Will I be a burden to my kids in old age?
Any Long-Term Care (LTC) planning should start by creating an LTC is Needed What-If scenario. Similar to disability, the LTC is Needed What-If creates a health event that takes place over a specific time period and creates a number of variables including an additional expense.
Be sure to complete the Report Parameters in the What-If to use the Cost-Benefit of Long-Term Care Insurance report. The Long-Term Care Insurance reports look for this What-If scenario to be applied to solve for any LTC insurance need. If you have questions about LTC costs, the Cost and Payment Options report discusses costs based on the Genworth Financial Cost of Care Survey 2020. Once you’re comfortable with your projected What-If scenario begin by discussing the Cost of Long-Term Care.
- The Cost of Long-Term Care Report looks at the scenario you’ve created and shows the total cost over the entire LTC duration. The report provides estimates on how costs will break down between LTC Costs and Total Expenses.
- The Long-Term Care Wealth Effect Report shows the true costs of LTC, taking into account, not just lost income and additional expenses, but the loss of possible investment on that money.
- The Long-Term Care Gap Analysis Report looks at the cash flow gap created by an LTC event. Often clients will be able to afford the LTC event and still have assets remaining. Some clients won’t have the necessary funds to cover an LTC event. With this report that you can show them how a small investment in LTC insurance coverage can spare their family thousands in expenses.
Finally, it’s possible that the same dollar invested in coverage could be better invested today. That’s where the Cost-Benefit of Long-Term Care Insurance report comes in.
- The Cost Benefit of Long-Term Care Report looks at the what-if scenario including the Report Parameters tab to demonstrate the cost-benefit value of a long-term care insurance policy. Are they better off investing in an LTC insurance policy or investing that money today? This report shows them—based on the annual premium of the insurance—just how much they would need to save and the annual rate of return required to provide the same total benefit.
