According to the American Association for Long-Term Care Insurance (“LTCI”), 20% of the elderly require more than five years of long-term care, another 20% require two to five years and 30% require two years or less. Only 31% require no long-term care at all. But discussing this issue with clients can be difficult it is a grim topic, and the problems it addresses aren’t usually an immediate concern. Clients may also have preconceived notions and not realize that current LTCI options include comprehensive coverage. Nor are they likely aware that LTCI can be a valuable estate planning tool for high-net-worth clients if estate preservation and bequests are a goal.
Based on the aforementioned statistics, it is my opinion that as long as a client purchases a LTCI plan which covers current costs, and the plan has an inflation rider to keep up with future costs, the average client should purchase at least 2 years worth of coverage. For those clients with a higher net worth, I would recommend 5 years worth of coverage. Krause Financial Services offers LTCI plans to clients throughout the United States.
