Considering long-term care coverage? Here’s a reality check

Advisors


Long-term care has been a hot topic since about 2000, said Brock Jolly, certified financial planner and partner and co-founder at Veritas Financial. He attributes this increased interest to market declines, modern medicine keeping people alive longer and the evolution of the LTC industry.

Pricing insurance products has been tricky, he noted.

“The big unknown is how long the person may live,” Jolly said. “Life insurance is easy to price, because we have actuarial tables, but with long-term care it’s not about mortality, it’s about morbidity.”

Interest is escalating.

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“In the last year and a half, I’m seeing more interest from baby boomers going through it with their parents,” said Kerry Peabody, long-term care specialist at Clark Insurance. “They’re saying, ‘I don’t want my kids to go through this.'”

In fact, adult children are getting more involved, said CFP Eric Mancini, a wealth advisor with Traphagen Financial Group.

“We have seen where sons and daughters are paying the long-term care premiums,” he said.



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