Long-Term Care (LTC) Planning is one of the most important, yet fewer than 20% of Americans¹ have addressed it meaningfully in their financial, retirement, estate, and risk management planning.  While too many clients and their advisors shy away from the topic, avoiding these conversations will only lead to significant consequences for those needing care and their loved ones providing/managing it.  

Starting the conversation is often challenging, but with the right questions, you can guide clients to recognize the importance of planning for likely risks they face heading to and through retirement.  Below are tough, open-ended questions designed to start those necessary conversations and challenge clients to consider their future care needs……Even if the answers aren't always obvious.

When did you start planning for Healthcare In Retirement?

Most people will answer they haven't, yet they've had Medicare taxes withheld from every paycheck since their first job.  This question reveals the hidden assumption that Medicare covers all healthcare costs, a belief that can leave clients exposed to significant out-of-pocket expenses.

What percentage of your assets are currently allocated to pay for healthcare expenses not covered by Medicare or Health Insurance?

The answer is often "none," but the truth is that 100% of their assets are unknowingly allocated to healthcare until they qualify for Medicaid.  This question reframes the conversation, showing clients the financial risk of not planning for LTC costs.

How did you calculate the type and cost of your healthcare in retirement beyond what Medicare, MedSupp, or health insurance covers?

Most clients haven't done a detailed calculation, which opens the door to discussing tools and strategies—like the HALO Assessment—that can help them quantify those costs accurately.

List the most significant risks you face during retirement.

When asked to list their retirement risks, clients might focus on market downturns, inflation, or longevity. Now, there is a perfect opportunity to highlight the often-overlooked risk of needing LTC, a potential threat to their health, finances, and family/loved ones.

When you need care excluded by Medicare, MedSupp, or Health Insurance, which account(s) would you tap first to pay for that care?

This question encourages clients to think beyond traditional coverage options and consider their resources, as most haven't considered how they would fund care outside of insurance coverage.  Now, you've opened the door to discussing various funding strategies based on their answers and the potential financial strain of self-funding care costs.

What resources have you allocated to fund care should you need assistance with activities of daily living?

By asking about their existing resources, you can reveal whether clients are prepared for the financial burden of care or solutions to fill any gaps, leading to a discussion about LTC costs or insurance-based planning options.

How do you envision your family/loved one reacting or adjusting to your need for help with activities of daily living or a cognitive impairment?

This brings up the emotional and practical implications of needing care, emphasizing the burden that could fall on family members if proper planning isn't in place.

How have you addressed the gaps in your Medicare or health insurance, especially for care not covered by those programs?

Many clients believe they are covered for ALL of their healthcare needs in retirement, and this question challenges that assumption, opening up a broader discussion about the gaps in coverage and the role of proper planning.

When and how did you structure your estate planning to protect your assets from potential care needs?

This question invites a deeper conversation about protecting their estate and legacy, a subject many clients care about but may not associate with LTC planning.

Describe your plan to ensure your care needs won't become a physical, emotional, and financial burden on your family or loved ones if/when your health deteriorates in retirement.

This emotionally charged question helps clients think beyond the financial aspects and consider the personal impact on loved ones if the unexpected happens. It forces clients to think about the worst-case scenario, providing a perfect opportunity to introduce LTC planning to safeguard their future.

Using these tough questions, you can engage clients in meaningful conversations about their future, help them realize the risks they face, and guide them toward the crucial decisions that will protect their finances, family, and quality of life as they age.  Long-Term Care Planning is more than just another retirement planning checkbox; it's a crucial component that safeguards the assets and lifestyle they've worked so hard to build.

¹ OneAmerica survey by Hanover Research (March 2022) and the Nationwide Retirement Institute LTC survey (May 2023), conducted with LIMRA 

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