As an insurance agent working with high net worth individuals, sometimes convincing them to properly invest in their future can be a challenge. A great example of this is long-term care insurance. The baby boomer generation is aging rapidly, and many will soon require health care that goes far beyond regular check-ups. According to the U.S. Department of Health and Human Services, 70 percent of Americans 65 and older can expect to require some form of long-term care in their lives, and many health care options don’t come cheap. Of course, your clients with high net worth may balk at the idea of paying now for long-term health care insurance by saying they probably won’t need it or will be able to pay out of pocket if and when they do, but here are a few compelling reasons that they should invest in an insurance plan now:
To protect their wealth
Even an individual who has accumulated a fair amount of wealth over their lifetime may not be fully prepared for the costs that can be associated with long-term care. On average, a three-year stay in a nursing home will cost a quarter-million dollars. Again, that is just for an average nursing home. A high net worth individual is most likely going to seek out a home that offers a bit more in the way of luxury and amenities, and can therefore expect to pay more. If your client has desires to pass on their hard-earned money to their children and grandchildren, the last thing they’ll want is to run through a large portion of their savings during the last years of their life.
To allow for liquidity
While your client may have a high net worth, how much of that money can they access tomorrow? For most high net worth individuals, their money is largely tied up in assets that cannot be made liquid without a great deal of time and effort. Using long-term care insurance, your clients will not have to sell off properties to obtain the money they need to pay for their care.
To avoid burdening the family
For many older individuals who are in need of long-term care, their family will usually make the ultimate decision. When it comes to high net worth individuals, finances may not be a huge concern when deciding what kind of care they should get, but those with long-term care benefits may make the decision for an individual’s children to put their parent in a nursing home or hire an in-home caretaker an easier one. Because there is money already allocated for such care, it may reduce any friction or potential conflict that may arise. In addition, your client’s children may feel less obligated to abandon their career or social life to tend to their parents themselves.
To give themselves a high level of care
There’s no denying that not all private caretakers, long-term care facilities and nursing homes are created equal. Setting aside funds toward long-term care insurance now can ensure that your clients can enjoy a higher quality of care than they may have otherwise received if they were paying out of pocket. While life insurance is a way to ensure your clients’ families are taken care of should something happen, long-term care insurance is a way to ensure your clients themselves are taken care of.
For high net worth individuals, having the funds to take care of themselves may not be a major concern. However, with a proper long-term care insurance plan, they can give themselves the peace of mind that comes with knowing their health care will always be taken care of.
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