Planit:Long-Term Care Calculator Case Study

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The Long-Term Care Calculator helps you identify the amount of Long-Term Care insurance that may be required to protect your client’s estate from the erosion caused by long- term care expenses. The calculations allow you to see the future value and present value of the erosion caused with no coverage and with coverage of a specified percentage. It also shows how estate erosion can be totally eliminated with 100% coverage. This calculator takes into consideration both a period of home care and a period of facility care starting at the ages you select. If you want to pre-populate this calculator with information from the Client Data Entry screens, you must have entered the Personal Information for your client, as well as completed the Asset Allocation screen. This will override any defaults in the Age, Retire By, Mortality, Inflation Assumption and Return fields. Contents 1 Example Problem One: 2 Solution Using Long-Term Care Calculator: 3 Example Problem Two: 4 Solution Using Long-Term Care Calculator: 5 Example Problem Three: 5.1 Solution Using the Long-Term Care Calculator: 5.2 Example Problem One: 6 Solution Using Long-Term Care Calculator: 7 Example Problem Two: 8 Solution Using Long-Term Care Calculator: 9 Example Problem Three: 9.1 Solution Using the Long-Term Care Calculator: 9.2 Example Problem One: 10 Solution Using Long-Term Care Calculator: 11 Example Problem Two: 12 Solution Using Long-Term Care Calculator: 13 Example Problem Three: 13.1 Solution Using the Long-Term Care Calculator: 13.2 Example Problem One: 14 Solution Using Long-Term Care Calculator: 15 Example Problem Two: 16 Solution Using Long-Term Care Calculator: 17 Example Problem Three: 17.1 Solution Using the Long-Term Care Calculator: 17.2 Example Problem One: 18 Solution Using Long-Term Care Calculator: 19 Example Problem Two: 20 Solution Using Long-Term Care Calculator: 21 Example Problem Three: 21.1 Solution Using the Long-Term Care Calculator: 21.2 Example Problem One: 22 Solution Using Long-Term Care Calculator: 23 Example Problem Two: 24 Solution Using Long-Term Care Calculator: 25 Example Problem Three: 25.1 Solution Using the Long-Term Care Calculator: 25.2 Example Problem One: 26 Solution Using Long-Term Care Calculator: 27 Example Problem Two: 28 Solution Using Long-Term Care Calculator: 29 Example Problem Three: 29.1 Solution Using the Long-Term Care Calculator: 29.2 Example Problem One: 30 Solution Using Long-Term Care Calculator: 31 Example Problem Two: 32 Solution Using Long-Term Care Calculator: 33 Example Problem Three: 33.1 Solution Using the Long-Term Care Calculator: 33.2 Example Problem One: 34 Solution Using Long-Term Care Calculator: 35 Example Problem Two: 36 Solution Using Long-Term Care Calculator: 37 Example Problem Three: 37.1 Solution Using the Long-Term Care Calculator: 37.2 Example Problem One: 38 Solution Using Long-Term Care Calculator: 39 Example Problem Two: 40 Solution Using Long-Term Care Calculator: 41 Example Problem Three: 41.1 Solution Using the Long-Term Care Calculator: 41.2 Example Problem One: 42 Solution Using Long-Term Care Calculator: 43 Example Problem Two: 44 Solution Using Long-Term Care Calculator: 45 Example Problem Three: 45.1 Solution Using the Long-Term Care Calculator: 45.2 Example Problem One: 46 Solution Using Long-Term Care Calculator: 47 Example Problem Two: 48 Solution Using Long-Term Care Calculator: 49 Example Problem Three: 49.1 Solution Using the Long-Term Care Calculator: 49.2 Example Problem One: 50 Solution Using Long-Term Care Calculator: 51 Example Problem Two: 52 Solution Using Long-Term Care Calculator: 53 Example Problem Three: 53.1 Solution Using the Long-Term Care Calculator: 53.2 Example Problem One: 54 Solution Using Long-Term Care Calculator: 55 Example Problem Two: 56 Solution Using Long-Term Care Calculator: 57 Example Problem Three: 57.1 Solution Using the Long-Term Care Calculator: 57.2 Example Problem One: 58 Solution Using Long-Term Care Calculator: 59 Example Problem Two: 60 Solution Using Long-Term Care Calculator: 61 Example Problem Three: 61.1 Solution Using the Long-Term Care Calculator: 61.2 Example Problem One: 62 Solution Using Long-Term Care Calculator: 63 Example Problem Two: 64 Solution Using Long-Term Care Calculator: 65 Example Problem Three: 65.1 Solution Using the Long-Term Care Calculator: 65.2 Example Problem One: 66 Solution Using Long-Term Care Calculator: 67 Example Problem Two: 68 Solution Using Long-Term Care Calculator: 69 Example Problem Three: 69.1 Solution Using the Long-Term Care Calculator: Example Problem One: Marc is 40-years old and wants to assume that when he is 80-years old he will have to fund home care expenses of $1500 per month, and when he is 85-years old he will have to fund facility care expenses of $4000 per month. The other assumptions for Marc are below: Retire By: 58 Mortality: 90 Inflation: 3% Return: 8% Marginal Tax Rate: 35% Percentage to Insure: 50% How much money would Marc need today if he elected to self-insurance these long-term care expenses? How much would he have to save? Solution Using Long-Term Care Calculator: Length: 2min 49 sec Select the Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field 2. In the Retire By field enter age 58 3. In the Mortality field enter age 90 4. Leave the Inflation assumption at the default of 3% 5. Change the Return assumption to 8% 6. Set the Marginal Tax Rate to 35% 7. Leave the Percentage to Insure option at the default of 50% Note: This percentage does not affect the calculations, but will allow you to see the results listed below if Marc chose to purchase insurance to cover half of the costs, and self-insure the rest. 8. Under Home Care Coverage: set the Estimated Costs/Month to $1500, and the Starting Age to age 80 as he indicated. 9. Under Facility Care Coverage, set the Estimated Costs/Month to $4000, and the Starting Age to age 85. 10. Click the button underneath the results section. 11. Identify the Present Value of Capital required under the Self-Insured option – in this case $135,631. This represents the money the client would need today to cover the long- term care expenses himself. 12. Identify the Indexed Savings to Fund Difference required under the Self-Insured option – in this case $9430. This represents the money the client would need to save annually (indexed with inflation) to cover the long-term care expenses himself. To View the Long-Term Care Report: Click on the View Report button to view a summary report of data input and calculated insurance coverage required. Length: 3min 04 sec Example Problem Two: Annabelle is 40-years old and wants to be able to fund facility care coverage of $3000 per month starting at her age 75. She does not want to cover home care expenses at any point. The rest of her assumptions are listed below: Retire By: 55 Mortality: 90 Inflation: 4% Return: 10% Marginal Tax Rate: 30% Percentage to Insure: 50% How much would your client have to save annually in order to fund the facility care coverage? Solution Using Long-Term Care Calculator: Select Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field. 2. In the Retire By field enter age 55 3. In the Mortality field enter 90 4. Change the Inflation assumption to 4% 5. Set the Return assumption to 10% 6. Set the Marginal Tax Rate to 30% 7. Leave the Percentage to Insure option at 50% 8. Under Home Care Coverage, set the Estimated Costs/Month to $0, and the Starting Age can remain at the default. 9. Under Facility Care Coverage, set the Estimated Costs/Month to $3000, and the Starting Age to age 75. 10. Click the button underneath the results section. Under the Results section, she would have to make Indexed Savings to Fund Difference of $14007 until her retirement to fund these facility expenses herself. Example Problem Three: You have clients for which you have already completed the life planning process flow, who now want to see if they have a shortfall in the event of critical illness. They want to plan to fund home care costs at their age 70, for about $2,000 each month. Upon age 80, they will move to a proper nursing facility with a monthly cost of $4,000. Solution Using the Long-Term Care Calculator: After you set the Scenario to the client’s Long-Term Care, the following data entry fields will be automatically updated: Current Age, Retire By, Mortality, Inflation and Rate of Return. Leave the Marginal Tax Rate at the default or enter an assumption you feel is more appropriate. Leave the Percentage to Insure option at to 50% Under Home Care Coverage, set the Estimated Costs/Month to $2,000, and the Starting Age can be set to 70. Under Facility Care Coverage, set the Estimated Costs/Month to $4,000, and the Starting Age to age 80. Click Calculate Also click Save once the calculations are complete. Repeat these steps for the spouse since her scenario is exactly the same.

