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Long Term CareTop

Today we see what were once unimaginable advances in medicine and technology, which can mean more complete, effective care for millions of Americans. It also means that no one can predict exactly what form that care will take in the future.

That's where the Farmers Long-Term Care (LTC) plans come in. They're designed to be flexible, assuring that you have a range of options from which to choose. The benefits you select today are designed to adapt to future innovations in long-term care.

The Farmers Long-Term Care plans let you determine exactly how much coverage you need. Both plans meet federal standards for favorable tax treatment of premiums and benefits. Where required, additional plans are made available on a non tax-qualified basis.

Why long-term care insurance is important

A 1991 New England Journal of Medicine study projected that "for people who turned 65 in 1990, 43 percent would enter a nursing home at some time before they die." Because of their concern about the high cost of long-term care, federal and state governments have passed laws which encourage the purchase of long-term care insurance.

Who pays for long-term care now?

Of the nearly $91 billion spent on long-term care and nursing homes in 1995, the elderly and their families paid almost 40 percent of long-term health care costs. About 6.5 million people, nearly a fifth of the population 65 years and older, already require assistance, and about 22 million families nearly one in four are providing some form of assistance to an older relative or friend.

For all the attention given to the problems in the Social Security system, the federal pension program, Medicare and federal health insurance for the elderly, many experts believe that the gap in long-term care coverage poses the most immediate and most devastating threat to the financial security of older Americans and their families.

Who will need long-term care insurance?

Long-term care (LTC) insurance may be a sensible solution for individuals and couples with even moderate assets who meet medical qualifications. The question remains, "Who might benefit from purchasing LTC insurance?"

     

  • Customers in the middle or high-middle-income bracket who have accumulated even modest estates will readily understand the importance of protecting themselves against the high cost of long-term care. They do not want to spend their assets to qualify for Medicaid. LTC may not be necessary for those with very limited assets since Medicaid is available for the individuals who meet extremely restrictive asset and income standards. Effectively, the recipient must be impoverished.

     

     

  • Even the wealthy may purchase long-term care as an integral part of a risk-management plan just as they purchase homeowners and automobile insurance. Long-term care insurance can be the most cost-effective way for wealthy people to manage this risk.

     

     

    • Long-term care can save more than assets. When resources are not available to cover the high cost of long-term care, spouses and children will usually exhaust all of their energy taking care of loved ones requiring "intense care." Long-term care insurance purchased before the need arises can provide a solution to this problem. A new study reveals that "feelings of isolation and depression" are prevalent among caregivers in the United States. Depression was reported by 67 percent of children who care for a parent and by 61 percent of all respondents, which is about six times the national average.

 

Farmers agents in approved states can help customers select the right solutions for their retirement needs, including long-term care insurance. Agents will be able to show customers the relative benefits of purchasing a long-term care policy and the benefits of accumulating funds in tax-advantaged retirement annuity policies like Roth IRAs to help meet long-term care needs.

What are your options for paying for long-term care?

Medicare
Medicare will pay only for skilled care in a nursing home and only after three days in the hospital. On average, Medicare only pays for approximately 8 percent of long-term care costs in a nursing home.

Medicaid
Medicaid will pay for care, but only if you meet income qualification levels. In effect, you must prove that you are impoverished.

Your family
With average annual costs for nursing home care running at $30,000 to $50,000, out-of-pocket expenditures for long-term care can devastate a family's financial plans.

You could self-insure
You can do nothing and think "it won't happen to me"; however, the risk of needing care is high. You can transfer the risk to insurance. For major liability risks, including coverage for their home, auto and health, people insure the risk. Why should the risk of needing long-term care be any different?
Farmers Life Insurance may offer your best solution.

The Farmers Long-Term Care plans ... tomorrow's long-term care protection, today

Today we see what were once unimaginable advances in medicine and technology, which can mean more complete, effective care for millions of Americans. It also means that no one can predict exactly what form that care will take in the future.

That's where the Farmers Long-Term Care plans come in. They're designed to be flexible, assuring that you have a range of options from which to choose. The benefits you select today are designed to adapt to future innovations in long-term care.

The Farmers Long-Term Care plans let you determine exactly how much coverage you need. And both plans meet federal standards for favorable tax treatment of premiums and benefits.

What follows is a description of the general benefits available in the Farmers Long-Term Care plans. Following the general benefits section you will see the plan-specific benefit descriptions of each plan: Farmers Premier LTC and Farmers Long-Term Care.

With Farmers Premier LTC, you enjoy the following benefits:

An enhanced home care benefits package, including:

  • Weekly home and community-based care
  • Independent caregiver certification
  • Home medical technology
  • Flexible home care
  • Respite care
  • Informal caregiver training
  • Facility care
  • Alternate care facility (including care in assisted living facilities)
  • Alternate plan of care
  • Bed reservation
  • Waiver of premium

 

Farmers Long-Term Care provides a broad menu of benefits:

  • Daily home and community-based care
  • Respite care
  • Informal caregiver training
  • Medical help
  • Facility care
  • Alternate care facility (including care in assisted living facilities)
  • Alternate plan of care
  • Bed reservation
  • Waiver of premium

 

Additional benefits under both Farmers Long-Term Care plans

A 20% discount for spouses
Married couples who are approved together for Farmers Long-Term Care coverage both qualify for the discount.

Professional care managers and health professionals for claims assistance
When you need to access your policy benefits, call us and discover the one-on-one attention that has earned our claims professionals an unparalleled reputation in the industry. We offer coverage for all mental conditions, including Alzheimer's disease and other mental disorders, and coverage for pre-existing conditions. If you are approved for coverage, all pre-existing conditions are covered immediately.

An unlimited time period for accumulation of your elimination period
With the Farmers LTC Series, your elimination period must be satisfied only once in your lifetime and may accumulate over the life of your policy.

Tax-favored benefits
Your benefits, within limits prescribed for Tax Qualified Plans, will be received tax-free. Also, your premiums, within limits, may be deductible from your federal income tax. We recommend you consult your tax adviser for more information.

Protection against an unintentional policy lapse
To help protect you against an accidental lapse in your coverage, we will notify you and anyone you designate in advance that your payment has not been received and your coverage may lapse.

Guaranteed renewable coverage for life
Your coverage will remain in force as long as your premiums are paid on time.

No age-based premium increases
Your premium rate can be increased only if rates for everyone in your state and rate class are increased.

Farmers LTC benefit options

  • Survivorship benefit for married couples
  • Shared advantage rider for married couples
With the shared advantage rider, you and your spouse can purchase additional benefits to share between you.
  • Dual waiver of premium benefit for married couples
  • Restoration of benefits rider
  • Nonforfeiture
  • Cost of living increase (COLI) rider
  • Automatic increase benefit (AIB) rider
To help you protect against the eroding effects of inflation and the rising costs of care, every Farmers Long-Term Care plan gives you the option of purchasing an AIB rider.


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