Long-Term Care: The Biggest Threat to Your Client’s Retirement Plan
Disclaimer: Since Medicaid rules and insurance regulations are updated regularly, past blog posts may not present the most accurate or relevant data. Please contact our office for up-to-date information, strategies, and guidance.
This Financial Literacy Month, we’re exploring the financial impact of long-term care and the importance of helping clients plan for a care need. Whether you have a client in the pre-planning stages or in a crisis situation, it’s crucial for you to have the information and products necessary to help them protect their assets in the face of long-term care.
The Realities of Long-Term Care
As the Baby Boomer generation grows older and the population lives longer, the need for long-term care is greater than ever before and will continue to grow over the coming decades. Unfortunately, many seniors believe they will never require professional care and fail to plan ahead. Throughout their lives, they’ve planned for vacations, weddings, retirement, and other major life events. But what about their future care?
In 2021, the average nursing home bill was almost $8,000/month– that’s about $95,000/year.1 With such high costs, many seniors risk depleting their entire life savings in just a few years. In fact, by 2029, 54% percent of seniors will not have enough financial resources to pay for long-term care.2 Fortunately, you can provide meaningful solutions to help your clients plan for their future care, preserve their hard-earned assets, and boost your revenue in the process.
Read More: A Financial Advisor’s Role in Estate Planning
Long-Term Care Planning Solutions
No matter which stage of the planning process a client is in, you can help. At The Krause Agency, we offer a variety of products and services designed for the senior market.
Pre-Planning
For healthy clients in the pre-planning stages, you can offer Long-Term Care Insurance, which allows them to set aside funds for future care needs. This may include clients planning for retirement or adult children who are facing a crisis situation with an elderly parent.
Crisis Planning
For clients in a crisis situation who have an immediate long-term care need, you can offer a Medicaid Compliant Annuity to convert their excess assets into an income stream and accelerate their eligibility for benefits.
The Krause Agency is here to support you throughout the entire planning process. We offer the products, services, education, and support you need for each long-term care planning case. Whether you’d like to learn more or you’re ready to get started, contact our office today!