Long-term care funding tends to be the afterthought of financial planning. People don’t want to talk about it and advisors don’t want to bring it up. As a result, families are clueless about how to pay for care when that time comes. We have a tsunami of Americans who will need care over the next several decades and those of us with personal experience, myself included, know all too well what that care looks like when a family member has failed to plan for it. We can do better.
November is Long-Term Care Awareness Month and a great opportunity to spread the word about LTC planning and funding solutions. It’s also a good time for advisors to learn how to have the conversations that can lead more Americans to consider their own plan. But it’s not just conversations with individual clients. The conversation can and should extend to employers. The group market is growing because employers are looking for benefits that can help them retain valuable employees.
When you start a conversation about long-term care, it’s helpful to ask the right questions to get a better understanding of the client’s needs, financial situation, and what they want their experience to be. Don’t be surprised if there is a huge gap between expectations and reality. Your job is to get your clients to think critically about how they can save themselves and their families from an economic disaster.
Below are important questions to ask clients to help guide the LTC planning conversation. Each question serves as a foundation for building a comprehensive and personalized long-term care strategy.
10 Long-Term Care Questions
- What are your expectations and goals for long-term care?
Understanding a client’s expectations and goals for long-term care is crucial as it helps tailor a care plan that aligns with their personal values and desired quality of life. You want to ensure that the care strategies proposed are in sync with the client’s vision and resources.
2. Have you considered the potential length of time you might need care?
Considering the potential duration of care is important because it affects the financial planning and emotional preparedness of the client and their family. Having a plan to pay for one year of care is a much different prospect than a five- or six-year plan.
3. How do you plan to allocate your financial resources for long-term care?
As an advisor, you need to understand the client’s thought process to develop a realistic and sustainable long-term care plan, considering the client’s assets, income, family resources, and potential benefits.
4. How does the possibility of long-term care impact your overall retirement planning?
The possibility of long-term care can significantly impact retirement planning as it may require reallocating resources and adjusting retirement goals to accommodate the potential costs and care needs.
5. Are you aware of the current costs associated with different types of long-term care in your area?
Being aware of the current costs of care is essential for accurate planning. Advisors should be knowledgeable about these costs to help clients understand the financial implications and explore various care options within their budget.
6. Have you thought about the inflation rate and how it might affect future long-term care costs?
Understanding inflation’s impact on long-term care costs is crucial because it affects the purchasing power of your clients’ savings and the cost of future care. As costs rise, the amount of care they can afford may decrease unless their plan accounts for inflation.
7. How is your health and what is your family health history, and how might that influence your long-term care planning?
Uncovering health issues and family health history is important as it can indicate potential future health issues, allowing for a more tailored and proactive long-term care plan. It will help you target a product that is more suitable for the client.
8. Do you have any existing insurance policies that could contribute to your long-term care funding?
Existing insurance policies should be reviewed to ensure they align with the client’s long-term care needs and goals, as they may provide a foundation for funding.
9. What are your thoughts on long-term care insurance as a way to manage potential costs?
Evaluating long-term care insurance is essential for managing potential costs, as it can offer financial protection and peace of mind against the high expenses of extended care. Getting younger clients into a “starter” plan, one that has a minimal amount of coverage can give them a start and then they can stack another plan on top of that when they can afford to pay for additional coverage.
10. How would you like to balance the potential need for long-term care with other financial goals and legacies you wish to leave?
Balancing long-term care with other financial objectives requires a strategic approach to ensure that a client can meet their care needs without compromising other life goals or legacies they intend to leave behind. Sometimes that can be achieved, but often people realize that they will have to shift their perspective on what is truly possible.
How to Approach Employers
There are well over 50 million family caregivers in the United States, and many of them are employed. We have an opportunity to engage the business community in the long-term care funding conversation and we should be enabling them to offer solutions to employees.
When speaking with a business leader, consider asking them if they believe that they have been impacted by employees who care for family members. It’s likely that they have, which means there has been an impact on productivity as a result. Suggest that they survey their employees by using some of the questions above to find out what they understand about long-term care planning.
There are numerous products and strategies for group LTC, including affordable employer-funding options. It’s important to partner with an agency like BuddyIns to help you determine the best product and enrollment process for a specific situation as group enrollments can have complex challenges.
Let’s Work Together to Help More Families
To create a better care experience for Americans will require advisors to expand their own understanding of new funding solutions. Asking the tough questions that are designed to initiate a comprehensive discussion about long-term care funding will ensure that you have a full view of your client’s planning mindset. Remember that this can be a sensitive topic so it’s important to tailor the questions and fact-finding process to each client’s unique circumstances. Explore all available options to create a robust and flexible long-term care funding strategy.
