Talking Points for Long-Term Care Prospecting

One of the main reasons people plan for long-term care is that they want to protect their loved ones financially.  Planning for long-term care is an expression of love that goes beyond words. 

“It will never happen to me.” There is no other statement that so perfectly epitomizes the typical reaction when discussing long-term care planning. What happens next is simple, yet frustrating: Nothing.

There is perhaps no other unexpected life event that has more potential of causing serious, if not irreversible, consequences to a family than the need for care over an extended period of years. Many believe the death of a parent or spouse in working years is more catastrophic. Consider, however, that there is the possibility of a surviving spouse seeking employment and providing for the family. An unexpected death can also bring families closer together, rallying for a common purpose. Paying for care, potentially for an extended period of years, can completely disrupt a well-thought-out retirement portfolio and poses a financial threat to a spouse, not to mention one’s legacy.

If you were to require extended care for a period of years, there is a good possibility your children will never talk to each other again.  Paying for care can be completely disruptive to a well thought out retirement portfolio and poses a serious threat to a surviving spouse.

Providing care to a chronically ill person makes healthy caregivers chronically ill…and in many instances creates resentment.  At least one family member will have to put aside their life if a parent is no longer safe.  This has a direct impact on the children's wellbeing and family.  Providing care is rarely shared between siblings, creating friction between those who do and those who don’t.  The result is that providing care rarely brings siblings together, it tears them apart, causing irreversible consequences to present and future generations.  While most people never want to put their children in this situation, what choice do they have? 

Many people believe they can cover the cost of care. Depending on one’s assets, it may be possible. However, if assets need to be liquidated, you are exposed to unnecessary taxes, market timing risk, and liquidity concerns. Not to mention the fact that every dollar used for care today is one less dollar available to help generate future income. You may not need care, but you need to be aware of how severe the consequences can be if you do not have a plan in place.

At the end of the day, we all want our families together and safe, protected not only physically but financially. Planning for long-term care is a simple action that can be taken today to help avoid a difficult situation in the future. Developing a long-term care plan that helps to keep you home, keep you safe, and mitigates the risk to your family and their financial security, says “I love you” in so many ways. 

Marie King Colbert, CFP, CLTC, Brokerage Manager at MRW Financial Brokerage, has over 13 years of experience in life insurance, annuity, and long-term care. Serving independent advisors with case design, sales support, and underwriting to meet their clients’ goals.