It was a pleasure to share “Our Tale of Three Mothers” during our June 23, 2020 “Coffee with C3”.
We imparted fifteen minutes of insights to our group of Zoom attendees, at the same time, shared virtual coffee. Below is a snapshot of key insights discussed regarding the current long-term care (LTC) environment and the impact on planning.
What we knew BEFORE the pandemic:
- 3 out of 5 people turning age 65 will need LTC services;
- 3 out of 4 caregivers are female;
- Over half of caregivers say their LTC responsibilities impacted their jobs; and
- 9 out of 10 surveyed wish their advisors would discuss LTC planning.
Changes we see impacting planning:
- Increasing interest/focus on receiving in-home care;
- Expected continued increases in home health care costs;
- Care (and cost) in facilities is anticipated to change as new protections/procedures are implemented; and
- Question for high net worth is liquidity, not solvency. Liquidating assets can be expensive.
Questions for individuals and their families:
- What are your “must haves” for LTC?
- Do you have confidence in your current plan?
- Where & Who will provide care? How will they be paid?
- When was the last time you reviewed your various medical/directive forms?
Shifting LTC risk to insurance carriers:
- In the past, only “use or lose” products were available. Premiums were not guaranteed.
- New “hybrid” products offer a combination of LTC and life insurance coverage. Someone always benefits.
- Improved income tax strategies have enhanced funding options.
- Underwriting changes due to COVID-19 will certainly occur in the future.
- Continued low interest rate environment will have a negative impact on the pricing of long-term care products.
We hope you benefited from the information and look forward to collaborating with you!
Interested in the next Coffee with C3? Contact Rebecca Bates.