Frequently Asked Questions about Long Term Care

Q. Why should I be concerned with long term care at this time in my life?

A. This coverage can play a significant role in your overall financial security scenario. Just as you set aside money for your children’s education, your retirement, and other special goals, you may want to consider the benefits of including long-term care insurance in your plans--for several reasons. First, the coverage enables you to choose the type of care and the location that are right for you. Second, you’ll help protect your savings from the escalating costs of long-term care. Third--and this may be of prime importance to many of us--you’ll avoid placing an undue burden on those you love, who could otherwise have to sacrifice time and money to assure your care.

Q. What is the likelihood that I will need long term care?

A. According to Life Association News (1993), our chances of needing long-term care are about one in three, far greater than the chances of being in a major car accident or having a home destroyed by fire. Yet many Americans have made few plans, if any, for how to meet their needs for long-term care.

Unfortunately, the cost of care is high and is continuing to rise. Data from the National Association of Insurance Commissioners (NAIC), as reported in Business Week in February 1997, tell a disturbing story:

• One hour of home care costs an average of $10 to $18. Thirty hours per week would average $15,000 to $27,000 a year.
• The average annual cost of a residence for assisted living is over $26,000.
• Entry costs for continuing care retirement communities average between $60,000 and $85,000 (in addition to monthly fees of $1,000 to $1,800).
• The cost of care in a nursing home is about $40,000 annually, and costs can run much higher in metropolitan areas.

Q. What type of coverage do I receive with UNI’s Long Term Care Insurance Plan?

A. University of Northern Iowa Long-Term Care Insurance Plan helps cover long-term care costs in a variety of locations: in your own home, in a nursing home, and in other types of care facilities that may be covered. You can receive services from trained nurses, home health care aides, therapists, and other types of caregivers. Depending on the maximum benefit you choose when you enroll, you could receive benefits up to $547,500 for the covered services you can receive while you are insured.

Q. Is this plan flexible? Will the rates increase as I age?

A. Long-term care insurance is a relatively new coverage, introduced just in the last decade, but it’s growing rapidly. Those who don’t know about it often overestimate its costs. For example, a visit from a home health care aide can cost an average of $78 per visit (NAIC 1997). Because of the flexibility built into this insurance, you can elect coverage that fits your budget. Also, once you are enrolled, your rates will not increase because you age or use your benefits. Rates can increase only if they increase for the class or group of which you are a part. The younger you are, the lower your monthly premiums will be.

Q. When can I enroll in UNI’s plan?

A. New hires can enroll with guarantee issue within 30 days of first becoming benefit eligible. All other active employees working at least 20 hours per week can enroll anytime but must provide evidence of insurability by completing the statement of health on the application. Family member can also enroll anytime by completing statement of health on the application.

Q . Can my family members be accepted to this plan?

A. The University of Northern Iowa Long-Term Care Insurance Plan is available to eligible employees, and their eligible spouses, parents, parents-in-law, grandparents, and grandparents-in-law. The plan is also available to siblings, spouses of siblings, adult children and spouses of adult children of eligible employees. Your eligible family members will need to provide proof of good health before being accepted into the plan. They will need to complete the application provided for them in the long-term care enrollment kit or online at the University of Northern Iowa Long-Term Care Web site.

Q. Where can I get additional information about University of Northern Iowa Long-Term Care Insurance Plan?

A. More information is available at http://uni.jhancock.com.

Q. How can I contact the John Hancock Life Insurance Company with questions?

A. Call the John Hancock Customer Service Center at 1-888-383-2700, Monday through Friday 8:30 a.m. to 6:30 p.m. Eastern Time. The TTY number for the hearing impaired is 1-800-255-1808. You can also send an e-mail to John Hancock Life Insurance Company at gltc@jhancock.com

Q. How else can I enroll to this plan?

A. Complete an Enrollment Card that can be found in the enrollment kit. You can view a kit online or request one by calling John Hancock Life Insurance Company at 1-888-383-2700.