United States of America

The Long-Term Care Calculator helps you identify the amount of Long-Term Care insurance that may be required to protect your client’s estate from the erosion caused by long- term care expenses. The calculations allow you to see the future value and present value of the erosion caused with no coverage and with coverage of a specified percentage. It also shows how estate erosion can be totally eliminated with 100% coverage. This calculator takes into consideration both a period of home care and a period of facility care starting at the ages you select. If you want to pre-populate this calculator with information from the Client Data Entry screens, you must have entered the Personal Information for your client, as well as completed the Asset Allocation screen. This will override any defaults in the Age, Retire By, Mortality, Inflation Assumption and Return fields. Example Problem One: Marc is 40-years old and wants to assume that when he is 80-years old he will have to fund home care expenses of $1500 per month, and when he is 85-years old he will have to fund facility care expenses of $4000 per month. The other assumptions for Marc are below: Retire By: 58 Mortality: 90 Inflation: 3% Return: 8% Marginal Tax Rate: 35% Percentage to Insure: 50% How much money would Marc need today if he elected to self-insurance these long-term care expenses? How much would he have to save? Solution Using Long-Term Care Calculator: Length: 2min 49 sec Select the Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field 2. In the Retire By field enter age 58 3. In the Mortality field enter age 90 4. Leave the Inflation assumption at the default of 3% 5. Change the Return assumption to 8% 6. Set the Marginal Tax Rate to 35% 7. Leave the Percentage to Insure option at the default of 50% Note: This percentage does not affect the calculations, but will allow you to see the results listed below if Marc chose to purchase insurance to cover half of the costs, and self-insure the rest. 8. Under Home Care Coverage: set the Estimated Costs/Month to $1500, and the Starting Age to age 80 as he indicated. 9. Under Facility Care Coverage, set the Estimated Costs/Month to $4000, and the Starting Age to age 85. 10. Click the button underneath the results section. 11. Identify the Present Value of Capital required under the Self-Insured option – in this case $135,631. This represents the money the client would need today to cover the long- term care expenses himself. 12. Identify the Indexed Savings to Fund Difference required under the Self-Insured option – in this case $9430. This represents the money the client would need to save annually (indexed with inflation) to cover the long-term care expenses himself. To View the Long-Term Care Report: Click on the View Report button to view a summary report of data input and calculated insurance coverage required. Length: 3min 04 sec Example Problem Two: Annabelle is 40-years old and wants to be able to fund facility care coverage of $3000 per month starting at her age 75. She does not want to cover home care expenses at any point. The rest of her assumptions are listed below: Retire By: 55 Mortality: 90 Inflation: 4% Return: 10% Marginal Tax Rate: 30% Percentage to Insure: 50% How much would your client have to save annually in order to fund the facility care coverage? Solution Using Long-Term Care Calculator: Select Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field. 2. In the Retire By field enter age 55 3. In the Mortality field enter 90 4. Change the Inflation assumption to 4% 5. Set the Return assumption to 10% 6. Set the Marginal Tax Rate to 30% 7. Leave the Percentage to Insure option at 50% 8. Under Home Care Coverage, set the Estimated Costs/Month to $0, and the Starting Age can remain at the default. 9. Under Facility Care Coverage, set the Estimated Costs/Month to $3000, and the Starting Age to age 75. 10. Click the button underneath the results section. Under the Results section, she would have to make Indexed Savings to Fund Difference of $14007 until her retirement to fund these facility expenses herself. Example Problem Three: You have clients for which you have already completed the life planning process flow, who now want to see if they have a shortfall in the event of critical illness. They want to plan to fund home care costs at their age 70, for about $2,000 each month. Upon age 80, they will move to a proper nursing facility with a monthly cost of $4,000. Solution Using the Long-Term Care Calculator: After you set the Scenario to the client’s Long-Term Care, the following data entry fields will be automatically updated: Current Age, Retire By, Mortality, Inflation and Rate of Return. Leave the Marginal Tax Rate at the default or enter an assumption you feel is more appropriate. Leave the Percentage to Insure option at to 50% Under Home Care Coverage, set the Estimated Costs/Month to $2,000, and the Starting Age can be set to 70. Under Facility Care Coverage, set the Estimated Costs/Month to $4,000, and the Starting Age to age 80. Click Calculate Also click Save once the calculations are complete. Repeat these steps for the spouse since her scenario is exactly the same.

Argentina

The Long-Term Care Calculator helps you identify the amount of Long-Term Care insurance that may be required to protect your client’s estate from the erosion caused by long- term care expenses. The calculations allow you to see the future value and present value of the erosion caused with no coverage and with coverage of a specified percentage. It also shows how estate erosion can be totally eliminated with 100% coverage. This calculator takes into consideration both a period of home care and a period of facility care starting at the ages you select. If you want to pre-populate this calculator with information from the Client Data Entry screens, you must have entered the Personal Information for your client, as well as completed the Asset Allocation screen. This will override any defaults in the Age, Retire By, Mortality, Inflation Assumption and Return fields. Example Problem One: Marc is 40-years old and wants to assume that when he is 80-years old he will have to fund home care expenses of $1500 per month, and when he is 85-years old he will have to fund facility care expenses of $4000 per month. The other assumptions for Marc are below: Retire By: 58 Mortality: 90 Inflation: 3% Return: 8% Marginal Tax Rate: 35% Percentage to Insure: 50% How much money would Marc need today if he elected to self-insurance these long-term care expenses? How much would he have to save? Solution Using Long-Term Care Calculator: Length: 2min 49 sec Select the Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field 2. In the Retire By field enter age 58 3. In the Mortality field enter age 90 4. Leave the Inflation assumption at the default of 3% 5. Change the Return assumption to 8% 6. Set the Marginal Tax Rate to 35% 7. Leave the Percentage to Insure option at the default of 50% Note: This percentage does not affect the calculations, but will allow you to see the results listed below if Marc chose to purchase insurance to cover half of the costs, and self-insure the rest. 8. Under Home Care Coverage: set the Estimated Costs/Month to $1500, and the Starting Age to age 80 as he indicated. 9. Under Facility Care Coverage, set the Estimated Costs/Month to $4000, and the Starting Age to age 85. 10. Click the button underneath the results section. 11. Identify the Present Value of Capital required under the Self-Insured option – in this case $135,631. This represents the money the client would need today to cover the long- term care expenses himself. 12. Identify the Indexed Savings to Fund Difference required under the Self-Insured option – in this case $9430. This represents the money the client would need to save annually (indexed with inflation) to cover the long-term care expenses himself. To View the Long-Term Care Report: Click on the View Report button to view a summary report of data input and calculated insurance coverage required. Length: 3min 04 sec Example Problem Two: Annabelle is 40-years old and wants to be able to fund facility care coverage of $3000 per month starting at her age 75. She does not want to cover home care expenses at any point. The rest of her assumptions are listed below: Retire By: 55 Mortality: 90 Inflation: 4% Return: 10% Marginal Tax Rate: 30% Percentage to Insure: 50% How much would your client have to save annually in order to fund the facility care coverage? Solution Using Long-Term Care Calculator: Select Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field. 2. In the Retire By field enter age 55 3. In the Mortality field enter 90 4. Change the Inflation assumption to 4% 5. Set the Return assumption to 10% 6. Set the Marginal Tax Rate to 30% 7. Leave the Percentage to Insure option at 50% 8. Under Home Care Coverage, set the Estimated Costs/Month to $0, and the Starting Age can remain at the default. 9. Under Facility Care Coverage, set the Estimated Costs/Month to $3000, and the Starting Age to age 75. 10. Click the button underneath the results section. Under the Results section, she would have to make Indexed Savings to Fund Difference of $14007 until her retirement to fund these facility expenses herself. Example Problem Three: You have clients for which you have already completed the life planning process flow, who now want to see if they have a shortfall in the event of critical illness. They want to plan to fund home care costs at their age 70, for about $2,000 each month. Upon age 80, they will move to a proper nursing facility with a monthly cost of $4,000. Solution Using the Long-Term Care Calculator: After you set the Scenario to the client’s Long-Term Care, the following data entry fields will be automatically updated: Current Age, Retire By, Mortality, Inflation and Rate of Return. Leave the Marginal Tax Rate at the default or enter an assumption you feel is more appropriate. Leave the Percentage to Insure option at to 50% Under Home Care Coverage, set the Estimated Costs/Month to $2,000, and the Starting Age can be set to 70. Under Facility Care Coverage, set the Estimated Costs/Month to $4,000, and the Starting Age to age 80. Click Calculate Also click Save once the calculations are complete. Repeat these steps for the spouse since her scenario is exactly the same.

Brazil

The Long-Term Care Calculator helps you identify the amount of Long-Term Care insurance that may be required to protect your client’s estate from the erosion caused by long- term care expenses. The calculations allow you to see the future value and present value of the erosion caused with no coverage and with coverage of a specified percentage. It also shows how estate erosion can be totally eliminated with 100% coverage. This calculator takes into consideration both a period of home care and a period of facility care starting at the ages you select. If you want to pre-populate this calculator with information from the Client Data Entry screens, you must have entered the Personal Information for your client, as well as completed the Asset Allocation screen. This will override any defaults in the Age, Retire By, Mortality, Inflation Assumption and Return fields. Example Problem One: Marc is 40-years old and wants to assume that when he is 80-years old he will have to fund home care expenses of $1500 per month, and when he is 85-years old he will have to fund facility care expenses of $4000 per month. The other assumptions for Marc are below: Retire By: 58 Mortality: 90 Inflation: 3% Return: 8% Marginal Tax Rate: 35% Percentage to Insure: 50% How much money would Marc need today if he elected to self-insurance these long-term care expenses? How much would he have to save? Solution Using Long-Term Care Calculator: Length: 2min 49 sec Select the Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field 2. In the Retire By field enter age 58 3. In the Mortality field enter age 90 4. Leave the Inflation assumption at the default of 3% 5. Change the Return assumption to 8% 6. Set the Marginal Tax Rate to 35% 7. Leave the Percentage to Insure option at the default of 50% Note: This percentage does not affect the calculations, but will allow you to see the results listed below if Marc chose to purchase insurance to cover half of the costs, and self-insure the rest. 8. Under Home Care Coverage: set the Estimated Costs/Month to $1500, and the Starting Age to age 80 as he indicated. 9. Under Facility Care Coverage, set the Estimated Costs/Month to $4000, and the Starting Age to age 85. 10. Click the button underneath the results section. 11. Identify the Present Value of Capital required under the Self-Insured option – in this case $135,631. This represents the money the client would need today to cover the long- term care expenses himself. 12. Identify the Indexed Savings to Fund Difference required under the Self-Insured option – in this case $9430. This represents the money the client would need to save annually (indexed with inflation) to cover the long-term care expenses himself. To View the Long-Term Care Report: Click on the View Report button to view a summary report of data input and calculated insurance coverage required. Length: 3min 04 sec Example Problem Two: Annabelle is 40-years old and wants to be able to fund facility care coverage of $3000 per month starting at her age 75. She does not want to cover home care expenses at any point. The rest of her assumptions are listed below: Retire By: 55 Mortality: 90 Inflation: 4% Return: 10% Marginal Tax Rate: 30% Percentage to Insure: 50% How much would your client have to save annually in order to fund the facility care coverage? Solution Using Long-Term Care Calculator: Select Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field. 2. In the Retire By field enter age 55 3. In the Mortality field enter 90 4. Change the Inflation assumption to 4% 5. Set the Return assumption to 10% 6. Set the Marginal Tax Rate to 30% 7. Leave the Percentage to Insure option at 50% 8. Under Home Care Coverage, set the Estimated Costs/Month to $0, and the Starting Age can remain at the default. 9. Under Facility Care Coverage, set the Estimated Costs/Month to $3000, and the Starting Age to age 75. 10. Click the button underneath the results section. Under the Results section, she would have to make Indexed Savings to Fund Difference of $14007 until her retirement to fund these facility expenses herself. Example Problem Three: You have clients for which you have already completed the life planning process flow, who now want to see if they have a shortfall in the event of critical illness. They want to plan to fund home care costs at their age 70, for about $2,000 each month. Upon age 80, they will move to a proper nursing facility with a monthly cost of $4,000. Solution Using the Long-Term Care Calculator: After you set the Scenario to the client’s Long-Term Care, the following data entry fields will be automatically updated: Current Age, Retire By, Mortality, Inflation and Rate of Return. Leave the Marginal Tax Rate at the default or enter an assumption you feel is more appropriate. Leave the Percentage to Insure option at to 50% Under Home Care Coverage, set the Estimated Costs/Month to $2,000, and the Starting Age can be set to 70. Under Facility Care Coverage, set the Estimated Costs/Month to $4,000, and the Starting Age to age 80. Click Calculate Also click Save once the calculations are complete. Repeat these steps for the spouse since her scenario is exactly the same.

