This workshop features three parts: Secret #1: Converting Life Insurance to a Life Care Benefit Plan. There is $500 billion in life insurance death benefit in the hands of senior citizens 65 years or older in the US today, yet 88% of all policies will either lapse or be surrendered for little of no value. Find out if converting this benefit into a Life Care plan benefit is available to you. Secret #2: Accessing Veterans Benefits. Veterans and surviving spouses can qualify for over $2,000 per month in long-term care services. Find out how. Secret #3: Utilizing Long-Term Care Insurance or other Third Party Payors. Navigate your policy and uncover other local community payment relief options.

1. “Planning & Paying for
Long-Term Care”
Webinar Workshop

2. Housekeeping & Q/A
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• Griswold Home Care and partner presenters and their respective firms are not a law firm. We do not offer legal advice.
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4. Our Goal for Today
• Frame the cost and impact of Long-Term Care planning
• Uncovering Options to Pay For Long-Term Care
– Life Insurance
– Veterans Benefits
– Long-Term Care Insurance
– Other Third-Party Payors

5. Presented by:
Patricia Servaes
Founder of Elder Resource Benefits Consulting
Don Poole
Co-Founder and Chief Marketing Officer
Life Care Funding, LLC
Matt Murphy
President
Financial Health Services, LLC

6. What is Long Term Care?
Long-term care is a range of services and supports you may need to meet your personal
care needs. Most long-term care is not medical care, but rather assistance with the basic
personal tasks of everyday life, sometimes called Activities of Daily Living (ADLs), such as:
Bathing
Dressing
Using the toilet
Transferring (to or from bed or chair)
Caring for incontinence
Eating
70 percent of people over the age of 65 will need long term care
services at some point in their lifetime
http://longtermcare.gov/the-basics/what-is-long-term-care/

7. Cost of Long Term Care
• Cost can easily be the single largest lifetime
expense of an individual
• Tool: www.genworth.com/costofcare

8. Impact of LTC on Care Recipient
Genworth Cost of Care Survey 2013 – ‘Beyond Dollars’ - The True Impact of Long Term Caring Report.
• 88% of Care Recipients said their household income was reduced by an average 34%
due to their long term care event
• 63% Reduced their savings by an average 61%
• 49% Of care recipients had never considered the possibility of needing long term care

9. Impact of LTC on Primary Caregiver
Genworth Cost of Care Survey 2013 – ‘Beyond Dollars’ - The True Impact of Long Term Caring Report.
• 83% of Primary Caregivers Contributed financially to their loved-ones long term care
— an average $8,800 for out-of-pocket care expenses (excludes cost of facility care)
• 42% of Primary Caregivers reported the care recipient lived in their home for 3 or
more years
• 63% of Primary Caregivers reported lost income — an average of 23% of household
income

10. Beyond the Dollars
“My wife had to be available 24/7.
She also became
my chauffeur and needed to help me
shower and
dress — to help me move at all,
really. It impacted
her freedom and her lifestyle.”
“Anger at my sister and
Brother for not helping more
with our mom... Stress with my
Husband over how much of ‘our
personal time’ taking care of mom is
taking up from our own lives.”

11. Paying for Long Term Care
• ‘Long term care can be expensive — and,
typically, it's an out-of-pocket expense.’
• ‘The more you know about the options,
however, the better choices you can make.’
http://www.mayoclinic.com/health/long-term-care

12. Featured Speaker
Don Poole
Co-Founder and Chief Marketing Officer
Life Care Funding, LLC

13. www.lifecarefunding.com
(888) 670-7773

14. Life Care Funding
Allows Seniors to Convert a
Life Insurance Policy into a Life
Care Benefit Plan which is paid
directly to the care provider of
their choice.
-Private Duty Home Care
-Home Health Care
-Assisted Living
-Independent Living
-Skilled Nursing
-Related Services

15. According to Conning & Company:
"There are 150 million life
insurance policies in-force in the
United States of which senior
citizens own up to $500 Billion
worth of policies.”
88% of all policies issued will lapse
or be surrendered for little or no
value.
According to a 2007 GAO study:
38% of Medicaid applicants owned a
life insurance policy that needed to be
liquidated to qualify.

