Risk of Needing Care 40% of Americans receiving long-term care are

working-age adults. (Where does the Population Live and Who Cares for Them? LTC: Diverse, Growing Population Includes Millions of Americans of All Ages,” U.S. General Accounting Office 1/01)

One-third of people having strokes are under age 65. (The News Tribune, 9/2001)

People of age 65 face at least a 40% lifetime risk of entering a nursing home - 10% will stay 5 years or longer. (HIAA, “Guide to LTCI,” 2002)

Cost of Care and Average Length of StayNursing home costs are averaging over $58,000 per year1 and with the average length of stay in a nursing home at 2.4 years2, total costs can exceed $124,000.1 Mature Market Institute, "MetLife Market Survey on Nursing Home and Home Care Costs”, 2003.2 "The National Nursing Home Survey," National Center for Health Statistics, U.S. Department of Health and Human Services, June, 2002.

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Funding Long-Term Care Money accumulated in pension, 401(k), and

profit sharing plans - as well as stocks - is in jeopardy of being lost to long-term care expenses.

24.6% of long-term care expenses are paid for out-of-pocket. (Department of Health and Human Services, HCFA, Office of the Actuary, National Health Statistics Group, Personal Health Care Expenditures, 2001)

Future Cost of Care (Calculated at a 5% compound factor)

Do you plan on spending your hard-earned investments for long-term care expenses during your retirement years?

Comparison of RiskThe risk is more common than you think. Compare the odds with other types of personal insurance. Why would you handle the risk of long-term care any differently?

Nursing HomeFacility providing all levels of care

Including medical assistance.

Home CareCare provided in the home by

Nurses, Home Health Aids, OccupationalOr Physical Therapists, and/or family members.

Assisted LivingPrecludes Independent Living

Insured does not need level of care provided in

a Nursing Home

Long-term care is custodial carethat can be provided in:

Seattle Pacific University will offer a second opportunity to enroll in long-term care insurance with guaranteed issue* (no health questions) from March 22, 2004 to April 30, 2004.

YearYear AgeAge Annual RateAnnual Rate Paid to Age 84*Paid to Age 84*

20032003 4040 $348.00$348.00 $15,312$15,312

20082008 4545 $636.48$636.48 $24,822$24,822

20132013 5050 $963.48$963.48 $37,210$37,210

20182018 5555 $1,612.80$1,612.80 $49,997$49,997

The Cost of Waiting to Purchase LTC InsuranceBased on 3 Year Plan, $3000 Monthly Benefit, 5% Compound Inflation Protection

House Fire1 in 1200

Auto Accident 1 in 240

Long-Term Care1 in 2

Disability1 in 8

Year Annual Cost

2003 $ 58,000

10 years $ 94,000

20 years $153,800

30 years $250,600

40 years $408,300

*Guarantee Issue offered to benefit eligible employees not previously declined for coverage.*Guarantee Issue offered to benefit eligible employees not previously declined for coverage.

*The average age of needing care is age 84.*The average age of needing care is age 84.

Planning for the Unpredictable

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Important Features of SPU’s Benefit for Long-Term Care

Assisted Living Facility – 100% of benefits will be paid if care is received in an assisted living facility licensed by an appropriate agency (if required) to provide ongoing care and services.Nursing Home Facility – 100% of benefits will be paid if care is received in a long-term care facility or nursing home. This is an institution or a separate part of the hospital that provides skilled, intermediate or custodial care under state licensing and certification laws. Professional Home Care – 100% if benefits will be paid if care is received in the home, including visits by a licensed home health care provider during which skilled nursing care, physical, respiratory, occupational, dietary or speech therapy or homemaker services are provided. Portability at group rates – When an employee retires or leaves the company, the insurance company will bill directly to the designated home address. Premiums and benefits will remain the same as purchased. Pre-existing conditions – Any health condition the active employee had prior to the effective date of the policy will not be excluded from the policy.Guaranteed Renewable – The policy cannot be canceled or terminated because you get older or your health deteriorates, as long as your premiums are paid.Tax Qualified Plan – No taxes are paid on benefits received up to $220 a day. In certain states, the law allows employers to take advantage of the tax credit or tax deduction.Waiver of premium – Insurance provision that allows the insured to stop paying premiums during the time that benefits is received.

 What’s The Cost?

When considering a plan that’s best for you, ask yourself these questions:

How long do I want the care to last? (Benefit Duration)How much money do I want for care? (Monthly Benefit)Do I want my benefits to keep pace with inflation? (Compound Inflation Protection)

Your individual cost for insurance will depend on your age on the effective date and on the plan and options you choose. The chart below provides an example plan design and rates for selected ages.

Seattle Pacific University will offer a second opportunity to enroll in long-term care insurance with guaranteed issue* (no health questions) from March 22, 2004 to April 30, 2004.

Sample AgeSample Age Monthly Rates based on 3 year Monthly Rates based on 3 year duration, $3000 per month, 90 Day duration, $3000 per month, 90 Day

Elimination Period, No InflationElimination Period, No Inflation

2525 $9.30$9.30

3535 $10.20$10.20

4545 $15.60$15.60

5555 $24.60$24.60

6565 $51.90$51.90

SPU Sample Rates

“Long-term care is generally referred to as “custodial care,” a supportive type of care for people who are cognitively impaired or who are unable to perform activities of daily living, such as bathing and

dressing, due to an accident, an illness or just advancing age.”

Plan Design FeaturesPlan Design Features Voluntary Voluntary Base Base PlanPlan

Your Buy Up Your Buy Up OptionsOptions

Nursing Home Facility Nursing Home Facility Monthly Benefit Amount:Monthly Benefit Amount:

$1,000$1,000 $2,000 to $8,000$2,000 to $8,000

Assisted Living Facility Assisted Living Facility Benefit Percent:Benefit Percent:

100%100% 100%100%

Professional Home Care Professional Home Care Benefit Percent:Benefit Percent:

100%100% 100%100%

Facility Benefit Duration:Facility Benefit Duration: 3 Years3 Years 6 Years and 6 Years and UnlimitedUnlimited

Elimination Period:Elimination Period: 90 Days90 Days 90 Days90 Days

5% Compound Inflation:5% Compound Inflation: NoneNone 5% Compound 5% Compound InflationInflation

SPU Plan Design