United Kingdom

The Long-Term Care Calculator helps you identify the amount of Long-Term Care insurance that may be required to protect your client’s estate from the erosion caused by long- term care expenses. The calculations allow you to see the future value and present value of the erosion caused with no coverage and with coverage of a specified percentage. It also shows how estate erosion can be totally eliminated with 100% coverage. This calculator takes into consideration both a period of home care and a period of facility care starting at the ages you select. If you want to pre-populate this calculator with information from the Client Data Entry screens, you must have entered the Personal Information for your client, as well as completed the Asset Allocation screen. This will override any defaults in the Age, Retire By, Mortality, Inflation Assumption and Return fields. Example Problem One: Marc is 40-years old and wants to assume that when he is 80-years old he will have to fund home care expenses of £1500 per month, and when he is 85-years old he will have to fund facility care expenses of £4000 per month. The other assumptions for Marc are below: Retire By: 58 Mortality: 90 Inflation: 3% Return: 8% Marginal Tax Rate: 35% Percentage to Insure: 50% How much money would Marc need today if he elected to self-insurance these long-term care expenses? How much would he have to save? Solution Using Long-Term Care Calculator: Length: 2min 49 sec Select the Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field 2. In the Retire By field enter age 58 3. In the Mortality field enter age 90 4. Leave the Inflation assumption at the default of 3% 5. Change the Return assumption to 8% 6. Set the Marginal Tax Rate to 35% 7. Leave the Percentage to Insure option at the default of 50% Note: This percentage does not affect the calculations, but will allow you to see the results listed below if Marc chose to purchase insurance to cover half of the costs, and self-insure the rest. 8. Under Home Care Coverage: set the Estimated Costs/Month to £1500, and the Starting Age to age 80 as he indicated. 9. Under Facility Care Coverage, set the Estimated Costs/Month to £4000, and the Starting Age to age 85. 10. Click the button underneath the results section. 11. Identify the Present Value of Capital required under the Self-Insured option – in this case £135,631. This represents the money the client would need today to cover the long- term care expenses himself. 12. Identify the Indexed Savings to Fund Difference required under the Self-Insured option – in this case £9430. This represents the money the client would need to save annually (indexed with inflation) to cover the long-term care expenses himself. To View the Long-Term Care Report: Click on the View Report button to view a summary report of data input and calculated insurance coverage required. Length: 3min 04 sec Example Problem Two: Annabelle is 40-years old and wants to be able to fund facility care coverage of £3000 per month starting at her age 75. She does not want to cover home care expenses at any point. The rest of her assumptions are listed below: Retire By: 55 Mortality: 90 Inflation: 4% Return: 10% Marginal Tax Rate: 30% Percentage to Insure: 50% How much would your client have to save annually in order to fund the facility care coverage? Solution Using Long-Term Care Calculator: Select Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field. 2. In the Retire By field enter age 55 3. In the Mortality field enter 90 4. Change the Inflation assumption to 4% 5. Set the Return assumption to 10% 6. Set the Marginal Tax Rate to 30% 7. Leave the Percentage to Insure option at 50% 8. Under Home Care Coverage, set the Estimated Costs/Month to $0, and the Starting Age can remain at the default. 9. Under Facility Care Coverage, set the Estimated Costs/Month to £3000, and the Starting Age to age 75. 10. Click the button underneath the results section. Under the Results section, she would have to make Indexed Savings to Fund Difference of $14007 until her retirement to fund these facility expenses herself. Example Problem Three: You have clients for which you have already completed the life planning process flow, who now want to see if they have a shortfall in the event of critical illness. They want to plan to fund home care costs at their age 70, for about £2,000 each month. Upon age 80, they will move to a proper nursing facility with a monthly cost of £4,000. Solution Using the Long-Term Care Calculator: After you set the Scenario to the client’s Long-Term Care, the following data entry fields will be automatically updated: Current Age, Retire By, Mortality, Inflation and Rate of Return. Leave the Marginal Tax Rate at the default or enter an assumption you feel is more appropriate. Leave the Percentage to Insure option at to 50% Under Home Care Coverage, set the Estimated Costs/Month to £2,000, and the Starting Age can be set to 70. Under Facility Care Coverage, set the Estimated Costs/Month to £4,000, and the Starting Age to age 80. Click Calculate Also click Save once the calculations are complete. Repeat these steps for the spouse since her scenario is exactly the same.

Russia

The Long-Term Care Calculator helps you identify the amount of Long-Term Care insurance that may be required to protect your client’s estate from the erosion caused by long- term care expenses. The calculations allow you to see the future value and present value of the erosion caused with no coverage and with coverage of a specified percentage. It also shows how estate erosion can be totally eliminated with 100% coverage. This calculator takes into consideration both a period of home care and a period of facility care starting at the ages you select. If you want to pre-populate this calculator with information from the Client Data Entry screens, you must have entered the Personal Information for your client, as well as completed the Asset Allocation screen. This will override any defaults in the Age, Retire By, Mortality, Inflation Assumption and Return fields. Example Problem One: Marc is 40-years old and wants to assume that when he is 80-years old he will have to fund home care expenses of R1500 per month, and when he is 85-years old he will have to fund facility care expenses of R4000 per month. The other assumptions for Marc are below: Retire By: 58 Mortality: 90 Inflation: 3% Return: 8% Marginal Tax Rate: 35% Percentage to Insure: 50% How much money would Marc need today if he elected to self-insurance these long-term care expenses? How much would he have to save? Solution Using Long-Term Care Calculator: Length: 2min 49 sec Select the Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field 2. In the Retire By field enter age 58 3. In the Mortality field enter age 90 4. Leave the Inflation assumption at the default of 3% 5. Change the Return assumption to 8% 6. Set the Marginal Tax Rate to 35% 7. Leave the Percentage to Insure option at the default of 50% Note: This percentage does not affect the calculations, but will allow you to see the results listed below if Marc chose to purchase insurance to cover half of the costs, and self-insure the rest. 8. Under Home Care Coverage: set the Estimated Costs/Month to R1500, and the Starting Age to age 80 as he indicated. 9. Under Facility Care Coverage, set the Estimated Costs/Month to R4000, and the Starting Age to age 85. 10. Click the button underneath the results section. 11. Identify the Present Value of Capital required under the Self-Insured option – in this case R135,631. This represents the money the client would need today to cover the long- term care expenses himself. 12. Identify the Indexed Savings to Fund Difference required under the Self-Insured option – in this case R9430. This represents the money the client would need to save annually (indexed with inflation) to cover the long-term care expenses himself. To View the Long-Term Care Report: Click on the View Report button to view a summary report of data input and calculated insurance coverage required. Length: 3min 04 sec Example Problem Two: Annabelle is 40-years old and wants to be able to fund facility care coverage of R3000 per month starting at her age 75. She does not want to cover home care expenses at any point. The rest of her assumptions are listed below: Retire By: 55 Mortality: 90 Inflation: 4% Return: 10% Marginal Tax Rate: 30% Percentage to Insure: 50% How much would your client have to save annually in order to fund the facility care coverage? Solution Using Long-Term Care Calculator: Select Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field. 2. In the Retire By field enter age 55 3. In the Mortality field enter 90 4. Change the Inflation assumption to 4% 5. Set the Return assumption to 10% 6. Set the Marginal Tax Rate to 30% 7. Leave the Percentage to Insure option at 50% 8. Under Home Care Coverage, set the Estimated Costs/Month to $0, and the Starting Age can remain at the default. 9. Under Facility Care Coverage, set the Estimated Costs/Month to R3000, and the Starting Age to age 75. 10. Click the button underneath the results section. Under the Results section, she would have to make Indexed Savings to Fund Difference of $14007 until her retirement to fund these facility expenses herself. Example Problem Three: You have clients for which you have already completed the life planning process flow, who now want to see if they have a shortfall in the event of critical illness. They want to plan to fund home care costs at their age 70, for about R2,000 each month. Upon age 80, they will move to a proper nursing facility with a monthly cost of R4,000. Solution Using the Long-Term Care Calculator: After you set the Scenario to the client’s Long-Term Care, the following data entry fields will be automatically updated: Current Age, Retire By, Mortality, Inflation and Rate of Return. Leave the Marginal Tax Rate at the default or enter an assumption you feel is more appropriate. Leave the Percentage to Insure option at to 50% Under Home Care Coverage, set the Estimated Costs/Month to R2,000, and the Starting Age can be set to 70. Under Facility Care Coverage, set the Estimated Costs/Month to R4,000, and the Starting Age to age 80. Click Calculate Also click Save once the calculations are complete. Repeat these steps for the spouse since her scenario is exactly the same.

