Most Americans see themselves living a long life, planning throughout their working years to create a secure retirement so they can do the things they enjoy most. Yet, as 10,000 “Boomers” turn 65 every day, most ignore the impact Healthcare In Retirement and Long-Term Care (LTC) may have on their finances, family, and future.  As The Silver Tsunami approaches in 2030, the time is now to be proactive and begin the planning process to ensure Healthcare Security for clients.  Here are five tips for more effective LTC Planning.

1)  Selecting The Planning Discussion Participants...

Most financial, retirement, estate, and risk management planning is done individually or by a couple; however, your clients may want to approach LTC Planning differently.  Quite simply, when the need for LTC  arrives, it can impact many generations within a family.   Although American families communicate less effectively than ever, LTC Planning should be well understood throughout the family.  To some extent, parents, children, and even grandchildren may want to participate in the discussions. If there are clear expectations of those involved, it’s possible to avoid miscommunication, conflict, and resentment in the future.

2)  Recognize Long-Term Care Planning is a process...

Long-Term Care Planning cannot be accomplished by simply buying a product or saying "you can handle this" to clients.   It is a process that includes the coordination of insurance, financial, legal, and tax advisors to address various topics, such as healthcare in retirement, family dynamics, and even gender-specific issues etc.  

For instance, a couple in their seventies will have different needs than a single female in her sixties.   Or, the affluent will have different planning goals than those with more modest means.  In any event, a client's personal situation should drive the planning process, and a cookie-cutter approach is generally ineffective.

3)  Define the need and quantify the risks...

Long-Term Care Planning should be customized to meet the needs of the individual or client, and while it's easy to quote "average" statistics, most of your clients don't consider themselves "average".   This means it's important to define what type of care might be desired, the duration that care might be needed, and quantify the various risks associated with needing that care.  The best way to achieve all of this is by completing a HALO Assessment with your clients.

4)  Make it a component of comprehensive planning...

In the past, Long-Term Care Planning meant buying traditional insurance products, usually with “use or lose it” benefits and little cost certainty.  However, with the evolution of financial planning, a Long-Term Care plan should be positioned as a component of a comprehensive plan.  That means you must understand and consider all of today’s LTC planning solutions. While Long-Term Care Insurance (LTCi) was once the obvious solution, today, LTCi is just one of many solutions to consider, as it can be expensive and usually doesn't complement a client's comprehensive planning.  

In 2022, $4.3 Billion dollars of existing insurance, annuities, investments, or savings were utilized for Asset-Based Long-Term Care plans, often with little or no out-of-pocket cost.   For many advisors and their clients, repositioning, reallocating, or repurposing assets has become the most effective way to create the LTC component in a comprehensive plan.

5)  Work with a Long-Term Care Planning Specialist...

The biggest reason you would NOT use a primary care physician to treat you for cancer, broken bones, etc. is simple: Specialization!!   From a healthcare security perspective, and regardless of your advisory role and comfort level in discussing LTC Planning, it's not your specialty.  we encourage you to work with a specialist because the outcome or success of the planning will likely be better if you do.  

Please contact us when you're ready to begin the Long-Term Care Planning process with clients.

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