Credit: Cathy Yeulet/Shutterstock
Long-term care is one of those risks most people know exists, but don't really want to think about.
The reality is that while the financial impact of a long-term care event usually doesn't show up until our 80s, the decisions around how to address that risk often happen decades earlier.
Helping clients understand that trade-off — and decide when to act — is an important role for all financial advisors to play.
The "Rule of Thumb": Start the Conversation Around 50
Many experts suggest age 50 as a good time to begin serious conversations about long-term care planning.
At that stage, clients are often in a better position to afford coverage, and they're still young enough that underwriting may not be a major hurdle.
When thinking about long-term care planning, clients typically weigh the cost and affordability of coverage, their likelihood of needing care and the peace of mind they want to achieve.
For many clients, age 50 strikes a reasonable balance across all three.
But What About Clients Under 50?
So is 35 too young? What about 40?
While 50 is a useful guideline, it's not a hard rule.
In fact, there are situations where it makes sense to explore long-term care planning much earlier — even for clients in their 30s or 40s.
Younger clients may want to secure coverage if they:
◆ Have the income and cash flow to comfortably afford it.
◆ Want the lowest cost per dollar of coverage.
◆ Already have solid emergency savings and retirement plans in place.
◆ Are concerned about health issues or family history that could affect future insurability.
◆ Like the flexibility of hybrid solutions that can be used for care, cash value or legacy planning if long-term care is never needed.
For these clients, locking in coverage early can feel less like "planning for old age" and more like checking a major risk off the list.
Reasons a Younger Client Might Wait
On the other hand, securing coverage early isn't always the right move.
It may make sense to hold off if:
◆ Cash flow is tight, or priorities are shifting.
◆ The client expects major life changes and wants flexibility.
◆ They believe their money is better used elsewhere for now.
◆ They're healthy, with no family history suggesting elevated risk.
In these cases, delaying the decision can be a thoughtful choice, not an act of avoidance.
The Type of Coverage Matters
Timing decisions are closely tied to how a client chooses to address the risk.
Traditional stand-alone long-term care insurance comes with the possibility of future premium increases.
Buying too early can mean paying into a policy for decades, with the risk that costs rise over time.
Hybrid solutions, such as long-term care benefits attached to life insurance or annuity contracts, offer different trade-offs.
These may include guaranteed premiums, single pay options or alternative uses for the policy if long-term care is never needed.
In some cases, annuity-based solutions can even work for clients with health challenges.
Helping Clients Make the Right Trade-offs
The likelihood of needing long-term care is high, but the timing is uncertain — and often far off.
Deciding when to plan for it depends on where clients are in life, what else is competing for their money and how they feel about risk and peace of mind.
Some clients benefit from addressing long-term care early and moving on with confidence.
Others are better served by waiting until the risk feels closer and their financial picture is more settled.
Advisors play a critical role in helping clients understand these trade-offs, avoid overconfidence in "self funding," and make informed decisions about a risk that can have a meaningful impact later in life.
Jerry Patterson is head of advanced wealth solutions at Cetera.
Credit: Cathy Yeulet/Shutterstcok
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