China

The Long-Term Care Calculator helps you identify the amount of Long-Term Care insurance that may be required to protect your client’s estate from the erosion caused by long- term care expenses. The calculations allow you to see the future value and present value of the erosion caused with no coverage and with coverage of a specified percentage. It also shows how estate erosion can be totally eliminated with 100% coverage. This calculator takes into consideration both a period of home care and a period of facility care starting at the ages you select. If you want to pre-populate this calculator with information from the Client Data Entry screens, you must have entered the Personal Information for your client, as well as completed the Asset Allocation screen. This will override any defaults in the Age, Retire By, Mortality, Inflation Assumption and Return fields. Example Problem One: Marc is 40-years old and wants to assume that when he is 80-years old he will have to fund home care expenses of ¥1500 per month, and when he is 85-years old he will have to fund facility care expenses of ¥4000 per month. The other assumptions for Marc are below: Retire By: 58 Mortality: 90 Inflation: 3% Return: 8% Marginal Tax Rate: 35% Percentage to Insure: 50% How much money would Marc need today if he elected to self-insurance these long-term care expenses? How much would he have to save? Solution Using Long-Term Care Calculator: Length: 2min 49 sec Select the Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field 2. In the Retire By field enter age 58 3. In the Mortality field enter age 90 4. Leave the Inflation assumption at the default of 3% 5. Change the Return assumption to 8% 6. Set the Marginal Tax Rate to 35% 7. Leave the Percentage to Insure option at the default of 50% Note: This percentage does not affect the calculations, but will allow you to see the results listed below if Marc chose to purchase insurance to cover half of the costs, and self-insure the rest. 8. Under Home Care Coverage: set the Estimated Costs/Month to ¥1500, and the Starting Age to age 80 as he indicated. 9. Under Facility Care Coverage, set the Estimated Costs/Month to ¥4000, and the Starting Age to age 85. 10. Click the button underneath the results section. 11. Identify the Present Value of Capital required under the Self-Insured option – in this case ¥135,631. This represents the money the client would need today to cover the long- term care expenses himself. 12. Identify the Indexed Savings to Fund Difference required under the Self-Insured option – in this case $9430. This represents the money the client would need to save annually (indexed with inflation) to cover the long-term care expenses himself. To View the Long-Term Care Report: Click on the View Report button to view a summary report of data input and calculated insurance coverage required. Length: 3min 04 sec Example Problem Two: Annabelle is 40-years old and wants to be able to fund facility care coverage of ¥3000 per month starting at her age 75. She does not want to cover home care expenses at any point. The rest of her assumptions are listed below: Retire By: 55 Mortality: 90 Inflation: 4% Return: 10% Marginal Tax Rate: 30% Percentage to Insure: 50% How much would your client have to save annually in order to fund the facility care coverage? Solution Using Long-Term Care Calculator: Select Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field. 2. In the Retire By field enter age 55 3. In the Mortality field enter 90 4. Change the Inflation assumption to 4% 5. Set the Return assumption to 10% 6. Set the Marginal Tax Rate to 30% 7. Leave the Percentage to Insure option at 50% 8. Under Home Care Coverage, set the Estimated Costs/Month to $0, and the Starting Age can remain at the default. 9. Under Facility Care Coverage, set the Estimated Costs/Month to ¥3000, and the Starting Age to age 75. 10. Click the button underneath the results section. Under the Results section, she would have to make Indexed Savings to Fund Difference of $14007 until her retirement to fund these facility expenses herself. Example Problem Three: You have clients for which you have already completed the life planning process flow, who now want to see if they have a shortfall in the event of critical illness. They want to plan to fund home care costs at their age 70, for about ¥2,000 each month. Upon age 80, they will move to a proper nursing facility with a monthly cost of ¥4,000. Solution Using the Long-Term Care Calculator: After you set the Scenario to the client’s Long-Term Care, the following data entry fields will be automatically updated: Current Age, Retire By, Mortality, Inflation and Rate of Return. Leave the Marginal Tax Rate at the default or enter an assumption you feel is more appropriate. Leave the Percentage to Insure option at to 50% Under Home Care Coverage, set the Estimated Costs/Month to ¥2,000, and the Starting Age can be set to 70. Under Facility Care Coverage, set the Estimated Costs/Month to ¥4,000, and the Starting Age to age 80. Click Calculate Also click Save once the calculations are complete. Repeat these steps for the spouse since her scenario is exactly the same.

Malaysia

The Long-Term Care Calculator helps you identify the amount of Long-Term Care insurance that may be required to protect your client’s estate from the erosion caused by long- term care expenses. The calculations allow you to see the future value and present value of the erosion caused with no coverage and with coverage of a specified percentage. It also shows how estate erosion can be totally eliminated with 100% coverage. This calculator takes into consideration both a period of home care and a period of facility care starting at the ages you select. If you want to pre-populate this calculator with information from the Client Data Entry screens, you must have entered the Personal Information for your client, as well as completed the Asset Allocation screen. This will override any defaults in the Age, Retire By, Mortality, Inflation Assumption and Return fields. Example Problem One: Marc is 40-years old and wants to assume that when he is 80-years old he will have to fund home care expenses of RM1500 per month, and when he is 85-years old he will have to fund facility care expenses of RM4000 per month. The other assumptions for Marc are below: Retire By: 58 Mortality: 90 Inflation: 3% Return: 8% Marginal Tax Rate: 35% Percentage to Insure: 50% How much money would Marc need today if he elected to self-insurance these long-term care expenses? How much would he have to save? Solution Using Long-Term Care Calculator: Length: 2min 49 sec Select the Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field 2. In the Retire By field enter age 58 3. In the Mortality field enter age 90 4. Leave the Inflation assumption at the default of 3% 5. Change the Return assumption to 8% 6. Set the Marginal Tax Rate to 35% 7. Leave the Percentage to Insure option at the default of 50% Note: This percentage does not affect the calculations, but will allow you to see the results listed below if Marc chose to purchase insurance to cover half of the costs, and self-insure the rest. 8. Under Home Care Coverage: set the Estimated Costs/Month to RM1500, and the Starting Age to age 80 as he indicated. 9. Under Facility Care Coverage, set the Estimated Costs/Month to RM4000, and the Starting Age to age 85. 10. Click the button underneath the results section. 11. Identify the Present Value of Capital required under the Self-Insured option – in this case RM135,631. This represents the money the client would need today to cover the long- term care expenses himself. 12. Identify the Indexed Savings to Fund Difference required under the Self-Insured option – in this case RM9430. This represents the money the client would need to save annually (indexed with inflation) to cover the long-term care expenses himself. To View the Long-Term Care Report: Click on the View Report button to view a summary report of data input and calculated insurance coverage required. Length: 3min 04 sec Example Problem Two: Annabelle is 40-years old and wants to be able to fund facility care coverage of RM3000 per month starting at her age 75. She does not want to cover home care expenses at any point. The rest of her assumptions are listed below: Retire By: 55 Mortality: 90 Inflation: 4% Return: 10% Marginal Tax Rate: 30% Percentage to Insure: 50% How much would your client have to save annually in order to fund the facility care coverage? Solution Using Long-Term Care Calculator: Select Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field. 2. In the Retire By field enter age 55 3. In the Mortality field enter 90 4. Change the Inflation assumption to 4% 5. Set the Return assumption to 10% 6. Set the Marginal Tax Rate to 30% 7. Leave the Percentage to Insure option at 50% 8. Under Home Care Coverage, set the Estimated Costs/Month to $0, and the Starting Age can remain at the default. 9. Under Facility Care Coverage, set the Estimated Costs/Month to RM3000, and the Starting Age to age 75. 10. Click the button underneath the results section. Under the Results section, she would have to make Indexed Savings to Fund Difference of RM14007 until her retirement to fund these facility expenses herself. Example Problem Three: You have clients for which you have already completed the life planning process flow, who now want to see if they have a shortfall in the event of critical illness. They want to plan to fund home care costs at their age 70, for about RM2,000 each month. Upon age 80, they will move to a proper nursing facility with a monthly cost of RM4,000. Solution Using the Long-Term Care Calculator: After you set the Scenario to the client’s Long-Term Care, the following data entry fields will be automatically updated: Current Age, Retire By, Mortality, Inflation and Rate of Return. Leave the Marginal Tax Rate at the default or enter an assumption you feel is more appropriate. Leave the Percentage to Insure option at to 50% Under Home Care Coverage, set the Estimated Costs/Month to RM2,000, and the Starting Age can be set to 70. Under Facility Care Coverage, set the Estimated Costs/Month to RM4,000, and the Starting Age to age 80. Click Calculate Also click Save once the calculations are complete. Repeat these steps for the spouse since her scenario is exactly the same.

