There’s no better time to start the LTC conversation with your clients than right
now. The surge in COVID-19 cases, particularly among older individuals who are the most vulnerable, puts the issue of long-term care at the top of mind for countless families. Unfortunately, many of these families across the country remain unprotected from a damaging long-term care event.
If there was ever a time to talk about LTC, it’s now. The importance of growing one’s book of business is ever-present, but networking and prospecting can be hard for some in the current pandemic environment. Why not use this time to implement your post-issue service plan, including policy reviews? Your client’s needs change and there is a continuous change in product pricing and offerings. As a result, the importance of policy reviews increases over time.
Here are three initial questions to help with getting conversations started:
- Who do your clients know who can benefit from LTC?
Most people know someone who may need long-term care services. More than likely, it may be a close family member. They may have even been a caregiver them- selves. Either way, they are familiar with the emotions and financial toll it can take on a family. As their financial advisor, you want to ensure that this doesn’t happen to them.
- What’s your plan?
Most people plan on living a long life but fail to consider what that actually means financially. As people age, the chances are that their need for care increases exponentially. Speak to clients about the impact living a long life may have on them and their families should they find themselves needing long-term care. Have they thought about who would take care of them and how they would receive care? Chances are they have not.
- How will they pay for LTC protection?
There’s a common misconception that Medicare will cover all of someone’s long-term care costs. As an advisor, you know this is simply not true. Medicare only provides short-term assistance while they get back on their feet, not a long-term event. Clients with substantial net worth may plan on self-funding LTC expenses; however, this is almost never the most efficient LTC strategy. An LTC strategy that helps leverage assets to provide much more comprehensive coverage is preferable, as well as provides tax-advantaged estate planning.
These three questions are simple, but they will certainly help you open the door to a deeper LTC conversation with your clients and will encourage them to take action.
— By Derek Wakefield, LTC and DI Specialist