1

Long Term CareInsurance

Freedom.Choices.

Independence.

NAMETITLE

ORGANIZATION

2

What exactly is long term care?

■ Help with daily activities such as eating, bathing or dressing

■ Care can take place in your home, an assisted-living facility, an adult day care center or a nursing home

■ It encompasses services available in the community, such as visiting nurses, home health aides, home-delivered meals, housekeeping services and adult day care centers

■ Also covers respite care that provides support to the primary caregiver, enabling him or her to take a break

3

Who provides care1?

■ Most long-term care – about 80 percent – is provided by unpaid caregivers, such as family and friends

■ At least 6 out of 10 of these caregivers are also employed in the paid workforce

■ 42 percent are over the age of 50

1 Eckenwiler, Lisa, Center for American Progress, “Caring about Long-Term Care; an Ethical Framework for Caregiving” (2007)

4

Who needs long term care?

■ Only 37% of Americans believe they will ever need long-term care2

■ Fact: 67% of Americans will indeed need long-term care after the age of 652

● And women are more at risk than men3…

2 AARP’s Public Policy Institute

3 U.S. Department of Health and Human Services, National Clearinghouse for Long Term Care Information, www.longtermcare.gov

5

The cost of long term care4

■ National averages: ● Home health aide = $1,972 per month● Assisted living = $3,008 per month● Nursing home = $6,357 per month

■ In Illinois:● Home health aide = $2,210 per month● Assisted living = $3,732 per month● Nursing home = $5,414 per month

4 U.S. Department of Health and Human Services, National Clearinghouse for Long Term Care Information, www.longtermcare.gov. Monthly home care calculation based on 2008 national average hourly rate of $29 and 17 hours of care per week for 4 weeks per National Claimant Study. Monthly nursing home calculation based on 2008 national average daily rate of $209 for 365 days divided by 12 months.

6

Paying for long term care

■ Self insure■ Medicare■ Medicare supplemental insurance■ Medicaid■ CLASS Act■ Long term care insurance

“Medicare does not pay for long-term care, so you may

want to consider options for private insurance.”

Source: Social Security Statement; Social Security Administration

7

What is long term care insurance?

■ It enables you to obtain the quality of care you want, where you want

■ It can help you and your family avoid financial strain during a potentially difficult time

■ Can also help maintain your independence and your quality of life

Freedom.

Choices.

Independence.

8

9 things to look for before you buy…

1. Stay at home benefits

2. Flexible benefit options

3. Inflation protection

4. Calendar day elimination period

5. Claiming benefits

6. Cash benefit

7. Monthly rather than daily benefits

8. Buy the best you can … but buy something

9. Seek out professional advice

9

Resources

10

IMPORTANT

Policy issued by:

American General Life Insurance Company2727-A Allen Parkway, Houston, Texas 77019

American General Long Term Care Insurance Policy Form Number 08000

Important Note: All benefits payable are subject to the terms and conditions of the policy, including benefit durations, limitations and exclusions. Not all benefits and exclusions apply in every state. Please consult the policy form and outline of coverage for details.

The underwriting risks, financial and contractual obligations and support functions associated with the products issued by American General Life Insurance Company (AGL) are its responsibility. AGL does not solicit business in the state of New York. Policies and riders not available in all states.

This is a solicitation for insurance. You may be contacted by an agent.

American General Life Companies, www.americangeneral.com, is the marketing name for the insurance companies and affiliates comprising the domestic life operations of American International Group, Inc., including AGL.

© 2010. All rights reserved.

AGLC104302