Long‐Term Care Insurance

Long-term care (LTC) is for the aged or infirm. This is exactly why it should be included in discussions of income tax and retirement planning. Financial planners need to be aware of the effect that long-term care expenses may have on retirement income and assets, as well as the eventual estate legacy. A personal financial planner will consider a client's total insurable risk and insurance premium budget when determining the need for long- term care insurance. LTC insurance will be less expensive when purchased early in a client's life because the years until need are greater. However, clients have other insurance needs when they are young. And many clients only realize the need for LTC insurance when they become aware of the risks (usually while caring for older parents or friends). This chapter helps the students to develop an appropriate LTC insurance plan based on needs, financial resources, policy coverage, and cost.