November is Long-Term Care Awareness Month: How to Start the Conversation with Your Clients
November 13, 2024 | 5 min read
For financial advisors and insurance professionals, one of the most valuable services you can offer clients is helping them prepare for unexpected health events. Long-term care (LTC) planning is an essential part of this conversation, as it can protect clients and their families from the financial and emotional toll of extended care. Since November is Long-Term Care Awareness Month, it’s the ideal time to discuss the importance of LTC planning with your clients.
Projecting the Need for Long-Term Care Protection
Many clients underestimate their likelihood of needing long-term care, often assuming that their retirement savings or health insurance will cover these expenses. However, about 70% of people over age 65 will need some type of long-term care during their lifetime, which Medicare and traditional health insurance typically don’t cover.
To begin the conversation, ask clients to think about their goals for the future and how LTC needs might impact those plans. Here are some questions that can guide the discussion:
– What is your plan if you or your spouse require extended care?
– How would the costs of long-term care affect your financial goals?
– Are you concerned about becoming a financial burden to your family?
These questions help clients consider the potential impact of long-term care on their finances and lifestyle. Positioning LTC as a crucial component of financial resilience can make the concept more relatable and actionable.
What Does Long-Term Care Cover?
Long-term care encompasses a variety of services designed to assist individuals who are unable to perform basic daily activities on their own due to aging, illness, or disability. These services include:
– In-Home Care: Help with daily tasks such as bathing, dressing, and meal preparation, allowing individuals to remain in their homes.
– Assisted Living Facilities: Residential care that offers support with daily activities in a community setting.
– Nursing Home Care: Provides intensive, round-the-clock medical care for individuals who require constant supervision.
– Adult Day Care Services: Daytime programs that offer support and socialization in a structured environment.
Since these services can be costly—often reaching $100,000 annually or more—it’s important to highlight how a well-structured LTC plan can protect clients’ savings and ensure access to high-quality care.
Educating Clients on Product Options
Once your clients recognize the need for long-term care protection, introduce them to the available product solutions. Today’s market offers several options, each with unique benefits that can be tailored to individual goals and financial circumstances:
1. Standalone Long-Term Care Insurance
This is a traditional LTC policy designed specifically to cover long-term care expenses, including nursing home stays, assisted living, and in-home care. Standalone LTC insurance typically offers strong coverage and flexible benefit options. However, one downside is that if clients don’t end up needing care, they won’t see a return on their premiums, which can be a deterrent for some clients.
2. Hybrid LTC Insurance
Hybrid policies combine long-term care benefits with life insurance. If a client requires long-term care, they can draw on the policy’s benefits. If not, their heirs receive a death benefit. This option appeals to clients who want LTC coverage but are concerned about “losing” their investment if they don’t end up needing care. Hybrid policies may also offer guaranteed premiums, making them more predictable for budgeting.
3. Life Insurance with an LTC Rider
For clients who want the security of life insurance but also recognize the importance of LTC planning, life insurance with an LTC rider may be the best fit. These policies allow clients to use a portion of their death benefit for long-term care expenses if needed. This flexible option ensures that clients are protected in either scenario: they receive support if they need care, and if not, their beneficiaries still benefit.
By providing clients with these options, you empower them to make informed decisions based on their financial goals, risk tolerance, and family needs.
Encouraging Clients to Act Early
Long-term care planning is generally more affordable and accessible when clients act early. Premiums tend to be lower when clients are younger and healthier, and they have a greater range of options. Emphasize the importance of acting now to secure the most advantageous coverage and ensure that their future financial plans are protected.
Call to Action: Partner with Regis Financial Partners for Expert Guidance
At Regis Financial Partners, we are dedicated to helping you support your clients’ long-term care planning needs. Our expertise in LTC solutions allows us to assist you in finding the right products to suit each client’s unique circumstances.
If you’re currently working with a client on a long-term care opportunity or have questions about LTC options, contact us today. As experts in long-term care planning, we’re here to help you provide your clients with the protection they need and the peace of mind they deserve.
Let’s work together to make this Long-Term Care Awareness Month impactful by helping clients secure a future free from the financial strain of long-term care needs. Reach out to Regis Financial Partners to discuss solutions that can truly make a difference.
Note: This content is for informational purposes only and not intended as tax or legal advice. Advisors should consult with legal professionals to ensure these strategies fit their clients’ specific needs.
