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LTC Affluent Market PDF Print E-mail

Provider: Broker Service Marketing Group II, LLC

Course Title: Long Term Care Insurance In the Affluent Market

Presented by: Raphal Paola III, LTCP, Director of Long Term Care

Method of Presentation: Live classroom

Method of Determining Satisfactory Completion: Attendance

Word

Timed Outline (Time to Complete Course = 2 hours)

I. Long Term Care Risk (3 minutes)

  1. Defining the Risk
  2. Transfer of Risk
  3. Burden on the Family

II. Definition of Long Term Care (3 minutes)

  1. Extended care, medical and non-medical services
  2. Areas of Service delivery
  3. Range of services

III. Long Term Care Legislative Update (10 minutes)

  1. Long Term Care Security Act of 2000 eff. May 8, 2000
  2. MPDIMA of 2003
  3. Deficit Reduction Act of 2005

IV. LTC Costs (4 minutes)

  1. By State
  2. By Area of Service delivery

V. Financing Long Term Care (6 minutes)

  1. Medicaid
  2. Personal Assets/Self Insure
  3. Long Term Care Insurance

VI. Medicare (6 minutes)

  1. 3 Nights of Hospitalization
  2. First 20 days
  3. Day 21 - 100
  4. After 100 days

VII. Skilled Care Study (3 minutes)

  1. Harvard University Study

VIII. Medicaid (3 minutes)

  1. Spend down

IX. Long Term Care Delivery (4 minutes)

  1. Home Health Care
  2. Adult Day Care
  3. Assisted Living
  4. Nursing Home Care

X. LTC Menu of Benefits (8 minutes)

  1. Daily Benefit
  2. Elimination Period
  3. Benefit Period
  4. Inflation
  5. Premium Payments

XI. When Benefits are Paid (6 minutes)

  1. Section 7702B
  2. Triggers / ADLs

XII. Why Transfer the Risk (5 minutes)

  1. Control of Care Reduces Family Stress
  2. Tax Leverage
  3. Tame the Most Volatile Future Liability
  4. Protect Assets

XIII. Why Corporate LTCI (8 minutes)

  1. Corporate LTC is the "sweet spot"
  2. Chance of Insurability is greater
  3. Include Coverage for Spouse, Significant other
  4. Tax Leverage
  5. 10 Pay LTCI reduces future risk
  6. Benefits are tax free
  7. $270 per diem in 2008

XIV. Tools you need (6 minutes)

  1. ERISA treatment of plan
  2. Memo to covered employees
  3. Corporate Minutes and Resolutions

XV. Corporate LTC Sales Idea (6 minutes)

  1. Corporate checkbook
  2. Descrimination
  3. Ten Pay Period
  4. Tax Free Benefit

XVI. High Cost of Waiting (5 minutes)

  1. Case study age 55 vs. age 65
  2. Using Entity Dollars vs. After Tax Dollars

XVII. C-Corp. (6 minutes)

  1. LTC Insurance is considered accident and health insurance, per HIPAA 1996
  2. Employer paid portion of tax qualified LTC Insurance premium is deductible Sec. 213(d)(i)(D), as an ordinary and necessary business expense, Sec. 162 (a)
  3. Can discriminate by class

XVIII. S-Corp. (7 minutes)

  1. Case study
  2. IRC 213(d)(10)
  3. 1120S/K-1/1040

XIX. Advanced Planning with LTCI (6 minutes)

  1. Wealthy Estate Owner
  2. Irrevocable Trust
  3. Income & Estate Tax Free to Heirs

XX. Financial Integrity of LTCI Company (7 minutes)

  1. Financial Strengths
  2. Comdex Ratings
  3. Carrier Commitment
  4. Future Price Stability

XXI. Where Do I Find Them (3 minutes)

  1. Your own files
  2. Businesses
    1. "C" Corps Preferable
  3. Advisor Referrals
    1. CPAs
    2. Attorneys
    3. Bankers
    4. Stockbrokers

XXII. Best Idea of All (2 minutes)

  1. Consider your own policy
  2. Design it as if you were going to need it
    1. Lifetime Benefit
    2. Inflation Protection