Discussing the Rising Costs of Long-Term Care with Clients
November is Long-Term Care Insurance Awareness Month. Like other “Awareness Month” campaigns (Life Insurance in September and Annuities in June), this is a great opportunity to discuss how LTC coverage can fit within your clients’ and prospects’ retirement portfolios.
The conversation about long-term care can be difficult. Many people have yet to consider the impact it can have on their retirement. Others simply don’t want to think about or accept the fact that a time may come when they can no longer live independently.
Longer life expectancies have seen the need for long-term care increase over recent years. And as the need for LTC grows, so too do the costs. The expenses associated with long-term care are staggering. Without proper planning, those costs can quickly drain one’s retirement income, leaving family members to shoulder the financial, emotional, and physical burden of providing and paying for care.
Rising Health Care Costs
Looking at Genworth’s 2018 Cost of Care Survey, the annual national median for various types of care and services are as follows:
- Adult Day Health Care – $18,720
- Assisted Living Facility – $48,000
- Homemaker Services – $48,048
- Home Health Aide – $50,336
- Nursing Home Care (Semi-Private Room) – $89,297
- Nursing Home Care (Private Room) – $100,375
These numbers are only estimated to rise, with Genworth estimating that in 2028 (just ten years from now) the annual national median for nursing home care in a semi-private room increasing to $120,008.
When you consider that the average amount families age 56-61 have saved for retirement is $163,557, you can see how a long-term care condition, even a short one, can take a huge bite out of a consumer’s retirement portfolio. And that’s just the average. When we look at the median, the numbers are more concerning – just $8,000 for those aged 50 to 55 and $17,000 for those aged 56 to 61.
Legacy Financial Partners strongly encourages agents and advisors to use the rest of November to have LTC conversations with prospects and clients. To help, we have created an exclusive LTCI Sales kit that includes:
- LTCI Pre-Approach Letters
- Key Long-Term Care Statistics
- LTCI Client Presentations
- LCTI Concept Sheets
- True Cost of LTC Guide
Fill out the form or call 1.877.614.0141 to request your complimentary copy.