16. A Life Insurance Policy is legally
protected as personal property by
the US Supreme Court and the
policy holder has the guaranteed
right to use it to pay for Senior
Care.
“A Life Insurance Policy is
personal property just like a
home or stocks.”
Supreme Court case Grigsby v. Russell
(1911)
-Justice Oliver Wendell Holmes

17. Life Insurance needs are
based on Insurable Interest
Q: What was the Insurable
Interest you were trying to
protect when you bought
your Life Insurance Policy?
A: If a policy owner needs in
home care and no longer
needs or can not afford their
Life Insurance Policy, then
converting it to pay for Senior
Living should be considered.

18. Seniors have few options if they
do not need or can no longer
afford their Life Insurance
Policies:
- Continue paying premiums, keep
policy in-force so beneficiaries
can collect Tax Free, Probate
Free Death Benefit.
- Surrender the Policy back to the
Life Insurance Company:
Average Cash Surrender Value
4-6% of face; well below the
potential present day value.
- Stop paying premiums, Lapse or
Abandon the Life Insurance
Policy for No Value.

19. Key Components:
•Preserves Death Benefit over the
course of the spend down period
•Balance of Benefit paid to family if
senior dies before payout period
•Funds paid to care provider
through an FDIC Insured,
Irrevocable Benefit Account
•Keeps people off Medicaid,
Qualified Medicaid Spend-Down of
unprotected asset
•Any type/size Life Insurance
policies
•No cost or obligation to apply
•30 to 45 days to qualify
Life Care Funding
Allows Seniors to Convert a Life
Insurance Policy into a Life Care Benefit
Plan which is paid directly to the care
provider of their choice.

20. Life Care Benefit Enrollment
Example #1
Case Study: 14793181H
Policy owner: 70 Male
Policy value: $250,000 (term)
Lapse Value: $0
Cash Value: $0
Life Care Benefit: $150,000 or
60% of death benefit

21. Case Study: 27785691A
Policy owner: 73 Female
Policy value: $100,000 (UL)
Lapse Value: $0
Cash Value: $0
Life Care Benefit: $35,000
or 35% of death benefit
Life Care Benefit Enrollment
Example #2

22. Seniors and their
families need to know
that if they own a Life
Insurance Policy they
can use it pay for
Private Duty Home
Care.

23. Policy Conversion Bills Based on Life Care Funding Program
Introduced to Legislatures as of September, 2013:
CA- SB 214
NY- A 7952
FL- HB 535
NJ- A 4168
KY- HB 314
LA- HB 545
ME- LD 1092
Legislative Activity to Educate and Inform
Texas HB2383
Signed into Law by
Gov. Rick Perry
June 14, 2013
Bills grant authority to the state Medicaid Departments to
educate citizens about the option to convert a life
insurance policy into a specifically configured Long Term
Care Benefit Plan as part of a Medicaid spend-down.

24. • Consumer: Use an asset they own and paid for over years
of premium payments to fund their Senior Care by
converting it into a Life Care Benefit Plan to help them stay
safely and comfortably in their homes, while preserving a
portion of the death benefit for the family.
• Senior Care Provider: Private Duty Home Care service
provider receives private pay funding for services over a
guaranteed time frame without disruption. (Increase
Revenue)
• Tax Payers: Keeps people private pay and off Medicaid.
Qualified spend-down of Life Insurance Policy to keep a
person private pay and delay entry onto Medicaid
generating considerable savings for tax payers.
Who Benefits and How?

25. It’s all about Options:
Educating Seniors and
their families about
how they can convert
their Life Insurance
Policy Death Benefit
into a Living Benefit to
remain safely and
comfortably in their
Homes.
www.lifecarefunding.com
(888) 670-7773

26. Featured Speaker:
Patricia Servaes
Founder of Elder Resource Benefits Consulting

27. 27
Confidential
Bringing the VA Benefit Home
Elder Resource Benefits Consulting is not a Veterans Services Organization
and is not affiliated with the VA

28. Veterans Administration - Aid & Attendance Pension
to assist wartime veterans and their surviving
spouses who:
Require the Aid & Attendance of another person to
assist with aspects of daily living.
As of November 2012
9 Million Veterans are over age 65 –
and this does not include their
Surviving Spouses
This tax free benefit has been available since the early 1950s.
OVERVIEW
28

