Planit:Long-Term Care Calculator Exercise

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Contents 1 Solve for the following problem: 2 Solve for the following problem: 3 Solve for the following problem: 4 Solve for the following problem: 5 Solve for the following problem: 6 Solve for the following problem: 7 Solve for the following problem: 8 Solve for the following problem: 9 Solve for the following problem: 10 Solve for the following problem: 11 Solve for the following problem: 12 Solve for the following problem: 13 Solve for the following problem: 14 Solve for the following problem: 15 Solve for the following problem: 16 Solve for the following problem: 17 Solve for the following problem: 18 Solve for the following problem: 19 Solve for the following problem: 20 Solve for the following problem: 21 Solve for the following problem: 22 Solve for the following problem: 23 Solve for the following problem: 24 Solve for the following problem: 25 Solve for the following problem: 26 Solve for the following problem: 27 Solve for the following problem: 28 Solve for the following problem: 29 Solve for the following problem: 30 Solve for the following problem: 31 Solve for the following problem: 32 Solve for the following problem: 33 Solve for the following problem: 34 Solve for the following problem: Solve for the following problem: Jesse Jones wants to purchase long-term care insurance to fund home care expenses and facility care expenses from his age 75 and 85 respectively. However, he is electing to insure 70% as opposed to complete self-insurance or full 100% insurance. Jesse’s detailed information is below: Current Age: 55 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 20% Cost of Home Care/Month: $1500 Cost of Facility Care/Month: $3500 How much is the present value of the cost to self-insure these expenses? $_____ How much is the present value of insuring 70% of these expenses? $______ How much is the present value of insuring 100% of these expenses? $_____ Solve for the following problem: Charlie wants to have an Emergency Fund for the event that he has to fund long-term care expenses himself. He does not currently have any money in this Emergency Fund, but plans to save an indexed amount of $5,000 annually. Given that Charlie wants to self-insure as much as possible, within his savings limits, what percentage of the expenses would you elect him to insure – 0%, 50% or 100%? Current Age: 40 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 35% Home Care Expenses/Month: $1500 Home Care Starting Age: 80 Facility Care Expenses/Month: $3500 Facility Care Starting Age: 85 Check the accuracy of your client against the answer key

United States of America

Solve for the following problem: Jesse Jones wants to purchase long-term care insurance to fund home care expenses and facility care expenses from his age 75 and 85 respectively. However, he is electing to insure 70% as opposed to complete self-insurance or full 100% insurance. Jesse’s detailed information is below: Current Age: 55 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 20% Cost of Home Care/Month: $1500 Cost of Facility Care/Month: $3500 How much is the present value of the cost to self-insure these expenses? $_____ How much is the present value of insuring 70% of these expenses? $______ How much is the present value of insuring 100% of these expenses? $_____ Solve for the following problem: Charlie wants to have an Emergency Fund for the event that he has to fund long-term care expenses himself. He does not currently have any money in this Emergency Fund, but plans to save an indexed amount of $5,000 annually. Given that Charlie wants to self-insure as much as possible, within his savings limits, what percentage of the expenses would you elect him to insure – 0%, 50% or 100%? Current Age: 40 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 35% Home Care Expenses/Month: $1500 Home Care Starting Age: 80 Facility Care Expenses/Month: $3500 Facility Care Starting Age: 85 Check the accuracy of your client against the answer key

Argentina

Solve for the following problem: Jesse Jones wants to purchase long-term care insurance to fund home care expenses and facility care expenses from his age 75 and 85 respectively. However, he is electing to insure 70% as opposed to complete self-insurance or full 100% insurance. Jesse’s detailed information is below: Current Age: 55 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 20% Cost of Home Care/Month: $1500 Cost of Facility Care/Month: $3500 How much is the present value of the cost to self-insure these expenses? $_____ How much is the present value of insuring 70% of these expenses? $______ How much is the present value of insuring 100% of these expenses? $_____ Solve for the following problem: Charlie wants to have an Emergency Fund for the event that he has to fund long-term care expenses himself. He does not currently have any money in this Emergency Fund, but plans to save an indexed amount of $5,000 annually. Given that Charlie wants to self-insure as much as possible, within his savings limits, what percentage of the expenses would you elect him to insure – 0%, 50% or 100%? Current Age: 40 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 35% Home Care Expenses/Month: $1500 Home Care Starting Age: 80 Facility Care Expenses/Month: $3500 Facility Care Starting Age: 85 Check the accuracy of your client against the answer key

