care andspouse expenses during a 3-year stay on a $500,000 portfolio

FOR ILLUSTRATIVE PURPOSES ONLY. Assumptions: $500,000 savings earning 5% net of expenses, current Long Term Care costs $69,400 per year in Private Room in a nursing home according to a Genworth Financial 2005 Cost of Care Survey conducted by CareScout, an independent research company, 05/05, with 5% simple inflation increase annually, spouse requires $42,850 annual withdrawal w/a 5% simple inflation increase each year. All earnings and withdrawals occur at the beginning of each year. Does not take into account any other additions or subtractions that may occur with this account.

$500,000

$412,750

$315,525

$500,000

$250,000

Funding options:

Your FamilyOut of love and necessity, families help.

The GovernmentMedicare and Medicaid generally limit your long term care options.

Self-Insure / Your Personal SavingsJeopardize your goals and may be costly.

Long Term Care InsuranceTransfers some of the risk away from you. May prevent invasion of principal.

Interest on Savings

FOR ILLUSTRATIVE PURPOSES ONLY. Assumptions: $500,000 savings earning 5% net of expenses, current Long Term Care insurance premium of $2,000 Does not take into account any other additions or deductions that may occur from this account.

• May help to pay long term care insurance premium• Long Term Care insurance helps protect the savings

Self -Insured

Long Term Care Need

$500,000

Principal Used to Pay for Long Term Care Need

= $25,000 Annual EarningsLiquid Asset Value = X 5% Annual Interest

Long Term Care Insurance approximately $2000 annually

Long Term Care Need

Long Term Care Insurance Helps Protect the $500,000 Principal

$500,000 $25,000

Long Term Care Insurance:

• Pays for covered custodial and community care.

• Benefits are paid for covered care you receive.

• Helps to protect your financial strategies.

Long term care insurance doesn’t replace the need for care – it builds on it, allowing the caregiver to take care of you better and for longer.

What to look for in an Long Term Care insurance policy.

Basic Policy Features

• Applied as a daily or monthly amountBenefit Amount

• How long is the “deductible?”• How many choices?

Elimination Period

• Limited or unlimitedLifetime Benefit Amount

Policy Exclusions

Home Care

• Be sure to ask about them.All policies have

1 Right for You?

1 America’s Health Insurance Plans Research Study (Issued 7/2004).2 LifePlans 2004 Long Term Care Individual and Group Association Top Writers Survey Results. Based on policies sold and annualized

premium inforce.3 A.M.Best Company ratings. 2nd highest of 16 ratings - for financial strength and operating performance as of 6/2004.4 National Association of Insurance Commissioners Long-Term Care Insurance Experience Reports for 2002 (Issued 2004).

103 Companies: Selling LTC Insurance 1

7 Policyholders: 100,000+2

4 Rated: A+ (Superior)3

3 Claims Paid: $1 Billion 4

Companies offering coverage…

Genworth Life Insurance Company

A proven, reliable company

30+ years in the long term care insurance industry

Innovative and Experienced leader

More long term care insurance claims paid than any other

Long Term Care Insurance from

Plan today and help secure your future!• If you don’t do it for yourself, do it for your family.

• Help protect your financial assets.

• Help protect your family’s goals.