LTC Quick Facts
LTC Quick Facts for Financial Advisors
The High Probability:
Understanding the Likelihood of Needing Care
Studies from the U.S. Department of Health and Human Services consistently show that a significant majority of individuals will require long-term care services. This isn’t just for a few; it’s a planning consideration for nearly all clients.
Implication for Advisors: It’s no longer a question of “if” for most clients, but “when” and “how to pay for it.” Incorporating LTC planning is not an optional add-on but a core component of robust retirement strategies.
The Devastating Cost: Financial Impact of Care Services
According to Genworth’s Cost of Care Survey (annual data), median costs vary significantly by state but are universally high.
- Home Health Aide: $30-$35/hour, or $60,000 - $70,000+ annually for 40 hours/week.
- Assisted Living Facility: $54,000 - $60,000+ annually.
- Nursing Home (Private Room): $100,000 - $115,000+ annually.
Implication for Advisors: These costs are often underestimated by clients. Without a plan, these expenses can quickly deplete portfolios designed for retirement income, potentially forcing uncomfortable conversations or client distress.
The Retirement Threat: Protecting Assets and Income Strea
- A single year of nursing home care can erase years of careful savings. For a couple, multiple years of care could jeopardize the financial security of both spouses and their legacy. Traditional Medicare and standard health insurance policies offer virtually no LTC coverage.
- Implication for Advisors: Proactive LTC planning through insurance or other strategies helps protect other retirement assets, such as investment portfolios, pensions, and Social Security, ensuring they can be used as intended.
The Family Burden:
Beyond the Financial Impact
Research from organizations like AARP highlights that family caregivers spend an average of 24 hours per week providing care, with many spending 40+ hours. This often leads to missed work, career stagnation, and significant emotional stress, anxiety, and depression.
Implication for Advisors: While you primarily address financial needs, acknowledging the family burden reinforces a holistic approach. LTC planning is not just about money; it’s about preserving dignity and protecting loved ones from overwhelming responsibilities.
The Solution Gap: Why Advisors Need a Partner
- Surveys of financial advisors consistently reveal that while a high percentage acknowledge the importance of LTC, a much smaller percentage actively incorporate it into all client plans due to lack of product knowledge, time constraints, and regulatory complexities.
- Implication for Advisors: This gap creates an opportunity for specialized partners like LTC Partner Pro. You don't need to become an LTC expert yourself; you just need a trusted resource to extend your capabilities.
The Advisor's Opportunity:
Enhancing Your Practice
Advisors who offer comprehensive LTC planning report higher client satisfaction, increased referrals, and stronger client retention. Protecting clients from this major risk solidifies their trust.
Implication for Advisors: Partnering with LTC Partner Pro allows you to provide an essential, often underserved, service. This strengthens your overall value proposition, helps protect your client’s AUM, and positions you as a truly holistic financial planner.