Why Financial Advisors Should Prioritize Long-Term Care Planning

The Growing Need for LTC Solutions

As life expectancy increases, the likelihood that clients will require some form of long-term care (LTC) rises significantly. Studies show that nearly 70% of people over age 65 will need LTC at some point. For financial advisors, ignoring this risk can mean leaving clients unprepared for one of the largest expenses they may face in retirement.

 

 

Why LTC Planning Matters

Long-term care is more than just a financial consideration—it’s about protecting independence and family dynamics. Without planning, families often face difficult choices that can disrupt retirement income strategies and strain relationships. For advisors working with clients across regions like Minneapolis, Fargo, and Sioux Falls, local healthcare costs and facility availability make the conversation even more pressing.

 

 

Case Study #1: Protecting Assets for Retirement

A 62-year-old couple with strong retirement savings wanted to ensure healthcare costs wouldn’t derail their income strategy. By incorporating a hybrid life insurance and LTC product, they secured coverage that protected their retirement accounts while giving them flexibility if care was needed.

 

 

Case Study #2: Supporting Family Caregivers

A widowed client in her late 50s worried about becoming a financial burden to her children. With a traditional LTC policy, she not only secured coverage for future care but also gained peace of mind knowing her family could focus on emotional support rather than finances.

 

 

Advisor Takeaways

Advisors should be proactive in raising LTC planning with clients, especially:

  • Pre-retirees in their 50s and early 60s.
  • Clients with significant retirement assets at risk.
  • Families who want to preserve wealth across generations.

 

Your Role as an Advisor

These conversations aren’t always easy, but they build tremendous trust. Clients look to you not only for wealth-building strategies but also for protection against real-world risks. Including LTC planning in your toolkit ensures you’re delivering holistic financial guidance.