Long-term care is one of the most talked about subjects in the financial services industry; but despite all the talk, it is estimated that only 10% of Americans have long-term care (LTC) coverage. In fact, according to the Nationwide Retirement Institute survey, 71% of pre-retirees say one of their top fears in retirement is health care costs spiraling out of control, yet 60% haven’t discussed those concerns with their spouse, children or financial advisor. LTC needs may be a significant part of health care costs in retirement, yet it is clear people are still not taking action. Presenting LTC solutions to a client with successful results can be challenging, but once we understand some of the roadblocks, we can avoid them and help direct clients toward a more positive and comprehensive outcome. Long-term care coverage may have more negative connotations with clients than any other financial product an advisor works with. What follows are five tips that an advisor can use to help redirect efforts down a more positive path of discussion and hopefully, to completion of a client’s LTC plan. Click here for a detailed explanation of each.
- Start the conversation with a focus on home health care
- Take the “good, better, best” approach
- Women buy long-term care, men buy returns
- The death benefit provides true leverage with a decent rate of return that can be illustrated. The secondary concern must also be met
- Your choice of words is crucial to success
Bonus tip: If possible, find assets that can be repositioned before the appointment