The emotion of care event speaks for itself. The financial impact should be explained. In detail. Over and over. Don’t stop until the client gets the picture. Cost of care in this country averages $80,000 for a Nursing home and $50,000 for part time coverage at home. Assisted Living falls somewhere in the middle. Twenty years from now, those costs will likely double. 20 years from now the last of the Baby Boomers will be entering their 70’s. LTC Planning shifts the risk off an individual and their family. Its better leverage on their money. Without shifting the risk, without planning, a person…by default is choosing to self-insure. When we can show a person how they can self-insure more effectively with insurance solutions, they can see the financial impact to their decision.
A typical standalone LTC policy costs $2,500 a year. Average monthly cost of care in this country is $5,000. So what’s more expensive? It makes good financial sense to shift the risk and do LTC planning. Concerned about having to lose in order to win? The market is ripe today with solutions that offer a promised benefit. Live to long, die too soon, maintain control over your premium. When clients have emergency money set aside for a retirement, which money can be multiplied in value…sometimes 2-4x for long term care? Why wouldn’t someone want to have their money work harder?
Syndicated financial columnist and talk show host Steve Savant interviews nationally recognized long term care author and expert Maria Sarci.