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Key Private Bank’s Quarterly Advisor Poll surveyed more than 147 client-facing advisors, investigating their experiences working with clients to plan for long-term care. The 12-question poll, fielded February 27, 2018 and March 16, 2018, explored the recommended timing to start long-term care planning, the biggest challenges that clients face in doing so and recommendations for communicating long-term care plans with family members.

Summary of Findings

Many advisors say that fewer than a quarter of their clients have a long-term care plan in place, citing timing and other priorities as the biggest factors for not having long-term care planning discussions.

Approximately what percent of your clients currently have a long-term care plan in place?

58%

of advisors say fewer than 25%

22%

of advisors say 25-50%

7%

of advisors say 50%-75%

1%

of advisors say more than 75%

22%

of advisors say they don't know

Starting a Long-term Care Plan

  • Half (50%) of advisors also say that a good time to begin long-term care planning discussions with clients is at the outset of their relationship.
  • Additionally, 46% of advisors say clients should start preparing for long-term care costs between the ages of 40 and 50.

The Complexities of Long-term Care Planning

Advisors agree that there are various complexities to long-term care planning, but the most complex component is getting clients to plan in advance:

  1. Convincing clients to put a long-term care plan in place in advance of needing one (52%)
  2. Helping clients increase savings for long-term care costs without substantially impacting other financial goals (e.g., retirement, children’s education, etc.) (44%)
  3. Forecasting caregiving needs and addressing coordination of care (38%)
  4. Transfer of financial risk to another vehicle (e.g., insurance), rather than paying full cost of care out of pocket (26%)
  5. Ensuring dollars intended for family members and legacy are not absorbed into cost of care planning (e.g., charitable giving, education, etc.) (24%)

Supporting Long-term Care Wishes

  • When it comes to long-term care, most clients would prefer to stay at home and remain completely independent (96%), and the majority (88%) of advisors think it is somewhat likely that clients will be able to.
  • Despite this preference, many advisors say only some (55% of advisors) or hardly any (22%) clients are communicating their wishes with their family.
  • While 72% of advisors say purchasing a hybrid long-term care and annuity policy is the best way to plan for long-term care costs, over half (55%) of advisors say clients prefer to self-insure.

Disclosures

This piece is not intended to provide specific tax or legal advice. You should consult with your own advisors about your particular situation.

Any opinions, projections or recommendations contained herein are subject to change without notice and are not intended as individual investment advice.

Investment products are:

NOT FDIC INSURED NOT BANK GUARANTEED MAY LOSE VALUE NOT A DEPOSIT NOT INSURED BY ANY FEDERAL OR STATE GOVERNMENT AGENCY