Honest and thoughtful answers to basic questions help advisors and clients determine if planning should include long term care risk analysis.
Unfortunately, substantial misinformation and questionable assumptions lead most planners and clients blissfully to ignore the issue or to underestimate the LTC impact on family wealth.
Using a set of questions, such as the following, may help turn things in a more productive direction.
The ‘Do Nothing’ Questions
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The first group of questions could be labeled the “do nothing” set. Here, “yes” answers will provide assurance that doing nothing is a great decision. This set could start with an agree/disagree type of general statement to the effect that, “I agree with some of the following and will continue to do nothing to mitigate LTC risk.” Then, ask for yes/no responses to the following:
1. I will never need personal care assistance from anyone.
2. I believe cost of care is insignificant.
3. Even if cost is significant, I will happily pay all care costs personally.
4. Future taxpayers will always be able to pay for my care.
5. I will happily pay taxes adequate to cover LTC costs for everyone.
6. My family and friends will provide care at no physical or financial cost to them.
7. I can invest in “My Personal LTC Fund” and do better than insurance.
The ‘Do Something’ Questions