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Your clients know that long-term care risks exist, but most would rather not think about them.  Instead, they falsely believe that the financial problems caused by living too long will not happen to them, but only to others.  To illustrate the problem, a recent study completed by the American Academy of Actuaries stated that many baby boomers can expect to have a retirement lasting 30 years.  The study also reflected the fact that a 65 year old couple has a 58% chance of one of them living to 90 years of age, and a 28% chance of one of them reaching 95 years of age.  So how does a client insure against the financial risks related to long-term care?  The easiest way is for them to purchase individual long-term care insurance ("LTCI").

Modern LTCI generally covers home care, assisted living care, adult day care, respite care, hospice care, and nursing home care.  Planning with LTCI insures that your client will have control over how much long-term care that they can receive, the quality of care to be provided, and who may deliver the care to them.  Whether your client is critically ill or aging, previously purchased LTCI - while they were in good health, will ensure your client's independence and dignity during the illness or until their final point in life.

So who is a good prospect for LTCI?  A good prospect generally includes:

• A woman who is actively providing long-term care to her husband or his or her parents;
• A man who is paying for assisted living or nursing home care for one, or both, of his parents;
• An individual who does not want to be a burden to his or her family, or who has no children, siblings, or other family members, and/or insists on making charitable bequests;
• A widow who insists on making annual gifts to her children from the growth on her investment portfolio;
• A couple that has a large age disparity between them; or
• A couple that wants a complex estate plan, which may include a credit shelter trust, family trust, cottage trust, educational trust, charitable trust, or an irrevocable life insurance trust.

As you may or may not know, Krause Financial Services provides LTCI - traditional and partnership policies.  Should you be interested in receiving an illustration, or would like to simply speak with a representative, please feel free to contact my office.