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Extended Care and Long Term Care Planning

Presented by: {First Name Last Name}, {Title}

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DisclosureThese materials are provided for educational purposes and may be used in conjunction with the solicitation of an insurance product to the public. For use with non-registered products only. Variable is not discussed within this presentation. The insurance products described may be issued by various companies and may not be available in all states. All comments about such products are subject to the terms and conditions of the annuity and/or insurance contract issued by the carrier and policy terms, conditions and limitations may apply. Not all applicants will qualify for coverage. Your insurance producer may recommend insurance products based on the individual circumstances you communicated. You should not purchase an insurance product unless accompanied by a compliant carrier illustration. Carrier illustrations are based on the individual circumstances you presented to your producer. The underwriting class illustrated may not be the underwriting class ultimately issued by the carrier. The carrier may, in its sole discretion, issue a policy other than applied for based upon information received during the underwriting process. The premiums and benefits illustrated are based on information provided by the carrier at the time the illustration is run and are subject to change at any time at the sole discretion of the carrier.

BB&T Life Insurance Services, its agents and representatives may not give legal or tax advice. Any discussion of taxes herein or related to this document is for general information purposes only and does not purport to be complete or cover every situation. Tax law is subject to interpretation and legislative change. Tax results and the appropriateness of any product for any specific taxpayer may vary depending on the facts and circumstances. Clients should consult with and rely on their own independent legal and tax advisors regarding their particular set of facts and circumstances before purchasing an insurance product. To ensure compliance with requirements imposed by the IRS, we inform you that, unless expressly stated otherwise, any U.S. federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein.

Please note that in order to provide a recommendation to a client about the transfer of funds from an investment product, including those within an IRA, 401(k), ROTH IRA, or other retirement plan, to fixed or variable insurance product, an insurance producer must hold the proper securities registration and be currently affiliated with a broker/dealer or registered investment adviser. Investing advice can only be provided by an appropriately qualified investment advisor.

Policy riders are available at an additional cost and may not be available in all states or for all products. Terms and conditions apply.

For use with non-registered products only. Insurance products are offered through Crump Life Insurance Services, Inc. DBA BB&T Life Insurance Services, AR license #100103477, a wholly owned subsidiary of BB&T Insurance Holdings, Inc. Insurance products are not a deposit, not FDIC insured, not guaranteed by the bank, not insured by any federal government agency and may go down in value. Insurance.BBT.com. 03.20 BBTL20-8399-A, 0321

© 2020 Branch Banking and Trust Company (BB&T now Truist). All Rights Reserved.

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Long Term Care

Types of Care

Who Pays For Care

Types of Plans Available

Agenda

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Long Term Care:The Basics

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Why Do People Need Care?

Assistance or supervision to perform Activities of Daily Living (ADLs): Bathing, Dressing, Eating, Continence, Toileting, Transferring

OR:

Assistance or supervision due to severe Cognitive Impairment,such as: Alzheimer’s disease, dementia, other brain disorders

Long term care services are provided to individuals when they require ongoing…

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What are the Types of LTC Services?

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Who Pays for the Coverage?

Medicare̶ Age 65+, 3 day hospital stay, skilled care̶ Covers days 1-20 100%, Co-Pay $167.50 next 21-100 days

Medicaid̶ Federal/State funded, financial eligibility, 5yr lookback, estate

recovery

VA Benefits̶ Priority group system - illnesses related to service come first

Personal Income and Assets

Long Term Care Insurance

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What is the Impact of Providing Care?

The need for extended care may significantly change the life of the family member providing the care.

Factors that may impact those providing care include:

Increased Stress

Sibling Tension

Decline in Well-being

Second Marriages

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What are the Financial Consequences?

It’s true – wealthier people may be able to cover the cost of care.

However, have they considered the following?

Tax Implications

Market Timing Liquidity Loss of

Future Income

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What is Long Term Care Insurance?

Pays for care provided to individuals who, because of a physical or cognitive impairment, need assistance.

Custodial vs. Skilled

Provides a stream of income used to pay for care

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What are the Main Components?

*Policy riders are available at an additional cost and may not be available in all states or for all products. Terms and conditions apply.

Survivorship Benefit Cash Alternatives Return of Premium/Surrender Value Death Benefit

Other Optional Riders*

Shared Coverage Joint/Spousal Waiver of Premium Waiver of Elimination Period for

Home Care

BenefitAmount

$1,500 – $12,000(monthly max.)

BenefitPeriod

(yrs.)

2 Years - Lifetime

EliminationPeriod0-90 days,

varies by carrier

InflationProtection1-5% Simple

3-5% Compound

Life Insurance or

AnnuitySurrender value

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Traditional LTC Policy

Maximum leverage per dollar,

(lowest premium for comparable coverage)

Can be funded with HSA dollars

Potentially tax deductible

Monthly/daily benefit with specified

benefit duration

Inflation protection options with a variety

of optional riders

Services - home healthcare, assisted living,

nursing home care, adult day care, hospice

Highly Customizable: Flexible Design(You Choose)

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Hybrid LTC Policy(Asset-Based Investment)

LTC policy + Death Benefit

Premiums payment method (1,3,5,7,10, Annual)

Potential tax-advantaged LTC benefits

Tax-free death benefit

Surrender value

Inflation options available

Services - home healthcare, assisted living, nursing

home care, adult day care, hospice

Reallocation of assets

CombinedLinked Benefits:(Live, Die, Quit Solution)

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Hybrid (“Linked Benefits”) LTC Policies

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Case StudyClient Profile: Female, Age 60 Current Liquidity: $750,000 Additional income $100K CD coming due Financial plan shows she has

enough to retire and live comfortably

Children all reside in different locations

Potential Solution:Reposition her current asset in the CD and use the funds to pay for a hybrid LTC product. By doing this, she will significantly increase her LTC benefit, helping protect herself from LTC costs. If she never needs care, she will have a tax-free death benefit to pass onto her heirs.

Hybrid (“Linked Benefits”) LTC Policies

Case studies are offered to show how BB&T Life Insurance Services can provide valuable assistance to financial advisors seeking insurance solutions for their clients. Results may vary. This is a hypothetical example and does not guarantee a similar results.

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Death benefit = LTC benefit amount

Monthly benefit amount is elected

Services - home healthcare, assisted living, nursing

home care, adult day care, hospice

Premium used for LTC costs is locked in

Tax-free death benefit

2nd to die options

Flexible Protection

Life Insurance with LTC Rider

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Joint Life Policies with LTC Riders

Do not have to be married

– Living together, sharing bills

– Brothers and sisters

– Mother and daughter within 25 years of age

– Business partners owningbusiness or property together

– Same sex couples

– Divorced couple with joint assets

*Joint policy option not available on all life policies with LTC riders.

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What Does Your LTC Plan Look Like?

Insured’s own home

Continuing or life care community

Adultday care

Assisted Living Facility

Nursing Facility

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What Should You Consider?

If it happened today, what would your concerns be?

If single/widowed, protect assets for self should you recover

Protect family from impact of needing care

Assure ability to keep financial commitments

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What about the Premiums?

Insurability, Premium Funding and Affordability– Premiums will vary depending on:

• Age• Gender• Health• Type of insurance products considered

– Premiums can potentially be funded with:• Cash value from other/old life insurance policies• Old annuities• Low producing Certificate of Deposits (CDs)• Tax qualified monies• New money

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Next Steps? Meet with our Strategist to help determine if extended care planning

is right for you

If you believe it is, they can assist you in determining if you may be eligible and which plan would be an appropriate fit for your needs