Singapore

The Long-Term Care Calculator helps you identify the amount of Long-Term Care insurance that may be required to protect your client’s estate from the erosion caused by long- term care expenses. The calculations allow you to see the future value and present value of the erosion caused with no coverage and with coverage of a specified percentage. It also shows how estate erosion can be totally eliminated with 100% coverage. This calculator takes into consideration both a period of home care and a period of facility care starting at the ages you select. If you want to pre-populate this calculator with information from the Client Data Entry screens, you must have entered the Personal Information for your client, as well as completed the Asset Allocation screen. This will override any defaults in the Age, Retire By, Mortality, Inflation Assumption and Return fields. Example Problem One: Marc is 40-years old and wants to assume that when he is 80-years old he will have to fund home care expenses of $1500 per month, and when he is 85-years old he will have to fund facility care expenses of $4000 per month. The other assumptions for Marc are below: Retire By: 58 Mortality: 90 Inflation: 3% Return: 8% Marginal Tax Rate: 35% Percentage to Insure: 50% How much money would Marc need today if he elected to self-insurance these long-term care expenses? How much would he have to save? Solution Using Long-Term Care Calculator: Length: 2min 49 sec Select the Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field 2. In the Retire By field enter age 58 3. In the Mortality field enter age 90 4. Leave the Inflation assumption at the default of 3% 5. Change the Return assumption to 8% 6. Set the Marginal Tax Rate to 35% 7. Leave the Percentage to Insure option at the default of 50% Note: This percentage does not affect the calculations, but will allow you to see the results listed below if Marc chose to purchase insurance to cover half of the costs, and self-insure the rest. 8. Under Home Care Coverage: set the Estimated Costs/Month to $1500, and the Starting Age to age 80 as he indicated. 9. Under Facility Care Coverage, set the Estimated Costs/Month to $4000, and the Starting Age to age 85. 10. Click the button underneath the results section. 11. Identify the Present Value of Capital required under the Self-Insured option – in this case $135,631. This represents the money the client would need today to cover the long- term care expenses himself. 12. Identify the Indexed Savings to Fund Difference required under the Self-Insured option – in this case $9430. This represents the money the client would need to save annually (indexed with inflation) to cover the long-term care expenses himself. To View the Long-Term Care Report: Click on the View Report button to view a summary report of data input and calculated insurance coverage required. Length: 3min 04 sec Example Problem Two: Annabelle is 40-years old and wants to be able to fund facility care coverage of $3000 per month starting at her age 75. She does not want to cover home care expenses at any point. The rest of her assumptions are listed below: Retire By: 55 Mortality: 90 Inflation: 4% Return: 10% Marginal Tax Rate: 30% Percentage to Insure: 50% How much would your client have to save annually in order to fund the facility care coverage? Solution Using Long-Term Care Calculator: Select Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field. 2. In the Retire By field enter age 55 3. In the Mortality field enter 90 4. Change the Inflation assumption to 4% 5. Set the Return assumption to 10% 6. Set the Marginal Tax Rate to 30% 7. Leave the Percentage to Insure option at 50% 8. Under Home Care Coverage, set the Estimated Costs/Month to $0, and the Starting Age can remain at the default. 9. Under Facility Care Coverage, set the Estimated Costs/Month to $3000, and the Starting Age to age 75. 10. Click the button underneath the results section. Under the Results section, she would have to make Indexed Savings to Fund Difference of $14007 until her retirement to fund these facility expenses herself. Example Problem Three: You have clients for which you have already completed the life planning process flow, who now want to see if they have a shortfall in the event of critical illness. They want to plan to fund home care costs at their age 70, for about $2,000 each month. Upon age 80, they will move to a proper nursing facility with a monthly cost of $4,000. Solution Using the Long-Term Care Calculator: After you set the Scenario to the client’s Long-Term Care, the following data entry fields will be automatically updated: Current Age, Retire By, Mortality, Inflation and Rate of Return. Leave the Marginal Tax Rate at the default or enter an assumption you feel is more appropriate. Leave the Percentage to Insure option at to 50% Under Home Care Coverage, set the Estimated Costs/Month to $2,000, and the Starting Age can be set to 70. Under Facility Care Coverage, set the Estimated Costs/Month to $4,000, and the Starting Age to age 80. Click Calculate Also click Save once the calculations are complete. Repeat these steps for the spouse since her scenario is exactly the same.

Hong Kong

The Long-Term Care Calculator helps you identify the amount of Long-Term Care insurance that may be required to protect your client’s estate from the erosion caused by long- term care expenses. The calculations allow you to see the future value and present value of the erosion caused with no coverage and with coverage of a specified percentage. It also shows how estate erosion can be totally eliminated with 100% coverage. This calculator takes into consideration both a period of home care and a period of facility care starting at the ages you select. If you want to pre-populate this calculator with information from the Client Data Entry screens, you must have entered the Personal Information for your client, as well as completed the Asset Allocation screen. This will override any defaults in the Age, Retire By, Mortality, Inflation Assumption and Return fields. Example Problem One: Marc is 40-years old and wants to assume that when he is 80-years old he will have to fund home care expenses of $1500 per month, and when he is 85-years old he will have to fund facility care expenses of $4000 per month. The other assumptions for Marc are below: Retire By: 58 Mortality: 90 Inflation: 3% Return: 8% Marginal Tax Rate: 35% Percentage to Insure: 50% How much money would Marc need today if he elected to self-insurance these long-term care expenses? How much would he have to save? Solution Using Long-Term Care Calculator: Length: 2min 49 sec Select the Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field 2. In the Retire By field enter age 58 3. In the Mortality field enter age 90 4. Leave the Inflation assumption at the default of 3% 5. Change the Return assumption to 8% 6. Set the Marginal Tax Rate to 35% 7. Leave the Percentage to Insure option at the default of 50% Note: This percentage does not affect the calculations, but will allow you to see the results listed below if Marc chose to purchase insurance to cover half of the costs, and self-insure the rest. 8. Under Home Care Coverage: set the Estimated Costs/Month to $1500, and the Starting Age to age 80 as he indicated. 9. Under Facility Care Coverage, set the Estimated Costs/Month to $4000, and the Starting Age to age 85. 10. Click the button underneath the results section. 11. Identify the Present Value of Capital required under the Self-Insured option – in this case $135,631. This represents the money the client would need today to cover the long- term care expenses himself. 12. Identify the Indexed Savings to Fund Difference required under the Self-Insured option – in this case $9430. This represents the money the client would need to save annually (indexed with inflation) to cover the long-term care expenses himself. To View the Long-Term Care Report: Click on the View Report button to view a summary report of data input and calculated insurance coverage required. Length: 3min 04 sec Example Problem Two: Annabelle is 40-years old and wants to be able to fund facility care coverage of $3000 per month starting at her age 75. She does not want to cover home care expenses at any point. The rest of her assumptions are listed below: Retire By: 55 Mortality: 90 Inflation: 4% Return: 10% Marginal Tax Rate: 30% Percentage to Insure: 50% How much would your client have to save annually in order to fund the facility care coverage? Solution Using Long-Term Care Calculator: Select Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field. 2. In the Retire By field enter age 55 3. In the Mortality field enter 90 4. Change the Inflation assumption to 4% 5. Set the Return assumption to 10% 6. Set the Marginal Tax Rate to 30% 7. Leave the Percentage to Insure option at 50% 8. Under Home Care Coverage, set the Estimated Costs/Month to $0, and the Starting Age can remain at the default. 9. Under Facility Care Coverage, set the Estimated Costs/Month to $3000, and the Starting Age to age 75. 10. Click the button underneath the results section. Under the Results section, she would have to make Indexed Savings to Fund Difference of $14007 until her retirement to fund these facility expenses herself. Example Problem Three: You have clients for which you have already completed the life planning process flow, who now want to see if they have a shortfall in the event of critical illness. They want to plan to fund home care costs at their age 70, for about $2,000 each month. Upon age 80, they will move to a proper nursing facility with a monthly cost of $4,000. Solution Using the Long-Term Care Calculator: After you set the Scenario to the client’s Long-Term Care, the following data entry fields will be automatically updated: Current Age, Retire By, Mortality, Inflation and Rate of Return. Leave the Marginal Tax Rate at the default or enter an assumption you feel is more appropriate. Leave the Percentage to Insure option at to 50% Under Home Care Coverage, set the Estimated Costs/Month to $2,000, and the Starting Age can be set to 70. Under Facility Care Coverage, set the Estimated Costs/Month to $4,000, and the Starting Age to age 80. Click Calculate Also click Save once the calculations are complete. Repeat these steps for the spouse since her scenario is exactly the same.

