Securing your client's retirement future from the cost of long-term care - Part II

In addition to not wanting to be a burden on their family, a key reason people buy long-term care insurance is the freedom of choice as to where and how care will be provided. And, the only way to ensure this freedom is to make provisions for a steady source of funding available through LTCI.

Once a client understands the biggest threat to his or her retirement savings is a long-term care episode, you can help design an affordable plan within your client’s budget. A good rule of thumb is to keep premiums below five percent of the annual income, including spousal premiums. For example, someone with a $50,000 annual income probably shouldn’t pay more than $2,500 in annual premiums.

Here are some additional tips for creating a program that stays within the ideal premium range:

1. Check if your state offers partnership programs, which are expanding in popularity. (Visit http://www.dehpg.net/ltcpartnership/map.aspx for up-to-date information.) If your state offers partnership plans, you can save premium dollars by purchasing less than unlimited benefits. If someone exhausts those benefits, in a worst-case situation, the state will pay for Medicaid LTCI and the amount paid out in benefits won’t be counted when applying for Medicaid.