29. THE MAXIMUM AWARD FOR 2013
 A Surviving Spouse can receive up to
$1,113 per month
 A Veteran can receive up to $1,732 per
month
 A Veteran with a Spouse can receive up
to $2,054 per month
 Well Veteran with an ill Spouse can
receive up to $1,360 per month
Once the applicant meets the disability criteria for A&A, the actual amount of the
original award is determined by their Monthly Financial Means Test
29

30. WHO IS A WARTIME VETERAN?
To be considered a War Time Veteran, The Veteran needs to
have Served at least One Day during a Period of War
Periods of war for this benefit are:
 World War II – Dec. 7, 1941, thru Dec. 31, 1946. Min 90 days active service
 Korean War - June 27,1950, thru January 31,1955 Min 90 days active service
 Vietnam War – Min 90 days active service
 From Feb. 28, 1961 thru Aug.4, 1964 – only if
“in-country” of Vietnam
 August 5, 1964, and ending on May 7, 1975 –
no matter where in the world you served
 Persian Gulf War - August 2, 1990, through date to Min 2 years active service
be prescribed by Presidential proclamation or law – should be soon!
30

31. WHO IS A SURVIVING SPOUSE?
Someone who was married to
the Veteran at the time of his death
What if the person was married to a veteran, he died
and she remarried a non-veteran or divorced a
veteran?
31

32. MEDICAL REQUIREMENT
You must need the assistance of
another person with
Activities of Daily Living
32

33. THE INCOME TEST
What is Income?
Income, for the most part, is everything most of us
think of as income –
So do we all agree we know what
income is?
33

34. Well That’s Not It !
Income For VA Purposes:
Income MINUS
Regularly Occurring, Unreimbursed
Medical Expenses
as long as you meet the Criteria for Aid and
Attendance
34

35. THE INCOME TEST - EXAMPLE
$3,000 Income per month
$4,000 per month – HC cost
$-1,000 income for VA Purposes
- If your Income for VA purposes is $0 or Negative, there
is potential for the full Monthly Amount
- If the HC Cost is $2,000 your VA income is $1,000,
Subtract the $1,000 from the maximum award for an
approximate VA benefit
35

36. AGING IN PLACE
If our Applicant had $25,000 in assets & $1,000 in
additional monthly expenses - they would be out of
assets in 12.5 months or 1.04 years – but with the
benefit there assets would last:
 2.35 years for the Surviving Spouse
 3.26 years for the Well Vet ill Spouse
 7.80 years for the Single Veteran
 And we would have positive cash flow
for our married Veteran
36

37. THE ASSET TEST
 The Asset Limit is determined by each individual’s
situation
 The largest amount of assets that an individual had
in their own name that ERBC successfully helped get
the award was $248,000 – but that is a rarity!
 Most people seem to be able to be between $120,000
to $150,000 – although some can only have much
less
The important thing to remember is this is not a Yes or
No Award, it is If and When.
37

38. MYTH BUSTERS
Do you know…
…that there is no $80,000 asset limit?
…that when a veteran or spouse is in a nursing home
on Medicaid the non-Medicaid spouse may still get
the full benefit at Home?
…that a veteran living at home whose wife is receiving
Home Care may still qualify for $1,360 per month?
Thanks to ERBC, Now You Do!
38

39. Matt Murphy
President, Financial Health Services,
LLC
Featured Speaker:

40. Our Mission
Financial Health Services (“FHS”)
helps seniors
pay for long term care.

41.  25+ years providing services in the non-
medical home care
 900+ current clients (care recipients)
 150+ third party payor relationships
 100+ non-medical home care providers
 20+ employees
 HQ in Plymouth Meeting, PA
About Us

42. Overview

43. Third Party Payor Services
 Expertise
Works with all types of third party payors
e.g. long term care insurance, government, non-profit,
hospice
 Administrative convenience
Allows care recipients and care providers to
focus exclusively on care
 Cash flow benefit to your clients
No to little out of pocket impact
Fees paid by third party payor
 Ensures regulatory compliance

45. Easy Pay
 Offers Administrative Convenience
Overcome the 2-check objection
Mitigate collection risk
 FHS accepts most forms of payment
i.e., ACH, Visa, MC, Check
 Economics
5% of the sum of caregiver fee + the office fee

46. • Long Term Care Planning affects the entire family
• The cost of Long-Term Care is high
Key Takeaways