India

The Long-Term Care Calculator helps you identify the amount of Long-Term Care insurance that may be required to protect your client’s estate from the erosion caused by long- term care expenses. The calculations allow you to see the future value and present value of the erosion caused with no coverage and with coverage of a specified percentage. It also shows how estate erosion can be totally eliminated with 100% coverage. This calculator takes into consideration both a period of home care and a period of facility care starting at the ages you select. If you want to pre-populate this calculator with information from the Client Data Entry screens, you must have entered the Personal Information for your client, as well as completed the Asset Allocation screen. This will override any defaults in the Age, Retire By, Mortality, Inflation Assumption and Return fields. Example Problem One: Marc is 40-years old and wants to assume that when he is 80-years old he will have to fund home care expenses of Rs1500 per month, and when he is 85-years old he will have to fund facility care expenses of Rs4000 per month. The other assumptions for Marc are below: Retire By: 58 Mortality: 90 Inflation: 3% Return: 8% Marginal Tax Rate: 35% Percentage to Insure: 50% How much money would Marc need today if he elected to self-insurance these long-term care expenses? How much would he have to save? Solution Using Long-Term Care Calculator: Length: 2min 49 sec Select the Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field 2. In the Retire By field enter age 58 3. In the Mortality field enter age 90 4. Leave the Inflation assumption at the default of 3% 5. Change the Return assumption to 8% 6. Set the Marginal Tax Rate to 35% 7. Leave the Percentage to Insure option at the default of 50% Note: This percentage does not affect the calculations, but will allow you to see the results listed below if Marc chose to purchase insurance to cover half of the costs, and self-insure the rest. 8. Under Home Care Coverage: set the Estimated Costs/Month to Rs1500, and the Starting Age to age 80 as he indicated. 9. Under Facility Care Coverage, set the Estimated Costs/Month to Rs4000, and the Starting Age to age 85. 10. Click the button underneath the results section. 11. Identify the Present Value of Capital required under the Self-Insured option – in this case Rs135,631. This represents the money the client would need today to cover the long- term care expenses himself. 12. Identify the Indexed Savings to Fund Difference required under the Self-Insured option – in this case Rs9430. This represents the money the client would need to save annually (indexed with inflation) to cover the long-term care expenses himself. To View the Long-Term Care Report: Click on the View Report button to view a summary report of data input and calculated insurance coverage required. Length: 3min 04 sec Example Problem Two: Annabelle is 40-years old and wants to be able to fund facility care coverage of Rs3000 per month starting at her age 75. She does not want to cover home care expenses at any point. The rest of her assumptions are listed below: Retire By: 55 Mortality: 90 Inflation: 4% Return: 10% Marginal Tax Rate: 30% Percentage to Insure: 50% How much would your client have to save annually in order to fund the facility care coverage? Solution Using Long-Term Care Calculator: Select Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field. 2. In the Retire By field enter age 55 3. In the Mortality field enter 90 4. Change the Inflation assumption to 4% 5. Set the Return assumption to 10% 6. Set the Marginal Tax Rate to 30% 7. Leave the Percentage to Insure option at 50% 8. Under Home Care Coverage, set the Estimated Costs/Month to $0, and the Starting Age can remain at the default. 9. Under Facility Care Coverage, set the Estimated Costs/Month to Rs3000, and the Starting Age to age 75. 10. Click the button underneath the results section. Under the Results section, she would have to make Indexed Savings to Fund Difference of $14007 until her retirement to fund these facility expenses herself. Example Problem Three: You have clients for which you have already completed the life planning process flow, who now want to see if they have a shortfall in the event of critical illness. They want to plan to fund home care costs at their age 70, for about Rs2,000 each month. Upon age 80, they will move to a proper nursing facility with a monthly cost of Rs4,000. Solution Using the Long-Term Care Calculator: After you set the Scenario to the client’s Long-Term Care, the following data entry fields will be automatically updated: Current Age, Retire By, Mortality, Inflation and Rate of Return. Leave the Marginal Tax Rate at the default or enter an assumption you feel is more appropriate. Leave the Percentage to Insure option at to 50% Under Home Care Coverage, set the Estimated Costs/Month to Rs2,000, and the Starting Age can be set to 70. Under Facility Care Coverage, set the Estimated Costs/Month to Rs4,000, and the Starting Age to age 80. Click Calculate Also click Save once the calculations are complete. Repeat these steps for the spouse since her scenario is exactly the same.

