Independent SolutionsSM Your solution to Long-Term Care Insurance. WHY YOU NEED LONG-TERM CARE INSURANCE? Underwritten by Continental Casualty Company. Policy Form number: GLTC-3-P-01-Series AG-141809-D Independent (Make it your Choice) Independent (Make it your Choice) Table of Contents Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 Today’s decisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 The younger worker . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 The middle aged worker . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 The 21st century family . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Retirees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 SolutionsSM ( 1 What do they have in common? They’re all unique. Fingerprints. Snowflakes. Spider webs. People. Think about people. We don’t look alike. We don’t act alike. And we each have very different needs. So smart companies design products that are flexible enough to suit us all. The group long-term care insurance described in this booklet – Independent SolutionsSM - offers economical, flexible plans that can be tailored to your particular situation. Many of your family members (spouses, parents and grandparents) are also eligible to apply for this coverage and we have a plan that will work for them as well. Take a few minutes to learn more about Independent SolutionsSM long-term care insurance and find out what it can mean to you and your future. Long-term care insurance is an important component of a sound financial plan. Read about it. Think about it. Ask questions. 2 ) Today’s decisions. If you’re like most people, long-term care – and long-term care insurance – probably aren't daily topics of discussion. But what you don't know about long-term care could have a far reaching affect on you and your family. Long-term care insurance helps pay for the care people need when they are unable to take care of themselves. Long-term care is provided in a setting other than the acute care portion of a hospital. This need for care could be the result of an injury from a car or motorcycle accident or due to a chronic illness such as multiple sclerosis. It can range from something as simple as meal preparation to assistance at home with daily activities such as bathing or dressing to skilled care in a nursing home. Tomorrow’s choices. With Independent SolutionsSM, you have a variety of choices regarding who your caregivers are, what paid care services you wish to receive and where you receive that care. With long-term care insurance, you have much flexibility to live independently at home. Long-term care insurance is a proven, economical way to help protect your income and assets for yourself and your heirs. Many people presume that long-term care is just for older people in nursing homes. In reality, the scope of long-term care services and facilities is much broader than that. Today, more and more health care services are being delivered right in the home. Advances in technology mean that more people can stay at home to receive the care they need. Other facilities – such as adult day care and assisted living – are also considered long-term care providers. Younger people can find themselves in need of long-term care as well. Accidents that result in a need for rehabilitation and long-term care services can happen to anyone at anytime. A 30-year old man recovering from an auto accident could require long-term care. Or a young mother who fell on a ski trip. Remember – it’s long-term – not permanent care. Many people receive long-term care only to return to full health and productivity. ( 3 How Independent SolutionsSM benefits the younger worker Up until last month, Sue was on the go all day long and well into the evening. But now, thanks to a serious illness, she’ll need care for at least a year. When Sue’s employer first offered group long-term care insurance, she was skeptical. What did a healthy 37-year-old need with something only old people need to have? Sue already had long-term disability insurance through her employer. But she quickly realized that disability insurance, which is often confused with long-term care insurance, is intended to replace the lost income due to her inability to work. It is used to pay the rent, utility bills and food. It’s not meant to pay for long-term care in the home. Sue read the material her employer provided and realized that long-term care meant more than care in nursing homes. It could also include care received at home. And the price was so reasonable, it seemed like a good idea to buy it. Her choice was certainly the right one. Sue’s long-term care coverage paid a portion of the cost to have a caregiver come into her home for six weeks each day to help her bathe and dress. She also needed some help with transferring and toileting. Through it all, Sue was able to maintain a semblance of normalcy. The long-term care insurance allowed Sue to receive the care she needed – at home. One of Sue’s hobbies is horseback riding which she is hoping to return 4 ) to in the future. How Independent SolutionsSM benefits the middle age worker At age 46, Don and Elaine Smith started serious financial planning. They’d always saved what they could, but with retirement less than 20 years off, it was time to take action. They maxed out their 401Ks, spent wisely and bought long-term care insurance – something Don had not considered until his company offered a group policy. Don and a financial advisor agreed that the coverage could be an important element in their financial plan. In the past few years, both Don and Elaine had watched their friends struggle in caring for elderly relatives and parents. The Smith’s didn’t want to