The Mandatory Nature of Long-Term Care Planning


It’s a expenses are one of the few mandatory expenses during retirement.  Starting with Medicare Part B premiums deducted from social security benefits, or the higher premiums for higher income earners, then potential Medicare Supplement plan premiums included in the staggeringly high out-of-pocket retiree healthcare expenses estimate from Fidelity Investments.  However, all those premiums, plans, and costs exclude Long-Term Care (LTC), making that a specific planning item that cannot be ignored.


In a “post-pandemic” world, the advisory community should be giving LTC more serious planning considerations, especially when a large percentage of your clients will need some form of LTC, and too few have planned for it.   Addressing this topic is a great way to positively impact your clients, and even those “reluctant” to address the matter should implement some kind of formal Long-Term Care (LTC) Planning.    


While experience tells you many clients won’t implement an insurance-based LTC Plan, that doesn’t eliminate the reality, risks, or the need for a formal planning component.  The planning tool to the right can be customized for your firm or practice to help you introduce LTC as a required planning topic as follows...   


  • First, explain how and why LTC must be addressed as a financial planning topic, and click on the hotlink to incorporate the Nationwide Cost of Care Data


  • Second, help them understand that not having a formal plan actually is a plan, much like not having a will or trust is a plan that results in probate.  Lack of planning defaults to self-funding, thus the “mandatory” nature of Long-Term Care Planning.


  • Finally, as their advisor, a funding source must be identified and memorialized.....or an alternative, formal LTC Plan should be discussed.  


We are confident you can use this tool effectively, and we look

forward to hearing from you when you have cases to discuss.


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