Caribbean

Jamaica The Long-Term Care Calculator helps you identify the amount of Long-Term Care insurance that may be required to protect your client’s estate from the erosion caused by long- term care expenses. The calculations allow you to see the future value and present value of the erosion caused with no coverage and with coverage of a specified percentage. It also shows how estate erosion can be totally eliminated with 100% coverage. This calculator takes into consideration both a period of home care and a period of facility care starting at the ages you select. If you want to pre-populate this calculator with information from the Client Data Entry screens, you must have entered the Personal Information for your client, as well as completed the Asset Allocation screen. This will override any defaults in the Age, Retire By, Mortality, Inflation Assumption and Return fields. Example Problem One: Marc is 40-years old and wants to assume that when he is 80-years old he will have to fund home care expenses of $15000 per month, and when he is 85-years old he will have to fund facility care expenses of $40000 per month. The other assumptions for Marc are below: Retire By: 58 Mortality: 90 Inflation: 3% Return: 8% Marginal Tax Rate: 35% Percentage to Insure: 50% How much money would Marc need today if he elected to self-insurance these long-term care expenses? How much would he have to save? Solution Using Long-Term Care Calculator: Length: 2min 49 sec Select the Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field 2. In the Retire By field enter age 58 3. In the Mortality field enter age 90 4. Leave the Inflation assumption at the default of 3% 5. Change the Return assumption to 8% 6. Set the Marginal Tax Rate to 35% 7. Leave the Percentage to Insure option at the default of 50% Note: This percentage does not affect the calculations, but will allow you to see the results listed below if Marc chose to purchase insurance to cover half of the costs, and self-insure the rest. 8. Under Home Care Coverage: set the Estimated Costs/Month to $15000, and the Starting Age to age 80 as he indicated. 9. Under Facility Care Coverage, set the Estimated Costs/Month to $40000, and the Starting Age to age 85. 10. Click the button underneath the results section. 11. Identify the Present Value of Capital required under the Self-Insured option – in this case $1356310. This represents the money the client would need today to cover the long- term care expenses himself. 12. Identify the Indexed Savings to Fund Difference required under the Self-Insured option – in this case $94300. This represents the money the client would need to save annually (indexed with inflation) to cover the long-term care expenses himself. To View the Long-Term Care Report: Click on the View Report button to view a summary report of data input and calculated insurance coverage required. Length: 3min 04 sec Example Problem Two: Annabelle is 40-years old and wants to be able to fund facility care coverage of $30000 per month starting at her age 75. She does not want to cover home care expenses at any point. The rest of her assumptions are listed below: Retire By: 55 Mortality: 90 Inflation: 4% Return: 10% Marginal Tax Rate: 30% Percentage to Insure: 50% How much would your client have to save annually in order to fund the facility care coverage? Solution Using Long-Term Care Calculator: Select Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field. 2. In the Retire By field enter age 55 3. In the Mortality field enter 90 4. Change the Inflation assumption to 4% 5. Set the Return assumption to 10% 6. Set the Marginal Tax Rate to 30% 7. Leave the Percentage to Insure option at 50% 8. Under Home Care Coverage, set the Estimated Costs/Month to $0, and the Starting Age can remain at the default. 9. Under Facility Care Coverage, set the Estimated Costs/Month to $30000, and the Starting Age to age 75. 10. Click the button underneath the results section. Under the Results section, she would have to make Indexed Savings to Fund Difference of $140007 until her retirement to fund these facility expenses herself. Example Problem Three: You have clients for which you have already completed the life planning process flow, who now want to see if they have a shortfall in the event of critical illness. They want to plan to fund home care costs at their age 70, for about $20000 each month. Upon age 80, they will move to a proper nursing facility with a monthly cost of $40000. Solution Using the Long-Term Care Calculator: After you set the Scenario to the client’s Long-Term Care, the following data entry fields will be automatically updated: Current Age, Retire By, Mortality, Inflation and Rate of Return. Leave the Marginal Tax Rate at the default or enter an assumption you feel is more appropriate. Leave the Percentage to Insure option at to 50% Under Home Care Coverage, set the Estimated Costs/Month to $20000, and the Starting Age can be set to 70. Under Facility Care Coverage, set the Estimated Costs/Month to $40000, and the Starting Age to age 80. Click Calculate Also click Save once the calculations are complete. Repeat these steps for the spouse since her scenario is exactly the same. Trinidad and Tobago The Long-Term Care Calculator helps you identify the amount of Long-Term Care insurance that may be required to protect your client’s estate from the erosion caused by long- term care expenses. The calculations allow you to see the future value and present value of the erosion caused with no coverage and with coverage of a specified percentage. It also shows how estate erosion can be totally eliminated with 100% coverage. This calculator takes into consideration both a period of home care and a period of facility care starting at the ages you select. If you want to pre-populate this calculator with information from the Client Data Entry screens, you must have entered the Personal Information for your client, as well as completed the Asset Allocation screen. This will override any defaults in the Age, Retire By, Mortality, Inflation Assumption and Return fields. Example Problem One: Marc is 40-years old and wants to assume that when he is 80-years old he will have to fund home care expenses of $1500 per month, and when he is 85-years old he will have to fund facility care expenses of $4000 per month. The other assumptions for Marc are below: Retire By: 58 Mortality: 90 Inflation: 3% Return: 8% Marginal Tax Rate: 35% Percentage to Insure: 50% How much money would Marc need today if he elected to self-insurance these long-term care expenses? How much would he have to save? Solution Using Long-Term Care Calculator: Length: 2min 49 sec Select the Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field 2. In the Retire By field enter age 58 3. In the Mortality field enter age 90 4. Leave the Inflation assumption at the default of 3% 5. Change the Return assumption to 8% 6. Set the Marginal Tax Rate to 35% 7. Leave the Percentage to Insure option at the default of 50% Note: This percentage does not affect the calculations, but will allow you to see the results listed below if Marc chose to purchase insurance to cover half of the costs, and self-insure the rest. 8. Under Home Care Coverage: set the Estimated Costs/Month to $1500, and the Starting Age to age 80 as he indicated. 9. Under Facility Care Coverage, set the Estimated Costs/Month to $4000, and the Starting Age to age 85. 10. Click the button underneath the results section. 11. Identify the Present Value of Capital required under the Self-Insured option – in this case $135,631. This represents the money the client would need today to cover the long- term care expenses himself. 12. Identify the Indexed Savings to Fund Difference required under the Self-Insured option – in this case $9430. This represents the money the client would need to save annually (indexed with inflation) to cover the long-term care expenses himself. To View the Long-Term Care Report: Click on the View Report button to view a summary report of data input and calculated insurance coverage required. Length: 3min 04 sec Example Problem Two: Annabelle is 40-years old and wants to be able to fund facility care coverage of $3000 per month starting at her age 75. She does not want to cover home care expenses at any point. The rest of her assumptions are listed below: Retire By: 55 Mortality: 90 Inflation: 4% Return: 10% Marginal Tax Rate: 30% Percentage to Insure: 50% How much would your client have to save annually in order to fund the facility care coverage? Solution Using Long-Term Care Calculator: Select Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field. 2. In the Retire By field enter age 55 3. In the Mortality field enter 90 4. Change the Inflation assumption to 4% 5. Set the Return assumption to 10% 6. Set the Marginal Tax Rate to 30% 7. Leave the Percentage to Insure option at 50% 8. Under Home Care Coverage, set the Estimated Costs/Month to $0, and the Starting Age can remain at the default. 9. Under Facility Care Coverage, set the Estimated Costs/Month to $3000, and the Starting Age to age 75. 10. Click the button underneath the results section. Under the Results section, she would have to make Indexed Savings to Fund Difference of $14007 until her retirement to fund these facility expenses herself. Example Problem Three: You have clients for which you have already completed the life planning process flow, who now want to see if they have a shortfall in the event of critical illness. They want to plan to fund home care costs at their age 70, for about $2,000 each month. Upon age 80, they will move to a proper nursing facility with a monthly cost of $4,000. Solution Using the Long-Term Care Calculator: After you set the Scenario to the client’s Long-Term Care, the following data entry fields will be automatically updated: Current Age, Retire By, Mortality, Inflation and Rate of Return. Leave the Marginal Tax Rate at the default or enter an assumption you feel is more appropriate. Leave the Percentage to Insure option at to 50% Under Home Care Coverage, set the Estimated Costs/Month to $2,000, and the Starting Age can be set to 70. Under Facility Care Coverage, set the Estimated Costs/Month to $4,000, and the Starting Age to age 80. Click Calculate Also click Save once the calculations are complete. Repeat these steps for the spouse since her scenario is exactly the same. Barbados The Long-Term Care Calculator helps you identify the amount of Long-Term Care insurance that may be required to protect your client’s estate from the erosion caused by long- term care expenses. The calculations allow you to see the future value and present value of the erosion caused with no coverage and with coverage of a specified percentage. It also shows how estate erosion can be totally eliminated with 100% coverage. This calculator takes into consideration both a period of home care and a period of facility care starting at the ages you select. If you want to pre-populate this calculator with information from the Client Data Entry screens, you must have entered the Personal Information for your client, as well as completed the Asset Allocation screen. This will override any defaults in the Age, Retire By, Mortality, Inflation Assumption and Return fields. Example Problem One: Marc is 40-years old and wants to assume that when he is 80-years old he will have to fund home care expenses of $1500 per month, and when he is 85-years old he will have to fund facility care expenses of $4000 per month. The other assumptions for Marc are below: Retire By: 58 Mortality: 90 Inflation: 3% Return: 8% Marginal Tax Rate: 35% Percentage to Insure: 50% How much money would Marc need today if he elected to self-insurance these long-term care expenses? How much would he have to save? Solution Using Long-Term Care Calculator: Length: 2min 49 sec Select the Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field 2. In the Retire By field enter age 58 3. In the Mortality field enter age 90 4. Leave the Inflation assumption at the default of 3% 5. Change the Return assumption to 8% 6. Set the Marginal Tax Rate to 35% 7. Leave the Percentage to Insure option at the default of 50% Note: This percentage does not affect the calculations, but will allow you to see the results listed below if Marc chose to purchase insurance to cover half of the costs, and self-insure the rest. 8. Under Home Care Coverage: set the Estimated Costs/Month to $1500, and the Starting Age to age 80 as he indicated. 9. Under Facility Care Coverage, set the Estimated Costs/Month to $4000, and the Starting Age to age 85. 10. Click the button underneath the results section. 11. Identify the Present Value of Capital required under the Self-Insured option – in this case $135,631. This represents the money the client would need today to cover the long- term care expenses himself. 12. Identify the Indexed Savings to Fund Difference required under the Self-Insured option – in this case $9430. This represents the money the client would need to save annually (indexed with inflation) to cover the long-term care expenses himself. To View the Long-Term Care Report: Click on the View Report button to view a summary report of data input and calculated insurance coverage required. Length: 3min 04 sec Example Problem Two: Annabelle is 40-years old and wants to be able to fund facility care coverage of $3000 per month starting at her age 75. She does not want to cover home care expenses at any point. The rest of her assumptions are listed below: Retire By: 55 Mortality: 90 Inflation: 4% Return: 10% Marginal Tax Rate: 30% Percentage to Insure: 50% How much would your client have to save annually in order to fund the facility care coverage? Solution Using Long-Term Care Calculator: Select Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field. 2. In the Retire By field enter age 55 3. In the Mortality field enter 90 4. Change the Inflation assumption to 4% 5. Set the Return assumption to 10% 6. Set the Marginal Tax Rate to 30% 7. Leave the Percentage to Insure option at 50% 8. Under Home Care Coverage, set the Estimated Costs/Month to $0, and the Starting Age can remain at the default. 9. Under Facility Care Coverage, set the Estimated Costs/Month to $3000, and the Starting Age to age 75. 