The need for long-term care has become more prevalent with the average lifespan rising. Unfortunately, many people underestimate extended medical care costs and the impact on their financial stability. As we know, planning is the key to ensuring a secure and comfortable future.
Here are a few key reasons why discussing long-term care planning with clients is essential:
- Protect Financial Assets: Long-term care expenses can rapidly deplete a person’s life savings. By proactively addressing this issue, it can help the clients protect their hard-earned assets from being eroded by unforeseen healthcare costs.
- Maintain Independence and Quality of Life: Long-term care planning empowers individuals to maintain independence and make decisions about their preferences. By discussing and preparing for potential care options, clients can have peace of mind and knowledge they are in control of their future.
- Access to High-Quality Care: Planning allows clients to explore the various long-term care options available. Options include home care, assisted living, or nursing facilities. Discuss these choices early on, and help the clients find suitable care arrangements that align with their preferences and budgets.
- Reduce Family Stress: By engaging in long-term care discussions, clients can alleviate the emotional and financial burden that their families might face when making healthcare decisions on their behalf.
- Insurance and Funding Solutions: Long-term care insurance or other financial products can play a vital role in covering future care expenses. Initiating conversations about insurance options can help clients explore suitable funding solutions and ensure they have the coverage they need.
Long-term care is a complex but rewarding business line to consult on.
Here is a summary of the four options for paying for long-term care:
Traditional Long-Term Care:
A traditional long-term care policy functions like a homeowner’s policy. Premiums are paid annually. If a covered claim is active, it is filed. However, if there is never a claim, benefits are never collected from the policy. In industry jargon, it is known as a use it or lose it policy.
Asset-Based Long-Term Care:
An asset-based long-term care policy is also known as a linked benefit policy. This type of policy offers tax-free long-term care (living) benefits in addition to or in place of a death benefit.
Life Insurance with a Long-Term Care Rider:
Life Insurance with a Long-Term Care (LTC) rider is a basic life insurance policy with a specific policy feature (rider) added at the time of application. The rider allows for a certain percentage of the death benefit to be used to pay for long-term care costs. The rider is available at an additional cost to the base policy.
Medicaid should be a last resort for LTC. Medicaid requires little to no income before individuals can receive Medicaid assistance. Medicaid is a state and federal cooperative program authorized under Title XIV of the Social Security Act. The program pays for certain medical and health costs as defined in the medical assistance program.
If you have questions about Long term Care, our team of Long Term Care experts are devoted to providing consistent and reliable support for you. EMG Insurance Brokerage is a full-service brokerage general agency based in Houston, Texas. We know it is essential for advisors to access quality products, expert advice, and cost-effective solutions. We follow market trends and continually update carrier offerings. For guidance on how to grow your business, contact us. We are here to support you.