be a burden to their children. And, they didn’t want to spend a lifetime’s worth of accumulated savings on long-term care. They also discovered that Medicare and medical insurance don’t pay as much as they thought. The decision to purchase long-term care insurance seemed smarter and smarter, especially after Elaine had a stroke. Initially, Elaine had paralysis on her left side, but the doctors all agreed that intense therapy would be needed to get Elaine back on her feet. Because their home had stairs, she went to live with her mother-in-law when discharged from rehab. Elaine’s policy paid for the care provided by the mother-in-law under the Alternate Plan of Care provision. After 6 months, she was able to return home. Elaine continued to improve and after three years returned to independence. ( 5 How Independent SolutionsSM benefits the 21st century family In the past, families stayed put. For the most part, we grew up and lived in the same towns as our parents and grandparents. Today, that kind of continuity is rare. The 21st century family tends to be mobile and can live anywhere in the country – no matter where they grew up. That means that taking care of someone far away is difficult on everyone – the person giving care and the person receiving care. Mary, age 59, went on claim for treatment of a brain tumor which interfered with the functioning of daily activities of living. She decided to move in with her daughter, Jane, who was a single mother with two small children. Jane tried hard to care for her mother’s needs for help with bathing, dressing and mobility. But she was also faced with taking care of her two small children. Eventually, Mary developed cognitive problems. At that point, a CNA Care Coordinator suggested an Adult Day Care Center may be helpful in providing care while Jane was at work. During the seven years Mary was on claim, Jane was able to continue as the main care giver for her mother with the help of Adult Day Care. This allows her to continue to work and care for her children. 6 ) How Independent SolutionsSM benefits the retired There are some things you just take for granted. The sun will rise in the east. Taxes are due April 15. And Medicare or Medicaid will be there if you need it. Well, the sun will rise in the east. Taxes are due April 15. But you can’t necessarily rely on the government for your long-term care needs. Federal and state sources combined account for only 37% of the costs of those receiving non-medical long-term care at home or in assisted living. Medicaid pays for care for only 7% of residents in assisted living facilities.1 And, chances are, you will need long-term care. In fact, over half of all women and about a third of all men who live to be age 65 will spend some time in a nursing home.2 Elizabeth – a retired school teacher – started forgetting simple things. At first, the problems were small – misplaced glasses and keys. But soon, those small, simple things grew into bigger problems. The diagnosis was Alzheimer’s Disease. Clearly, Elizabeth could no longer take care of herself – but even though she needed roundthe- clock care, she and her husband, Frank, were adamant about her staying at home. Elizabeth and her husband, Frank, each had purchased group long-term care insurance before he retired. He had read up on Medicare and realized that it didn’t offer the protection and security he wanted. Fortunately, long-term care insurance provides Elizabeth with the assistance and care she needs. And their CNA Care Coordinator was able to develop a plan that suited everyone. At age 71, Elizabeth went on claim. Frank was the main caregiver for several years, but eventually reached a point where he needed time off from his caregiving responsibilities. Elizabeth would not allow anyone into their home and she would not stay at an Adult Day Care Center, which he tried once. When she went on claim, the only interest/activity that she had retained was ballroom dancing. This was something Frank wanted to continue for as long as possible. Elizabeth had taken lessons from the same instructor for eight years and was very comfortable with him. Frank made arrangements for the instructor to pick up Elizabeth once she couldn’t drive any longer. He then took her to lunch and to a lesson. Frank also made arrangements for the instructor to take Elizabeth on some errands. This gave Elizabeth a meaningful activity and gave her husband some needed time to himself. Elizabeth’s long-term care policy covered this arrangement under the Alternate Plan of Care. Eventually, her cognitive impairment reached the point where she could not be left alone. At this point she began using a home health aide, which is covered under the policy. She now receives 24 hour care which is shared between the aide and Frank. Having Elizabeth at home meant the world to Frank. And having the benefits from their long-term care coverage meant that Elizabeth received excellent care in their home. 1Source: U.S. Department of Labor, Report of Advisory Council on Employee Welfare and Pension Benefit Plans, November 2000. 2Source: “Living and Dying” Wall Street Journal, February 21, 2001. ( 7 Independent (Make it your Choice) Independent (Make it your Choice) SolutionsSM CNA is a registered service mark of the CNA Financial Corporation. The member company which underwrites our long-term products is Continental Casualty Company. This brochure is for illustrative purposes only and is not a contract. It is intended to provide a general overview of the plan described. Please remember only the insurance policy can give actual terms, coverage, amounts, conditions and exclusions. Not all features are available in all states. 3/05 Printed in USA