Are you setting expectations with your clients about long-term care?
When discussing your client’s retirement projections have you discussed the possibility of them requiring long-term care? The cost of a long-term care crisis can quickly deplete retirement savings. Setting expectations on how much care will cost and how they will pay for it, will allow your clients to put proactive measures in place prior to an illness taking place.
These questions will help establish the framework of their plan:
Where do you want your care to be provided? Determining where care will be provided, gives your client the opportunity to research the options available in their community. Contact several home health care providers. Discuss their fees and minimums. Could their home be retrofitted with ramps and grab bars?
How will you pay for it? The National Average for a home health care provider is about $5000 a month. Do they have assets to pay for this care or does it make more sense to transfer some of the risk to an insurance company, in the form of a long-term care insurance policy? Remind them that Medicare only pays for a short period of time, if they meet the 3 day prior hospitalization rule. Medicaid does pay for long-term care but planning with an Elder Law attorney is recommended due to the Federal and State laws for transferring assets.
Is your client assuming family will provide care? Many clients are assuming that their family will provide the care that is needed. Is their family aware of these expectations? Does their family live nearby or would they need to relocate? Does their family know what to do? Can they physically provide care? How many hours per day could they provide care?
Planning for a long-term care crisis is imperative to any retirement preparations. It is our obligation as insurance advisors and planners to assist our clients in this process and advise them on the best tools for their situation. Long-term care insurance is an affordable way to transfer some of the risk to an insurance carrier. For more information on the plans available in your state, please contact one of our marketing specialists at 1-800-945-1953