As the demographics continue to skew to an older population, LTC has never been a more essential and important topic.....Given that reality, it's hard to understand how most advisors agree that discussing Long-Term Care (LTC) costs is essential.  Yet, according to a 2023 Nationwide Financial survey, only 18% of the consumers surveyed say they have discussed Long-Term Care (LTC) Planning with their advisors.

Holly Snyder, president of Nationwide's Life Insurance business,  addressed the disconnect in the survey results, explaining that advisors "need to be proactive in helping families plan for important LTC issues, including how to pay for it…..If not, financial professionals have an important role in helping them put together a plan of action," which is a multifaceted process that goes beyond paying for care.  

Unfortunately, too many in the advisory community consider funding LTC the same as planning for LTC.  Instead, funding should be just a piece of the broader LTC Planning puzzle and a component of your clients' comprehensive planning.  Funding alone is insufficient to secure a robust LTC Planning strategy, viewed when you can see the bigger picture, including the following……

LTC Needs Assessment:   The foundation of effective LTC planning lies in a thorough assessment of potential care needs.  A funding strategy in isolation is likely incomplete if it fails to account for the diverse requirements associated with a client's health, daily living activities, and a projected level of assistance when needed.  To complete this part of the process, we recommend using the Genivity Health Analysis & Longevity Optimizer or HALO to quantify longevity and project the need for care. 

Legal and Estate Planning:   Regardless of how your clients plan to fund future LTC needs, their legal and estate planning framework cannot be overstated in their LTC Planning.  Documents such as wills, powers of attorney, and advanced healthcare directives are crucial elements that contribute to the seamless execution of a comprehensive plan, even when a client is incapacitated.

Healthcare Considerations:   To access quality healthcare services, your clients access Medicare, a Medicare Supplement, or traditional health insurance.  However, LTC is an excluded expense, and regardless of the level of coverage, an LTC "coverage gap" must be addressed.  Robust LTC Planning will help close those gaps, making clients less vulnerable to the unpredictable and escalating costs of needing care.

Financial, Physical, and Emotional Toll on Loved Ones:   Quite simply, the impact of LTC on loved ones cannot be measured, and LTC Planning recognizes and addresses the potential strain on family members and friends involved in providing or managing care.

Delivery of Care:   The choice of how care is delivered is a pivotal aspect of LTC planning, and in-home care, assisted living, or nursing home options should align with a client's preferences and care needs.  Funding should complement, not overshadow, decisions regarding the delivery of care.

Funding Care When Needed:   While funding LTC is crucial, it should be considered part of a broader financial strategy, as savings, investments, and insurance products must work together to create a robust and sustainable funding structure.

Regular Review and Updates:   LTC planning is not a static process; it requires regular reviews and updates.  Life circumstances, health conditions, and financial situations can change, necessitating adjustments to all plan elements, including funding strategies.

Perhaps this will help you better understand the interconnected nature of LTC planning and begin considering all of the elements of successful LTC Planning…..and that paying for care is just one element of a comprehensive LTC plan.  By embracing this holistic approach, you can construct LTC Planning for clients to extend beyond the limitations of dollars and cents.

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