Some of the advisors here already recommend long-term care insurance (LTCI) on a regular basis. But what if you’re just starting to think about the topic?

It’s great that you’re thinking about it.

Everyone needs to plan for the eventuality of needing long-term care (LTC) at some point in their lives, but it begins with you, the advisor, starting the conversation. This crucial time will help you develop an effective plan to include the right resources and tools to provide your clients with adequate care, should assistance be needed. 

What is long-term care?

It is important to ensure your clients understand what LTCI is and what it provides.

A majority of advisors address LTC in terms of delivery systems such as home-health-care, assisted living and nursing facilities.

However, LTC is a chronic care need that occurs because of an accident, illness or series of events leaving a person completely compromised physically and/or mentally. Often times the person is in need of assistance with daily activities, such as eating, bathing, etc.  

Ask the right questions.

Advisors have the difficult task of making the possibility of a catastrophic unexpected event a potential realistic scenario for clients to consider. The questions you should ask to help your client prepare for this scenario:

  • Who would take care of you? 
  • Who would provide your care? 
  • What would be the financial consequences? 

These questions are a crucial part of the conversation and building a sound financial plan. 

Consequences

Lack of LTC planning can result in someone acting on your client’s behalf, regarding their financial security. That person is most often a family member and likely one of their children. If clients don’t take financial control now, then their children will have to make the tough decisions concerning care and may also assume the responsibility of funding this care. Often times, this pulls the family apart, when they should be coming closer together. Urging your clients to plan ahead for the need of LTC will prevent their family from being faced with this burden in the future.

As advisors, we have a responsibility to protect our clients and help them prepare for unforeseen challenges. LTCI is one of the most important solutions in a financial plan to ensure clients are provided adequate care when the time comes. Having the difficult discussions with your clients early on can safeguard their future and protects future generations.