November is National Long-Term Care Awareness Month, so now is a good time for financial professionals to talk to their clients about options to prefund long-term care for themselves and maybe their parents or adult children.
An LTC scenario many are experiencing
My wife’s father has lived for more than 10 years in a one-bedroom apartment in the independent living portion of a continuing care community. He really likes living there. He plays bridge 3 to 4 times a week with a group of residents. He probably reads about five books a week. For someone over age 90, he is mentally sharp, but lately my wife and her two sisters are worried that he does not always remember to take his medications. He needs a walker whenever he ventures outside his apartment. Bottom line, he really needs an aide to check on him a couple times a day. But that will cost more money, and his life’s savings will probably be depleted within the next two to three years, even without hiring an aide.
Protection from long-term care expenses
Planning for a future that could include long-term care isn’t likely to be a conversation clients want to have -but it’s one that needs to be had. Preparing for long-term care planning can help clients to take control over where they live, how they spend their time and what they do with their money. Long-term care solutions are tax efficient, protect their income and legacy, and can relieve their loved ones from primary day to day caregiving.
Help clients plan for the unexpected
Remember, no financial plan is complete if you don’t address the potential financial impact of a long-term care event. For years, financial professionals have asked clients who insist on self-financing their long-term care risk, “What asset do you want me to sell first?” To me, a better opening question is, “Do you want to control where you receive your long-term care?” Everyone wants to stay in their own home as long as possible. A hybrid long-term care and life insurance solution can enable a client to have a plan that aligns with their care preferences and help them stay at home longer, even if it is a more expensive option.
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Lincoln is here to help support you as you continue to build your business and guide your clients to the Life solutions they need.
Financial Professionals, please connect with your Lincoln Wholesaler for more information about long-term care solutions
About the author
Dean F. “Chip” Chatlain is an advanced sales consultant for Lincoln Financial Distributors. He has over 40 years of experience as a tax attorney, with more than 35 years in the life insurance industry. His perspectives stem from a solid background in individual and corporate taxation as well as a thorough understanding of the tax advantages of life insurance.