What's Happening?
Financial advisors are encouraging families to discuss long-term care planning during the holiday season, a time when families often gather and can have meaningful conversations. According to OneAmerica Financial, there is a 20% increase in long-term care claims
during November and December, suggesting that the holidays are a natural time for these discussions. Despite the importance of planning, only 3% of Americans over age 50 have long-term care insurance, even though 56% of those turning 65 will need some form of long-term care. The costs can be significant, with average out-of-pocket expenses reaching $140,000. Advisors emphasize the importance of having a plan in place to avoid financial and emotional strain on families.
Why It's Important?
The lack of long-term care planning can have significant financial implications for individuals and families. With Medicare not covering long-term care costs, many may face substantial out-of-pocket expenses. This financial burden can lead to stress and potential conflict among family members. The growing awareness and need for long-term care planning highlight the importance of financial advisors in guiding individuals through complex insurance options. As the population ages, the demand for long-term care services is expected to increase, making it crucial for individuals to secure their financial future and ensure they are not a burden on their loved ones.
What's Next?
As awareness of the need for long-term care planning grows, financial advisors are likely to see increased inquiries from clients. The industry may also see innovation in long-term care products, with companies enhancing offerings to include caregiver resources and wellness programs. Advisors will continue to play a critical role in educating clients about the various options available, including hybrid products that combine life insurance with long-term care benefits. As more people recognize the importance of planning, the market for long-term care insurance is expected to expand, potentially leading to more affordable and accessible options.