Brazil

Solve for the following problem: Jesse Jones wants to purchase long-term care insurance to fund home care expenses and facility care expenses from his age 75 and 85 respectively. However, he is electing to insure 70% as opposed to complete self-insurance or full 100% insurance. Jesse’s detailed information is below: Current Age: 55 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 20% Cost of Home Care/Month: $1500 Cost of Facility Care/Month: $3500 How much is the present value of the cost to self-insure these expenses? $_____ How much is the present value of insuring 70% of these expenses? $______ How much is the present value of insuring 100% of these expenses? $_____ Solve for the following problem: Charlie wants to have an Emergency Fund for the event that he has to fund long-term care expenses himself. He does not currently have any money in this Emergency Fund, but plans to save an indexed amount of $5,000 annually. Given that Charlie wants to self-insure as much as possible, within his savings limits, what percentage of the expenses would you elect him to insure – 0%, 50% or 100%? Current Age: 40 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 35% Home Care Expenses/Month: $1500 Home Care Starting Age: 80 Facility Care Expenses/Month: $3500 Facility Care Starting Age: 85 Check the accuracy of your client against the answer key

United Kingdom

Solve for the following problem: Jesse Jones wants to purchase long-term care insurance to fund home care expenses and facility care expenses from his age 75 and 85 respectively. However, he is electing to insure 70% as opposed to complete self-insurance or full 100% insurance. Jesse’s detailed information is below: Current Age: 55 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 20% Cost of Home Care/Month: £1500 Cost of Facility Care/Month: £3500 How much is the present value of the cost to self-insure these expenses? $_____ How much is the present value of insuring 70% of these expenses? $______ How much is the present value of insuring 100% of these expenses? $_____ Solve for the following problem: Charlie wants to have an Emergency Fund for the event that he has to fund long-term care expenses himself. He does not currently have any money in this Emergency Fund, but plans to save an indexed amount of £5,000 annually. Given that Charlie wants to self-insure as much as possible, within his savings limits, what percentage of the expenses would you elect him to insure – 0%, 50% or 100%? Current Age: 40 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 35% Home Care Expenses/Month: £1500 Home Care Starting Age: 80 Facility Care Expenses/Month: £3500 Facility Care Starting Age: 85 Check the accuracy of your client against the answer key

Russia

Solve for the following problem: Jesse Jones wants to purchase long-term care insurance to fund home care expenses and facility care expenses from his age 75 and 85 respectively. However, he is electing to insure 70% as opposed to complete self-insurance or full 100% insurance. Jesse’s detailed information is below: Current Age: 55 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 20% Cost of Home Care/Month: R1500 Cost of Facility Care/Month: R3500 How much is the present value of the cost to self-insure these expenses? $_____ How much is the present value of insuring 70% of these expenses? $______ How much is the present value of insuring 100% of these expenses? $_____ Solve for the following problem: Charlie wants to have an Emergency Fund for the event that he has to fund long-term care expenses himself. He does not currently have any money in this Emergency Fund, but plans to save an indexed amount of R5,000 annually. Given that Charlie wants to self-insure as much as possible, within his savings limits, what percentage of the expenses would you elect him to insure – 0%, 50% or 100%? Current Age: 40 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 35% Home Care Expenses/Month: R1500 Home Care Starting Age: 80 Facility Care Expenses/Month: R3500 Facility Care Starting Age: 85 Check the accuracy of your client against the answer key

