Long Term Care Planning

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Why Americans are Not Prepared for Long Term Care

long term careMany Americans just can not afford long term care regardless of the preparation. We all know that we need long term care insurance but what about the cost each month to pay for it. It is a known fact that without it if we can not qualify for Medicaid it will be extremely hard to pay for it once the need arises. Below is an article that identifies why we are not prepared for long term care.


Article about Long Term Care

A recent survey conducted by Lincoln Financial Group, “Managing Long-Term Care Risk,” revealed some surprising reasons why Americans, aged 18 and over, are so unprepared to meet their long term care expenditures in retirement. An astonishing 73% of the survey’s respondents significantly underestimated the costs associated with long term care. Perhaps more troubling, only 22% of respondents believed that they would ever need long term care. In fact, the risk that someone who is presently 65 will need long-term care at some point in their future is closer to 70%.

By underestimating the costs associated with long-term care and the likelihood of eventually needing long-term-care services, Americans will continue to be vastly unprepared for this major retirement risk.

Even the respondents who worked with a financial planner were not adequately informed or prepared for the potential risk of long term care. Less than 40% of respondents with a financial adviser had ever discussed long term care planning with their adviser. While the topic of long term care planning can be difficult because it forces individuals to face their own frailty and mortality, it is a crucial conversation to have with clients to plan for a secure retirement.


The long term care discussion should be comprehensive, include facts about the risks and costs, and provide clear explanations about the variety of long-term planning options now available.

Remember that long term care planning is not just a decision about whether to buy traditional long term care insurance or not. There are plenty of other options available. Advisers should be prepared to present the possibilities to clients and their families so together they can formulate a plan tailored to the individual’s needs.

While long term care insurance is specifically designed to help fund long-term-care expenditures, it can be very expensive and not everyone can qualify for coverage. However, in the past decade many so-called hybrid products have been developed that combine the benefits of long-term-care insurance with either a life insurance policy or an annuity. These hybrid products can act as a multipurpose utility tool for retirees, providing them with multiple forms of insurance coverage and a degree of flexibility not found in traditional long-term-care insurance.

In addition to insurance, Medicaid can be a primary funding…..

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Source: Clients need prep for long-term care