Chances are, 70% of Americans will need long-term care at some point in their lives. Some will choose to self-fund that care, potentially putting their retirement assets at risk. Others will choose to be proactive by opting for long-term care coverage.
As you continue reaching out to clients virtually, it’s important to provide long-term care information that is easy for them to access, understand, and apply to their own longevity planning situations and objectives. Highland is here to help. We’ve produced two videos for you to share with clients to open up the longevity planning discussion—even remotely—and help them understand some basics about available long-term care products.
Writing business in a socially distanced environment presents challenges. You’ve had to adjust the way you interact and communicate with clients, and had to rely more heavily on online platforms to help you get business done. Highland can help you simplify your virtual business.
Long-term care (LTC) is probably one of the most important and perhaps sensitive discussions you can have with your clients. There are so many variables—your client’s actual vs. estimated longevity, current vs. future health, current vs. future lifestyle—each of which change the equation. But it’s also the emotion that’s attached to the discussion; every one of your clients knows they will eventually pass away, but thinking about how, when, and in what way always brings some consternation and even avoidance.
Why would you recommend that clients with millions of dollars in invested assets spend money on a long-term care plan? Because it helps remove the risk from their portfolio. With affluent clients, it’s not whether they can afford to pay for potential long-term care needs. But is it an expense they want to incur at an unpredictable time in their lives?
Nancy suggests adding long-term care planning to your agenda with clients at their annual review or financial analysis. She knows they will be relieved that you have addressed the topic. When clients are open to it, arrange a conference call and introduce Nancy as a member of your team.
One reason your clients trust you with their assets is your recommendations help them sleep at night. Whether the market is up or down, your advice provides peace of mind that clients count on. It’s time to put that calming effect to work on the topic of long-term care. You owe it to your clients to talk about incorporating Longevity Planning in their financial plans. Breakthroughs in medicine, technology and public health have led to longer life expectancies. Your clients can look forward to many years ahead.
In your client meetings, which spouse has more influence on decisions? Perhaps you have noticed women are taking an increasingly larger role when couples implement your recommendations.
Clients rely on your expertise and recommendations when it comes to protecting assets and planning for their future. In many cases, your guidance is essential to their peace of mind. That’s especially true with decisions about long-term care insurance. In fact, 90 percent of consumers surveyed agree their financial advisors should discuss LTC plans with them.
The buzzwords over the past 10 years have been asset accumulation and asset allocation. I propose that if you jump on this bandwagon now, you may be following the wrong paradigm. Don’t get me wrong, asset accumulation and allocation are still very important. But the next big wave in our industry will be asset distribution.
Average life expectancy now hovers around age 79 in the U.S. and age 84 in Japan, and it’s rising fast worldwide. By 2030, one-fifth of the U.S. population will be 65-plus. In South Korea, life expectancy is expected to reach 90 years of age. What does all this mean for clients and their advisors? Nancy Simm, our Director of Long-Term Care and Longevity Planning, has spent most of her adult life working in this field and thinking through the ramifications. The upshot? When it comes to long-term-care coverage, everyone should have a plan for it.