China

Solve for the following problem: Jesse Jones wants to purchase long-term care insurance to fund home care expenses and facility care expenses from his age 75 and 85 respectively. However, he is electing to insure 70% as opposed to complete self-insurance or full 100% insurance. Jesse’s detailed information is below: Current Age: 55 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 20% Cost of Home Care/Month: ¥1500 Cost of Facility Care/Month: ¥3500 How much is the present value of the cost to self-insure these expenses? $_____ How much is the present value of insuring 70% of these expenses? $______ How much is the present value of insuring 100% of these expenses? $_____ Solve for the following problem: Charlie wants to have an Emergency Fund for the event that he has to fund long-term care expenses himself. He does not currently have any money in this Emergency Fund, but plans to save an indexed amount of ¥5,000 annually. Given that Charlie wants to self-insure as much as possible, within his savings limits, what percentage of the expenses would you elect him to insure – 0%, 50% or 100%? Current Age: 40 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 35% Home Care Expenses/Month: ¥1500 Home Care Starting Age: 80 Facility Care Expenses/Month: ¥3500 Facility Care Starting Age: 85 Check the accuracy of your client against the answer key

Malaysia

Solve for the following problem: Jesse Jones wants to purchase long-term care insurance to fund home care expenses and facility care expenses from his age 75 and 85 respectively. However, he is electing to insure 70% as opposed to complete self-insurance or full 100% insurance. Jesse’s detailed information is below: Current Age: 55 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 20% Cost of Home Care/Month: RM1500 Cost of Facility Care/Month: RM3500 How much is the present value of the cost to self-insure these expenses? $_____ How much is the present value of insuring 70% of these expenses? $______ How much is the present value of insuring 100% of these expenses? $_____ Solve for the following problem: Charlie wants to have an Emergency Fund for the event that he has to fund long-term care expenses himself. He does not currently have any money in this Emergency Fund, but plans to save an indexed amount of RM5,000 annually. Given that Charlie wants to self-insure as much as possible, within his savings limits, what percentage of the expenses would you elect him to insure – 0%, 50% or 100%? Current Age: 40 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 35% Home Care Expenses/Month: RM1500 Home Care Starting Age: 80 Facility Care Expenses/Month: RM3500 Facility Care Starting Age: 85 Check the accuracy of your client against the answer key

Singapore

Solve for the following problem: Jesse Jones wants to purchase long-term care insurance to fund home care expenses and facility care expenses from his age 75 and 85 respectively. However, he is electing to insure 70% as opposed to complete self-insurance or full 100% insurance. Jesse’s detailed information is below: Current Age: 55 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 20% Cost of Home Care/Month: $1500 Cost of Facility Care/Month: $3500 How much is the present value of the cost to self-insure these expenses? $_____ How much is the present value of insuring 70% of these expenses? $______ How much is the present value of insuring 100% of these expenses? $_____ Solve for the following problem: Charlie wants to have an Emergency Fund for the event that he has to fund long-term care expenses himself. He does not currently have any money in this Emergency Fund, but plans to save an indexed amount of $5,000 annually. Given that Charlie wants to self-insure as much as possible, within his savings limits, what percentage of the expenses would you elect him to insure – 0%, 50% or 100%? Current Age: 40 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 35% Home Care Expenses/Month: $1500 Home Care Starting Age: 80 Facility Care Expenses/Month: $3500 Facility Care Starting Age: 85 Check the accuracy of your client against the answer key

Hong Kong

Solve for the following problem: Jesse Jones wants to purchase long-term care insurance to fund home care expenses and facility care expenses from his age 75 and 85 respectively. However, he is electing to insure 70% as opposed to complete self-insurance or full 100% insurance. Jesse’s detailed information is below: Current Age: 55 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 20% Cost of Home Care/Month: $1500 Cost of Facility Care/Month: $3500 How much is the present value of the cost to self-insure these expenses? $_____ How much is the present value of insuring 70% of these expenses? $______ How much is the present value of insuring 100% of these expenses? $_____ Solve for the following problem: Charlie wants to have an Emergency Fund for the event that he has to fund long-term care expenses himself. He does not currently have any money in this Emergency Fund, but plans to save an indexed amount of $5,000 annually. Given that Charlie wants to self-insure as much as possible, within his savings limits, what percentage of the expenses would you elect him to insure – 0%, 50% or 100%? Current Age: 40 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 35% Home Care Expenses/Month: $1500 Home Care Starting Age: 80 Facility Care Expenses/Month: $3500 Facility Care Starting Age: 85 Check the accuracy of your client against the answer key