10. Click the button underneath the results section. Under the Results section, she would have to make Indexed Savings to Fund Difference of $14007 until her retirement to fund these facility expenses herself. Example Problem Three: You have clients for which you have already completed the life planning process flow, who now want to see if they have a shortfall in the event of critical illness. They want to plan to fund home care costs at their age 70, for about $2,000 each month. Upon age 80, they will move to a proper nursing facility with a monthly cost of $4,000. Solution Using the Long-Term Care Calculator: After you set the Scenario to the client’s Long-Term Care, the following data entry fields will be automatically updated: Current Age, Retire By, Mortality, Inflation and Rate of Return. Leave the Marginal Tax Rate at the default or enter an assumption you feel is more appropriate. Leave the Percentage to Insure option at to 50% Under Home Care Coverage, set the Estimated Costs/Month to $2,000, and the Starting Age can be set to 70. Under Facility Care Coverage, set the Estimated Costs/Month to $4,000, and the Starting Age to age 80. Click Calculate Also click Save once the calculations are complete. Repeat these steps for the spouse since her scenario is exactly the same. Bermuda The Long-Term Care Calculator helps you identify the amount of Long-Term Care insurance that may be required to protect your client’s estate from the erosion caused by long- term care expenses. The calculations allow you to see the future value and present value of the erosion caused with no coverage and with coverage of a specified percentage. It also shows how estate erosion can be totally eliminated with 100% coverage. This calculator takes into consideration both a period of home care and a period of facility care starting at the ages you select. If you want to pre-populate this calculator with information from the Client Data Entry screens, you must have entered the Personal Information for your client, as well as completed the Asset Allocation screen. This will override any defaults in the Age, Retire By, Mortality, Inflation Assumption and Return fields. Example Problem One: Marc is 40-years old and wants to assume that when he is 80-years old he will have to fund home care expenses of $1500 per month, and when he is 85-years old he will have to fund facility care expenses of $4000 per month. The other assumptions for Marc are below: Retire By: 58 Mortality: 90 Inflation: 3% Return: 8% Marginal Tax Rate: 35% Percentage to Insure: 50% How much money would Marc need today if he elected to self-insurance these long-term care expenses? How much would he have to save? Solution Using Long-Term Care Calculator: Length: 2min 49 sec Select the Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field 2. In the Retire By field enter age 58 3. In the Mortality field enter age 90 4. Leave the Inflation assumption at the default of 3% 5. Change the Return assumption to 8% 6. Set the Marginal Tax Rate to 35% 7. Leave the Percentage to Insure option at the default of 50% Note: This percentage does not affect the calculations, but will allow you to see the results listed below if Marc chose to purchase insurance to cover half of the costs, and self-insure the rest. 8. Under Home Care Coverage: set the Estimated Costs/Month to $1500, and the Starting Age to age 80 as he indicated. 9. Under Facility Care Coverage, set the Estimated Costs/Month to $4000, and the Starting Age to age 85. 10. Click the button underneath the results section. 11. Identify the Present Value of Capital required under the Self-Insured option – in this case $135,631. This represents the money the client would need today to cover the long- term care expenses himself. 12. Identify the Indexed Savings to Fund Difference required under the Self-Insured option – in this case $9430. This represents the money the client would need to save annually (indexed with inflation) to cover the long-term care expenses himself. To View the Long-Term Care Report: Click on the View Report button to view a summary report of data input and calculated insurance coverage required. Length: 3min 04 sec Example Problem Two: Annabelle is 40-years old and wants to be able to fund facility care coverage of $3000 per month starting at her age 75. She does not want to cover home care expenses at any point. The rest of her assumptions are listed below: Retire By: 55 Mortality: 90 Inflation: 4% Return: 10% Marginal Tax Rate: 30% Percentage to Insure: 50% How much would your client have to save annually in order to fund the facility care coverage? Solution Using Long-Term Care Calculator: Select Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field. 2. In the Retire By field enter age 55 3. In the Mortality field enter 90 4. Change the Inflation assumption to 4% 5. Set the Return assumption to 10% 6. Set the Marginal Tax Rate to 30% 7. Leave the Percentage to Insure option at 50% 8. Under Home Care Coverage, set the Estimated Costs/Month to $0, and the Starting Age can remain at the default. 9. Under Facility Care Coverage, set the Estimated Costs/Month to $3000, and the Starting Age to age 75. 10. Click the button underneath the results section. Under the Results section, she would have to make Indexed Savings to Fund Difference of $14007 until her retirement to fund these facility expenses herself. Example Problem Three: You have clients for which you have already completed the life planning process flow, who now want to see if they have a shortfall in the event of critical illness. They want to plan to fund home care costs at their age 70, for about $2,000 each month. Upon age 80, they will move to a proper nursing facility with a monthly cost of $4,000. Solution Using the Long-Term Care Calculator: After you set the Scenario to the client’s Long-Term Care, the following data entry fields will be automatically updated: Current Age, Retire By, Mortality, Inflation and Rate of Return. Leave the Marginal Tax Rate at the default or enter an assumption you feel is more appropriate. Leave the Percentage to Insure option at to 50% Under Home Care Coverage, set the Estimated Costs/Month to $2,000, and the Starting Age can be set to 70. Under Facility Care Coverage, set the Estimated Costs/Month to $4,000, and the Starting Age to age 80. Click Calculate Also click Save once the calculations are complete. Repeat these steps for the spouse since her scenario is exactly the same. Bahamas The Long-Term Care Calculator helps you identify the amount of Long-Term Care insurance that may be required to protect your client’s estate from the erosion caused by long- term care expenses. The calculations allow you to see the future value and present value of the erosion caused with no coverage and with coverage of a specified percentage. It also shows how estate erosion can be totally eliminated with 100% coverage. This calculator takes into consideration both a period of home care and a period of facility care starting at the ages you select. If you want to pre-populate this calculator with information from the Client Data Entry screens, you must have entered the Personal Information for your client, as well as completed the Asset Allocation screen. This will override any defaults in the Age, Retire By, Mortality, Inflation Assumption and Return fields. Example Problem One: Marc is 40-years old and wants to assume that when he is 80-years old he will have to fund home care expenses of $1500 per month, and when he is 85-years old he will have to fund facility care expenses of $4000 per month. The other assumptions for Marc are below: Retire By: 58 Mortality: 90 Inflation: 3% Return: 8% Marginal Tax Rate: 35% Percentage to Insure: 50% How much money would Marc need today if he elected to self-insurance these long-term care expenses? How much would he have to save? Solution Using Long-Term Care Calculator: Length: 2min 49 sec Select the Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field 2. In the Retire By field enter age 58 3. In the Mortality field enter age 90 4. Leave the Inflation assumption at the default of 3% 5. Change the Return assumption to 8% 6. Set the Marginal Tax Rate to 35% 7. Leave the Percentage to Insure option at the default of 50% Note: This percentage does not affect the calculations, but will allow you to see the results listed below if Marc chose to purchase insurance to cover half of the costs, and self-insure the rest. 8. Under Home Care Coverage: set the Estimated Costs/Month to $1500, and the Starting Age to age 80 as he indicated. 9. Under Facility Care Coverage, set the Estimated Costs/Month to $4000, and the Starting Age to age 85. 10. Click the button underneath the results section. 11. Identify the Present Value of Capital required under the Self-Insured option – in this case $135,631. This represents the money the client would need today to cover the long- term care expenses himself. 12. Identify the Indexed Savings to Fund Difference required under the Self-Insured option – in this case $9430. This represents the money the client would need to save annually (indexed with inflation) to cover the long-term care expenses himself. To View the Long-Term Care Report: Click on the View Report button to view a summary report of data input and calculated insurance coverage required. Length: 3min 04 sec Example Problem Two: Annabelle is 40-years old and wants to be able to fund facility care coverage of $3000 per month starting at her age 75. She does not want to cover home care expenses at any point. The rest of her assumptions are listed below: Retire By: 55 Mortality: 90 Inflation: 4% Return: 10% Marginal Tax Rate: 30% Percentage to Insure: 50% How much would your client have to save annually in order to fund the facility care coverage? Solution Using Long-Term Care Calculator: Select Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field. 2. In the Retire By field enter age 55 3. In the Mortality field enter 90 4. Change the Inflation assumption to 4% 5. Set the Return assumption to 10% 6. Set the Marginal Tax Rate to 30% 7. Leave the Percentage to Insure option at 50% 8. Under Home Care Coverage, set the Estimated Costs/Month to $0, and the Starting Age can remain at the default. 9. Under Facility Care Coverage, set the Estimated Costs/Month to $3000, and the Starting Age to age 75. 10. Click the button underneath the results section. Under the Results section, she would have to make Indexed Savings to Fund Difference of $14007 until her retirement to fund these facility expenses herself. Example Problem Three: You have clients for which you have already completed the life planning process flow, who now want to see if they have a shortfall in the event of critical illness. They want to plan to fund home care costs at their age 70, for about $2,000 each month. Upon age 80, they will move to a proper nursing facility with a monthly cost of $4,000. Solution Using the Long-Term Care Calculator: After you set the Scenario to the client’s Long-Term Care, the following data entry fields will be automatically updated: Current Age, Retire By, Mortality, Inflation and Rate of Return. Leave the Marginal Tax Rate at the default or enter an assumption you feel is more appropriate. Leave the Percentage to Insure option at to 50% Under Home Care Coverage, set the Estimated Costs/Month to $2,000, and the Starting Age can be set to 70. Under Facility Care Coverage, set the Estimated Costs/Month to $4,000, and the Starting Age to age 80. Click Calculate Also click Save once the calculations are complete. Repeat these steps for the spouse since her scenario is exactly the same. Puerto Rico The Long-Term Care Calculator helps you identify the amount of Long-Term Care insurance that may be required to protect your client’s estate from the erosion caused by long- term care expenses. The calculations allow you to see the future value and present value of the erosion caused with no coverage and with coverage of a specified percentage. It also shows how estate erosion can be totally eliminated with 100% coverage. This calculator takes into consideration both a period of home care and a period of facility care starting at the ages you select. If you want to pre-populate this calculator with information from the Client Data Entry screens, you must have entered the Personal Information for your client, as well as completed the Asset Allocation screen. This will override any defaults in the Age, Retire By, Mortality, Inflation Assumption and Return fields. Example Problem One: Marc is 40-years old and wants to assume that when he is 80-years old he will have to fund home care expenses of $1500 per month, and when he is 85-years old he will have to fund facility care expenses of $4000 per month. The other assumptions for Marc are below: Retire By: 58 Mortality: 90 Inflation: 3% Return: 8% Marginal Tax Rate: 35% Percentage to Insure: 50% How much money would Marc need today if he elected to self-insurance these long-term care expenses? How much would he have to save? Solution Using Long-Term Care Calculator: Length: 2min 49 sec Select the Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field 2. In the Retire By field enter age 58 3. In the Mortality field enter age 90 4. Leave the Inflation assumption at the default of 3% 5. Change the Return assumption to 8% 6. Set the Marginal Tax Rate to 35% 7. Leave the Percentage to Insure option at the default of 50% Note: This percentage does not affect the calculations, but will allow you to see the results listed below if Marc chose to purchase insurance to cover half of the costs, and self-insure the rest. 8. Under Home Care Coverage: set the Estimated Costs/Month to $1500, and the Starting Age to age 80 as he indicated. 9. Under Facility Care Coverage, set the Estimated Costs/Month to $4000, and the Starting Age to age 85. 10. Click the button underneath the results section. 11. Identify the Present Value of Capital required under the Self-Insured option – in this case $135,631. This represents the money the client would need today to cover the long- term care expenses himself. 12. Identify the Indexed Savings to Fund Difference required under the Self-Insured option – in this case $9430. This represents the money the client would need to save annually (indexed with inflation) to cover the long-term care expenses himself. To View the Long-Term Care Report: Click on the View Report button to view a summary report of data input and calculated insurance coverage required. Length: 3min 04 sec Example Problem Two: Annabelle is 40-years old and wants to be able to fund facility care coverage of $3000 per month starting at her age 75. She does not want to cover home care expenses at any point. The rest of her assumptions are listed below: Retire By: 55 Mortality: 90 Inflation: 4% Return: 10% Marginal Tax Rate: 30% Percentage to Insure: 50% How much would your client have to save annually in order to fund the facility care coverage? Solution Using Long-Term Care Calculator: Select Long-Term Care Calculator from the calculator drop-down menu on Home page. 1. Enter age 40 into the Current Age field. 2. In the Retire By field enter age 55 3. In the Mortality field enter 90 4. Change the Inflation assumption to 4% 5. Set the Return assumption to 10% 6. Set the Marginal Tax Rate to 30% 7. Leave the Percentage to Insure option at 50% 8. Under Home Care Coverage, set the Estimated Costs/Month to $0, and the Starting Age can remain at the default. 9. Under Facility Care Coverage, set the Estimated Costs/Month to $3000, and the Starting Age to age 75. 10. Click the button underneath the results section. Under the Results section, she would have to make Indexed Savings to Fund Difference of $14007 until her retirement to fund these facility expenses herself. Example Problem Three: You have clients for which you have already completed the life planning process flow, who now want to see if they have a shortfall in the event of critical illness. They want to plan to fund home care costs at their age 70, for about $2,000 each month. Upon age 80, they will move to a proper nursing facility with a monthly cost of $4,000. Solution Using the Long-Term Care Calculator: After you set the Scenario to the client’s Long-Term Care, the following data entry fields will be automatically updated: Current Age, Retire By, Mortality, Inflation and Rate of Return. Leave the Marginal Tax Rate at the default or enter an assumption you feel is more appropriate. Leave the Percentage to Insure option at to 50% Under Home Care Coverage, set the Estimated Costs/Month to $2,000, and the Starting Age can be set to 70. Under Facility Care Coverage, set the Estimated Costs/Month to $4,000, and the Starting Age to age 80. Click Calculate Also click Save once the calculations are complete. Repeat these steps for the spouse since her scenario is exactly the same.