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 do not want to think about or accept that a time may come when they can no longer live independently.
Longer life expectancies have increased the need for long-term care insurance 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 Cost of Care Survey, the monthly national median for various types of care and services projected for 2025 are as follows:
- Adult Day Health Care – $2,183
- Assisted Living Facility – $5,676
- Homemaker Services – $6,068
- Home Health Aide – $6,675
- Nursing Home Care (Semi-Private Room) – $9,197
- Nursing Home Care (Private Room) – $10,326
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?
A study published by LIMRA found that someone turning 65 today has almost a 70% chance of needing long-term care services in their remaining years. Yet, few people understand long-term care insurance. LIMRA states that more people think they have LTCI than own a policy. The survey revealed that 29% of people believe they have LTCI. Actual ownership was less than 4%. Many people mistakenly believe that health insurance or Medicaid will fulfill their long-term care needs. We can attribute this to the low number of people (29%) who have put effort into researching long-term care planning. Even fewer have a plan in place.
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 economically 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:
- A fillable LTC financial and personal resources review
- Updated SPL product/company comparisons
- Prospecting letters
- National cost-of-care averages for 2024
- Fresh social images and captions
- Concept sheets, turnkey client presentations, and more
Click below to request your LTCI Kit.
