THE WEALTH PROTECTOR
is
Uniquely Designed for Long Term Care Asset Protection

THE WEALTH PROTECTOR uses a Flexible Premium Deferred Annuity for the future need and a Single Premium Immediate Annuity for the present need. The immediate annuity is qualified to make monthly payments under a variety of options in order to qualify you for Federal Laws that enable you to avoid paying thousands of dollars for nursing home costs.

THE ESTATE BUILDER
is
Designed for Asset Growth and Asset Protection Against the Effects of Long Term Care

THE ESTATE BUILDER comes to you in two parts. Part A is a Single Premium Life Insurance Policy. This life policy will pay the death benefit to your beneficiary and assist them in paying any taxes due from your estate. If your spouse is the beneficiary, this benefit will help them to lead a normal life. Part B is THE WEALTH PROTECTOR to aid in providing liquidity, increasing your estate, and provide protection in the case of Long Term Care.

There are Federal laws that will enable you to avoid paying thousands of dollars out of your pocket for nursing home costs. The government will not notify you of your eligibility. You must find out for yourself.

It is predicted that healthy seniors between the ages of 65 and 78 have a 55% chance of entering a nursing home. The average stay in a nursing home is 2.8 years. Who will pay? There are only three possibilities: 1) The family; 2) Medicaid; or 3) Long Term Care (LTC) Insurance. Since very few people have LTC Insurance, virtually all nursing home expenses will be paid by Medicaid and/or the family. Nursing homes typically cost over $40,000 per year. These costs can be devastating for most senior citizens and their families.

What is Medicaid? Medicaid (MediCal in California) is an entitlement program created by the Social Security Act, Title XIX. It is the primary provider of Long Term Care benefits for senior citizens today. Many seniors believe they can look to Medicare to pay for Long Term Care. However, if fact, Medicare only pays up to 100 days for particular types of Long Term Care. Medicaid is often needed during those 100 days and after the period is over. Medicaid benefits have become the premier safety net for most seniors. Financial and Estate Planners cannot overlook Medicaid planning to protect and preserve the assets of their senior clients.

Everyone is entitled to the Medicaid program under the right circumstances. Proper advance planning is necessary to assure those "right" circumstances and preserve your hard earned assets. Too much of the following assets will keep you from qualifying: cash, stocks, bonds, IRA's, CD's, real estate, life insurance cash value, second homes, etc. A single person is allowed up to $2,000 in cash, a primary residence and personal items. An at-home spouse is allowed a macimum of $80,760 in cash ($81,960 on 1-1-99), a primary residence and personal items. These amounts may differ from state to state. However, in most states, the at-home spouse may have either considerable or even unlimited income when structured properly. THE WEALTH PROTECTOR is one ot he best tools you can use to structure your Estate correctly and help make your assets unavailable to Medicaid.

In order to qualify, many people choose to gift assets away. Assets cannot be given away within 36 months (currently 30 months in California) of qualifying for Medicaid. However, assets can be transferred into an annuity that allows for a monthly payout which meets Medicaid rules under the OBRA '93 (Omnibus Budget Reconciliation Act of 1993) guidelines. THE WEALTH PROTECTOR allows you to meet these qualifications.

When either spouse needs Long Term Care, THE WEALTH PROTECTOR may be converted to an immediate annuity which will qualify for Medicaid assistance. The income paid out to the at-home spouse is unlimited in some states and limited in others. In the case of the "unlimited income" states, the contribution to the long term care facility by the family would be any retirement income paid in the name of the spouse needing the care, such as social security. In the "limited income" states, when the limit is reached, the remaining income of the at-home spouse, in addition to the income of the spouse needing the care, would be the family's contributition to the care facility. Medicaid would pay the difference, thereby conserving your estate for your spouse or your beneficiary.

At the time of Long Term Care for a single person, THE WEALTH PROTECTOR can be converted to the immediate annuity with the Interest-Only-Plus-Ten option. This means that the income provided from the immediate annuity would be interest only polus $10.00 per month of the principal, thereby protecting nearly the entire principal for the beneficiary, In the last month of the life expectancy payout, the remaining principal is paid to the owner or the beneficiary in the case of death.

What happens if the laws change and the qualification requirements or benefits for Medicaid change? No one knows when and if the laws will change regarding Medicaid. The last time a significant change was made was in 1993 and any policy purchased prior to that time was grandfathered, meaning it continued to remain effective for Long Term Care Medicaid Planning. However there are no guarantees for the future. We still have every reason to believe that any policies purchased prior to any unknown future changes will remain effective and again be grandfathered as they have they always have been in the past.

THE WEALTH PROTECTOR and THE ESTATE BUILDER are products of EMPLOYEES LIFE COMPANY (MUTUAL), which has been in business for over 50 years. 1998 will be the 29th consecutive year of net operating gains and surplus growth for EMPLOYEES LIFE COMPANY (MUTUAL).

For more information regarding the coverages, Medicaid Qualification or anything else you may need to know about Long Term Care Planning, please contact:

BARRY RAHM

Not available in all states.

California Insurance License Number 0150060

Dial Toll Free

1-800-255-1932