Long-Term Care Insurance – A Glimpse Into The Future
As you sell long-term care insurance, you’ll encounter a fair number of clients to plan to “self-fund” their future care. They believe they have saved enough to cover the cost any future scenario – from needing a home healthcare provider to requiring comprehensive Alzheimer’s care.
While it’s commendable that these clients have prepared for the future, there’s a good chance they are calculating future long-term care costs using today’s dollars.
For example, if your 55-year-old client lives in Illinois, the current monthly cost of a private room in a nursing home is $5,870. It sounds like a lot, but in reality this amount is cheap compared to how much it will cost in 25 years, when she is 80 and actually needs care. In fact, in 25 years, that same room will cost $19,878 per month. For a client who plans to self-fund, the difference between $5,870 and $19,878 can be mind-changing.
To help you prepare for these client conversations, we’ve included links to two carriers’ Cost of Care Studies below. If you click through, you may discover that there downloadable apps, so that you can reference this information from your smart device during presentations.