Many people work a lifetime to accumulate assets designed to provide them with a comfortable retirement plus an inheritance for their children.
The last thing people want to do is use their assets to pay for the long-term care services they’re likely to need.
Numbers For Consideration
Let’s say your client has $400,000 in an account intended to cover living expenses during retirement. She plans to withdraw $7,500 per month. How long do you think the money will last?
|Account Balance||Monthly Withdrawal||How Long Will it Last?|
Earning 3% compounded monthly
Inflating by 3% per year
Faced with the need for long-term care services, your client may quickly discover $7,500 doesn’t cover the additional cost of care.
Consider these monthly costs:
$7,350 per month
For a semiprivate room in a nursing home
$4,245 per month
For care in an assisted living facility
for the services of a home health aide
Which Asset Will You Use?
This is a good question to pose to potential clients who are concerned about protecting their retirement assets. While most people have designated assets for specific purposes, they probably haven’t set anything aside to pay for long-term care services.
A long-term care situation could mean:
Advantages to Having a Plan in Place
When the need for long-term care arises, having a policy in place to help cover the cost of care means a client’s retirement assets and plan can remain intact. This added measure of protection can allow your client to:
Contact your LTCi Specialist for guidance in identifying the best plan for each of your clients’ needs.