NAIFA's Limited & Extended Care Planning Center

1 min read

46% of Financial Professionals Don't Recommend LTC Insurance

By NAIFA on 7/20/23 5:19 PM

A study conducted by OneAmerica found that 46% of financial professionals do not recommend long-term care (LTC) protection to their clients.

The study highlights a potential gap in helping clients prepare financially for potential LTC expenses. It is estimated that almost 70% of individuals over the age of 65 will require LTC services at some point in their lives, making LTC protection an important aspect of retirement planning.

7 min read

Your Wealthy Client Can Self-Insure for Long-Term Care. But Should They?

By Tom Riekse Jr. on 6/6/23 12:12 PM

Let me ask you a question. How much will your long-term care cost?

The answer, of course, is you have no idea. You may be one of the lucky ones who are completely independent and dies of "natural" causes in their sleep. Or you may be diagnosed with early-onset Alzheimer's and need expensive care for a number of years. It's not unusual for people to spend up to $20,000 per month on long-term care (I've got family experience).

It's often said that LTC Insurance is for the middle class - the poor can rely on Medicaid to pay for care and the wealthy can pay for care themselves. But is self-insuring, or to be more precise self-funding, always the best choice?

2 min read

These Two Trends Signal Much Higher LTC Costs in the Future - Regardless of Inflation

By Tom Riekse Jr. on 8/24/22 3:19 PM

Designing a LTC plan that will have appropriate benefits in 30 or 40 years can be really challenging! Despite that, many older LTC policies have actually done a pretty decent job of keeping up with the cost of long-term care. How do I know? Well, my Mom purchased an LTC Insurance policy from CNA Financial back in 1991. The initial benefit was $100 per day with a 5% automatic inflation increase benefit. Now, she is receiving care in a private room in an excellent nursing facility. The facility charges $420 per day for care, less than the $454 benefit daily benefit of the policy. The policy covers ALL the cost of her care.

Of course, that is an anecdotal example. Some policies have not kept up with the cost of care, especially those without inflation riders. Fortunately, however, many of the dire, scary predictions during the early 90s related to the cost and availability of care haven't come true. Although stressed by the pandemic, there is currently a strong infrastructure of home care, assisted living and skilled nursing facilities. People pay for care using their LTC policies, riders on life policies, or retirement savings.

Double-Digit Growth Expected in Smart Home Market

By LECP Center on 8/28/19 12:04 PM

Last June, we offered you some insights into how technology is playing into the extended and long term care market. IDC published trackers as the developments in Smart Homes market promises to impact home care is options for extended and long term care.

IDC Corporate Tracker