Meeting

Report

September 9, 2003
Charter Date: December 1, 1916

MIKE JETTE
Carroll Financial
Long-Term Healthcare
By: Jim Kelley

Henry Lafferty introduced Mike Jette, with Carroll Financial, to make a presentation on long term care insurance. Mike mentioned that long term care insurance (LTCI) 20 to 30 years ago was not an issue. Due to people living longer, this type of insurance has become an important consideration.

Mike stated that there were seven traps to avoid in looking at LTCI. First trap – Focusing only on price. Comparing the price of LTCI is comparing apples and oranges. There are over 100 different LTC policies in North Carolina. The cheapest may be the worst for an individual.

Second trap – Waiting too long to buy LTCI. The longer you wait the older you get and the more LTCI costs and the greater risk you won’t be able to qualify. Thirty to 40% of individuals are denied this type of insurance after being screened.

Third trap – Picking poor companies. Look at the financial ratings of the companies and the premium rate stability of the carriers. Several low cost carriers are now in financial trouble.

Fourth trap – All or nothing mentality. Deciding against or for a Lexus when a Honda might do. Something that’s affordable might be better than nothing.

Fifth trap – Doing what your neighbor did. Don’t assume your neighbor knew what he was doing. Read the details and get educated on the basics.

Sixth trap – Doing nothing…without a good reason. This usually comes in the form of expecting Uncle Sam to pay for your care. Sometimes doing nothing is the right strategy. Some good reasons include having more money than you can spend (estimated at $1,000,000 or more), not being able to afford it and having a state of health that won’t qualify.

Seventh trap – Combo policies…keep it simple. These insurance policies are very complicated. They have a lot of moving parts, which means a lot can go wrong.

In closing, Mike gave us the LTCI facts by the numbers: Fifty percent of all policies are written in ten states (NC is not one of those); In 1990, the average age of a policy owner was 72 – in 2001, it was 62; The average cost per year of a policy is $1,001 for age 40, $1,369 for age 50, and $2,988 for age 60; There are 137 companies selling LTCI; In 2001, there were $839 million paid in claims; In 2003, the average semi-private room in a nursing facility was $153; The average home health care service is $17.29 per hour; There is a bill in Congress(#2096) that would make the premium for LTCI deductible; There is a current tax credit of up to $350 for a policy premium.

Head Table:
Tom Robertson, Joe Becker, Brenda Lea, Henry Lafferty, Susan Hutchins, Robert Freeman; Invocation: Leroy Mayne
Visitors and Guests:
Price Gwynn; Health & Happiness: John Rogers; Club Education: John Lassiter; Song: Thomas Moore
 

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9/11 Scholarship Golf Classic Update September 16, 2003 Raintree Country Club 1:00 Shotgun Start (captain’s choice format)

All Rotarians are invited to the dinner and festivities beginning around 5:00pm Directions: From Downtown Charlotte take Providence Road to Highway 51W and turn right. Turn left onto Raintree Lane (approximately ½ mile down Hwy 51). The clubhouse is about ½ mile on your right.

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EXCELLENCE IN MANAGEMENT AWARD

The Charlotte Rotary Club, The Charlotte Business Journal, and the Charlotte Chamber have joined to sponsor a community-wide search to identify the most exemplary manager in the region. This fall, the sponsors will choose the 16th winner of the Excellence in Management Award, which will be presented at the Rotary Club meeting on October 21, 2003. When nominating your choice, list extraordinary achievement citing examples of excellence and how they reflect credit to the manager and his/her organization. Consider the following qualities of a good manager: fairness in working with all employees; visionary leadership; consistency in judgment and decisions; flexibility to apply policy; knowledge of work skills; perceptiveness of employee and customer needs; sharing of values and knowledge; fostering relationships; communicating goals effectively; commitment to excellence; continuing improvement achievement; and community involvement. Nominations are to be sent to: The Charlotte Chamber, PO Box 32785, Charlotte 28232, Attention Stacey Ellis by September 22nd

2003-04 RI Theme

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