People have lots of questions about long-term care: Is the insurance worth it, given how insurers have been jacking up premiums? If you’re going to raid your own coffers to pay for long-term when and if you need it, how much money do you need to have saved? And people have plenty of experiences to share, too–horror stories of insurers haggling over claims and foisting premium increases on seniors living on fixed incomes, as well as more positive tales of parents’ long-term care policies that paid for themselves many times over.
Why LTC Needs to Be Included in a Retirement Plan, Pt. 2: Five Strategies for Communicating With ProspectsNovember 14, 2017
By Dr. Sandra Timmermann Gerontologist
How do financial professionals and sales associates talk to clients about the subject of long-term care in a way that doesn’t scare them and can help them think about an uncertain future? One person told me “I’m scared enough already, I don’t need to hear more statistics about how I will need long-term care.” Here are five ideas worth considering in helping clients understand the value of long-term care planning and why they should get started sooner rather than later.
By Dr. Sandra Timmermann Gerontologist
Dr. Sandra Timmermann is a nationally recognized gerontologist and expert in aging and retirement. AXA is now working with her to provide you with information around aging issues and options to address the potential need for long-term care. As part of her work, she covers retirement finances, family needs and intergenerational relationships, housing and aging in place and other transitional topics.
When people transition from work to retirement, they are thinking about their new life stage holistically. The fun part is their new-found freedom—to play more tennis, to sleep later, to do some consulting on their own time, to travel. They also think about their family and grandchildren, whether to move or to stay put, how to create a meaningful life after having focused on work, their legacy, and of course if they will have enough money to last a lifetime
Long-Term Care Awareness Month 2017
Stand-alone long-term care insurance may still be going through tough times, but long-term care (LTC) planning is starting to become a standard part of any thorough financial planning conversation.
Bill Nash, vice president for insurance solutions distribution for Lincoln Financial’s MoneyGuard product, and Mike Hamilton, a Lincoln Financial vice president and head of MoneyGuard product management, talked about the shift recently during an interview in New York.
Lincoln offers MoneyGuard, a life-LTC hybrid product, and it also offers other types of life insurance and annuity riders that can help purchasers pay for long-term care costs.
Nash said he thinks financial advisors are much more interested in LTC planning now than they were even 10 years ago.
Half of consumers would let others worry about their care
By Michael S. Fischer ContributorThinkAdvisor
Being able to pay for care is adults’ greatest concern when it comes to aging, Genworth said, but just one-fifth of the participants in a recent survey the company sponsored told pollsters they had taken steps to prepare for long-term care expenses.
In addition, only half of those surveyed said they would take personal financial responsibility for their own care as they age.
By Marlene Y. Satter ThinkAdvisor
Genworth’s annual study on the cost of care nationwide, which includes home care, assisted living facilities, etc., is not reassuring
In this year’s version of Genworth Financial’s annual study on the cost of care nationwide—not just in nursing homes, which are less and less on the forefront, but also care provided at home, adult day care and assisted living facilities—the news is not reassuring. Costs have risen steadily, with those for licensed homemakers—those who provide what the study calls “hands-on personal care” for patients still in their homes—rising the fastest, increasing 6.17% just since last year.
For the 70% of people older than 65 who the experts say will need long term care at some point in their lives(1), the costs just notched up again.
According to the Genworth 2017 Cost of Care Survey released Sept. 26, the annual median cost of long term care services increased an average of 4.5% from 2016 to 2017, the second-highest year-over-year increase for nursing homes and home care since the study began in 2004 and nearly three times the 1.7% U.S. rate of inflation.