How Much WILL A Clients Pay for Each $1 of Long- Term Care When Care is Needed?
Regardless of which state your client resides in, there is a default plan to settle their estate if they don't have proper planning, and that's probate. Similarly, when it comes to Healthcare in Retirement and Long-Term Care, there is a default plan to cover those expenses until they qualify for a state's Medicaid program, and that's their personal assets. Realistically, that means engaging clients about a Long-Term Care component MUST be part of every client's comprehensive plan.
Again, absent a plan, your clients will be SELF-FUNDING ALL healthcare expenses not covered by Medicare, a Supplement, or health insurance.....
A simple exercise for clients who won't or haven't discussed Long-Term Care Plan alternatives is to share the brief video below that helps break down the after-tax cost of each dollar they would spend on care.
For those clients still insistent on self-funding their future healthcare expenses - the actual amount and duration of which are unknown - you must now help them identify the specific assets they intend to tap to cover those expenses.
The form to the right (which can be customized with your firm logo) will make the process quick and easy. Then, after being signed, this can become part of your permanent client file to provide maximum clarity for spouses wondering why their retirement income is insufficient or for children/heirs inquiring about an expected inheritance.
The critical point is that clients don't have to purchase an insurance solution for their Long-Term Care Plan, but from an advisory perspective, there must be a recognition of their intentions and confirmation of their chosen path forward.
It's pretty simple: EVERY client needs a PLAN for Long-Term Care.