India

Solve for the following problem: Jesse Jones wants to purchase long-term care insurance to fund home care expenses and facility care expenses from his age 75 and 85 respectively. However, he is electing to insure 70% as opposed to complete self-insurance or full 100% insurance. Jesse’s detailed information is below: Current Age: 55 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 20% Cost of Home Care/Month: Rs1500 Cost of Facility Care/Month: Rs3500 How much is the present value of the cost to self-insure these expenses? $_____ How much is the present value of insuring 70% of these expenses? $______ How much is the present value of insuring 100% of these expenses? $_____ Solve for the following problem: Charlie wants to have an Emergency Fund for the event that he has to fund long-term care expenses himself. He does not currently have any money in this Emergency Fund, but plans to save an indexed amount of Rs5,000 annually. Given that Charlie wants to self-insure as much as possible, within his savings limits, what percentage of the expenses would you elect him to insure – 0%, 50% or 100%? Current Age: 40 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 35% Home Care Expenses/Month: Rs1500 Home Care Starting Age: 80 Facility Care Expenses/Month: Rs3500 Facility Care Starting Age: 85 Check the accuracy of your client against the answer key

Caribbean

Jamaica   Solve for the following problem: Jesse Jones wants to purchase long-term care insurance to fund home care expenses and facility care expenses from his age 75 and 85 respectively. However, he is electing to insure 70% as opposed to complete self-insurance or full 100% insurance. Jesse’s detailed information is below: Current Age: 55 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 20% Cost of Home Care/Month: $15000 Cost of Facility Care/Month: $35000 How much is the present value of the cost to self-insure these expenses? $_____ How much is the present value of insuring 70% of these expenses? $______ How much is the present value of insuring 100% of these expenses? $_____ Solve for the following problem: Charlie wants to have an Emergency Fund for the event that he has to fund long-term care expenses himself. He does not currently have any money in this Emergency Fund, but plans to save an indexed amount of $50000 annually. Given that Charlie wants to self-insure as much as possible, within his savings limits, what percentage of the expenses would you elect him to insure – 0%, 50% or 100%? Current Age: 40 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 35% Home Care Expenses/Month: $15000 Home Care Starting Age: 80 Facility Care Expenses/Month: $35000 Facility Care Starting Age: 85 Check the accuracy of your client against the answer key Trinidad and Tobago   Solve for the following problem: Jesse Jones wants to purchase long-term care insurance to fund home care expenses and facility care expenses from his age 75 and 85 respectively. However, he is electing to insure 70% as opposed to complete self-insurance or full 100% insurance. Jesse’s detailed information is below: Current Age: 55 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 20% Cost of Home Care/Month: $1500 Cost of Facility Care/Month: $3500 How much is the present value of the cost to self-insure these expenses? $_____ How much is the present value of insuring 70% of these expenses? $______ How much is the present value of insuring 100% of these expenses? $_____ Solve for the following problem: Charlie wants to have an Emergency Fund for the event that he has to fund long-term care expenses himself. He does not currently have any money in this Emergency Fund, but plans to save an indexed amount of $5,000 annually. Given that Charlie wants to self-insure as much as possible, within his savings limits, what percentage of the expenses would you elect him to insure – 0%, 50% or 100%? Current Age: 40 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 35% Home Care Expenses/Month: $1500 Home Care Starting Age: 80 Facility Care Expenses/Month: $3500 Facility Care Starting Age: 85 Check the accuracy of your client against the answer key Barbados   Solve for the following problem: Jesse Jones wants to purchase long-term care insurance to fund home care expenses and facility care expenses from his age 75 and 85 respectively. However, he is electing to insure 70% as opposed to complete self-insurance or full 100% insurance. Jesse’s detailed information is below: Current Age: 55 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 20% Cost of Home Care/Month: $1500 Cost of Facility Care/Month: $3500 How much is the present value of the cost to self-insure these expenses? $_____ How much is the present value of insuring 70% of these expenses? $______ How much is the present value of insuring 100% of these expenses? $_____ Solve for the following problem: Charlie wants to have an Emergency Fund for the event that he has to fund long-term care expenses himself. He does not currently have any money in this Emergency Fund, but plans to save an indexed amount of $5,000 annually. Given that Charlie wants to self-insure as much as possible, within his savings limits, what percentage of the expenses would you elect him to insure – 0%, 50% or 100%? Current Age: 40 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 35% Home Care Expenses/Month: $1500 Home Care Starting Age: 80 Facility Care Expenses/Month: $3500 Facility Care Starting Age: 85 Check the accuracy of your client against the answer key Bermuda   Solve for the following problem: Jesse Jones wants to purchase long-term care insurance to fund home care expenses and facility care expenses from his age 75 and 85 respectively. However, he is electing to insure 70% as opposed to complete self-insurance or full 100% insurance. Jesse’s detailed information is below: Current Age: 55 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 20% Cost of Home Care/Month: $1500 Cost of Facility Care/Month: $3500 How much is the present value of the cost to self-insure these expenses? $_____ How much is the present value of insuring 70% of these expenses? $______ How much is the present value of insuring 100% of these expenses? $_____ Solve for the following problem: Charlie wants to have an Emergency Fund for the event that he has to fund long-term care expenses himself. He does not currently have any money in this Emergency Fund, but plans to save an indexed amount of $5,000 annually. Given that Charlie wants to self-insure as much as possible, within his savings limits, what percentage of the expenses would you elect him to insure – 0%, 50% or 100%? Current Age: 40 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 35% Home Care Expenses/Month: $1500 Home Care Starting Age: 80 Facility Care Expenses/Month: $3500 Facility Care Starting Age: 85 Check the accuracy of your client against the answer key Bahamas   Solve for the following problem: Jesse Jones wants to purchase long-term care insurance to fund home care expenses and facility care expenses from his age 75 and 85 respectively. However, he is electing to insure 70% as opposed to complete self-insurance or full 100% insurance. Jesse’s detailed information is below: Current Age: 55 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 20% Cost of Home Care/Month: $1500 Cost of Facility Care/Month: $3500 How much is the present value of the cost to self-insure these expenses? $_____ How much is the present value of insuring 70% of these expenses? $______ How much is the present value of insuring 100% of these expenses? $_____ Solve for the following problem: Charlie wants to have an Emergency Fund for the event that he has to fund long-term care expenses himself. He does not currently have any money in this Emergency Fund, but plans to save an indexed amount of $5,000 annually. Given that Charlie wants to self-insure as much as possible, within his savings limits, what percentage of the expenses would you elect him to insure – 0%, 50% or 100%? Current Age: 40 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 35% Home Care Expenses/Month: $1500 Home Care Starting Age: 80 Facility Care Expenses/Month: $3500 Facility Care Starting Age: 85 Check the accuracy of your client against the answer key Puerto Rico   Solve for the following problem: Jesse Jones wants to purchase long-term care insurance to fund home care expenses and facility care expenses from his age 75 and 85 respectively. However, he is electing to insure 70% as opposed to complete self-insurance or full 100% insurance. Jesse’s detailed information is below: Current Age: 55 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 20% Cost of Home Care/Month: $1500 Cost of Facility Care/Month: $3500 How much is the present value of the cost to self-insure these expenses? $_____ How much is the present value of insuring 70% of these expenses? $______ How much is the present value of insuring 100% of these expenses? $_____ Solve for the following problem: Charlie wants to have an Emergency Fund for the event that he has to fund long-term care expenses himself. He does not currently have any money in this Emergency Fund, but plans to save an indexed amount of $5,000 annually. Given that Charlie wants to self-insure as much as possible, within his savings limits, what percentage of the expenses would you elect him to insure – 0%, 50% or 100%? Current Age: 40 Retire By: 55 Mortality: 90 Inflation: 3.0% Rate of Return: 9.0% Marginal Tax Rate: 35% Home Care Expenses/Month: $1500 Home Care Starting Age: 80 Facility Care Expenses/Month: $3500 Facility Care Starting Age: 85 Check the accuracy of your client against the answer key