November is Long-Term Care Insurance Awareness Month. Like other “Awareness Month” campaigns (Life Insurance in September and Annuity in June), this presents an opportunity to discuss how a certain solution—in this case, 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 do not 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. As the need for long-term care 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 2020 Cost of Care Survey, the monthly national median for various types of care and services are as follows:
- Adult Day Health Care – $1,603 (down from 1,625)
- Assisted Living Facility – $4,300
- Homemaker Services – $4,481
- Home Health Aide – $4,576
- Nursing Home Care (Semi-Private Room) – $7,756
- Nursing Home Care (Private Room) – $8,821
These numbers are projected to go up significantly over time. The Genworth study shows that in less than 10 years, the costs of many of these services will have increased by more than $1,000.
Ready for Retirement?
According to a TD Ameritrade report published in January 2020, many people under the age of 60 are financially unprepared for retirement. The report found that 41% of those aged 40 – 49 and 37% of 50 – 59-year-olds have less than $50,000 saved for retirement. Only 20% of the former and 16% of the latter have secured LTC insurance.
Half the retirees who took part in the report stated they retired earlier than planned. Among those, 38% cited health issues as the reason for early retirement. Connecting the dots, you can see that many people are putting themselves at risk for financial struggles in the event of a condition requiring long-term care. Are your clients at risk? Are you talking to them about LTCI coverage?
Discussing LTCI Coverage
As November brings us closer to the end of another tumultuous year, now is the time to discuss with clients and prospects how LTCI coverage can enhance their retirement portfolio—and even serve as a form of asset protection. To help agents and advisors take advantage of LTCI Awareness Month, IAMS, Inc. has prepared a complimentary LTCI sales kit.
This package includes:
- LTCI Pre-Approach Letters
- Key Long-Term Care Statistics
- Understanding LTC and Chronic Illness Riders Presentation
- LTCI Client Presentations
- LTCI Concept Sheets
Click below to request your LTCI Kit.
