FAQs about Long Term Care Planning

FAQs about Long Term Care Planning

Our firm recently attended a continuing education session on long-term care planning, a topic with which we regularly assist our clients. One of the panel speakers, Brian Gordon with MAGA Long Term Care Planning, followed up to provide us with a helpful recap of some of the questions we tackled: Q. What’s the best age for clients to consider purchasing LTCI? A. This isn’t a question of chronological age, but rather a person’s stage of life. The best time to purchase is when: A client is financially stable and feels premiums are affordable and can be maintained. A client wants to protect retirement income. A client has limited debt. So if you have clients or family members who meet these criteria, regardless of age, now is the best time to plan for the consequences of a long term care event. Remember, the longer a person waits, the more expensive coverage will be and the more likely that a health issue could impact their premium or eligibility.  Last year, the average age of our clients purchasing new policies was 56 years old. Q. What conversation should I have with affluent clients who want to self-insure their LTC risk? A. If your clients can afford to self-insure, that’s fine. But they’ll need to plan it out with you. Ask them to identify exactly what funds they would liquidate first to pay for a long term care event and make sure it’s not already earmarked. We also would shift the conversation to catastrophic coverage.    We have many affluent clients who—after having that conversation—elect to self-insure part of their risk and obtain...