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LTC Bullet:

Handy New Tool

Friday, November 17, 2000


Whenever LTC Bullets reviews a book or product, invitations to review other books and products soon begin to pour into us. We make it a practice to tip you to the best stuff, warn you about the worst stuff, and ignore everything in between. There is just not enough time for us to become the "Consumer Reports" of LTC products and services while still attending to our primary mission of public policy analysis and advocacy. Nevertheless, once in a while something very interesting comes along that we want to pass on for your review, but cannot take the time to study in great detail first. What follows is one example.

Ralph Leisle has designed a software program that allows long-term care insurance agents, brokers, prospects or advisers to ask a wide range of "what if" scenarios. He pitched it to us by ratifying one of our recommendations in an earlier LTC Bullet to the effect that most people are better off purchasing lifetime benefits than three-year plans.

Below is what Mr. Leisle has to say about his product. If it tweaks your interest, check it out. The software is available to LTC Bullets subscribers until Jan. 1, 2001 for $149. This is $100 less than the $249 retail price. To purchase, use registration number "CLTC-2000" and enter $149 on the "Special Purchase Charge Entry" form located in the "Get It" section of the web site. See below for additional pricing details.

Mr. Leisle has generously offered to donate to the Center for LTC Financing 10% of his proceeds from sales to Bullets subscribers. Thank you, Mr. Leisle, for this gesture of support.

Contact: Ralph Leisle
Phone: 800 360-9853



Wildwood, MO -- A new long-term care financial planning software program has been released by LTCi Decision Systems, Inc., a Missouri based LTC software development and consulting firm.

The LTC ECONOMIC IMPACT PLANNING MODEL was designed for use by professional advisors, their clients, and others seeking a comprehensive understanding of the financial impact of different LTC planning scenarios. Economic impact projections are based on specific planning assumptions controlled by the individual planner.

Planning variables include: client data, LTC care factors, tax on liquidated assets, loss of investment opportunity, and insurance benefit design. Generic and approximate insurance premiums are automatically calculated based on client ages, preliminary health rating, and the selected benefit design or level of insurance coverage owned or being considered. Specific premiums can be used as an alternative. Economic Impact reports illustrate the results with and without insurance coverage. The reports include graphic, verbal and spreadsheet formats to facilitate quick visualization as well as detailed review by legal, tax, and other professional advisors. An unlimited number of scenarios can be calculated for each client. The software facilitates LTC risk analysis and primary insurance benefit design which should be completed prior to the discussion of specific insurance products.

In a case study illustrated in the web site, the model projects the lifetime economic impact on the estate of Mr. and Mrs. Sample with and without insurance. Scenario "A" estimates estate erosion for Mr. and Mrs. Sample at $2.6 million without insurance and $440,000 with insurance. The cost with insurance includes premium expense, loss of investment opportunity on the premium and the portion of the cost of care not covered by insurance due to a 90 day elimination period. In this scenario, Mr. Sample needs 6 years of care starting in year 18 of a 30-year estate plan. Additional planning assumptions in this scenario include estimated current cost of care at $200 per day growing at 5% inflation. Insurance policy assumptions include 100% home care, unlimited benefit duration, 5% compound inflation, and $4,400 annual premium covering both Mr. and Mrs. Sample. Tax or other asset liquidation expenses to pay care costs are estimated at 20%. 6% is the loss of investment opportunity used in this scenario. When fully understood, the magnitude of the risk compels professional advisors to address LTC risk mitigation options with their clients, even in, or particularly in affluent households where average cost of care figures are not relevant.

The planning concept and design was created by Ralph Leisle, CLU, ChFC, owner of LTCi Decision Systems, Inc., a firm specializing in Long Term Care software development and consulting.

The LTC ECONOMIC IMPACT PLANNING MODEL sells for $249 to any professional association member or first person in a small group and $199 to each additional person in a multi-user setting. The model is also available on a quote basis for customized, private label licensing agreements and lower cost large group pricing.

Descriptive information is available at or from LTCi Decision Systems, Inc., 1608 Ridge Bend Drive, Wildwood, MO 63038 (800-360-9853).