As the year closes, financial advisors and clients alike are focused on tying up loose ends, tax strategies, charitable giving, retirement contributions, and portfolio reviews. But one crucial topic often gets left off the year-end checklist: long-term care planning.
While it’s not always the easiest conversation to have, discussing long-term care (LTC) before year-end can help clients enter the new year with a more complete and secure plan. The best time to plan for long-term care is before it’s needed, and a thoughtful discussion now can prevent major financial stress later.
Read More: How to Initiate Meaningful Conversations Around LTC Planning
1. Why Year-End Is the Perfect Time to Talk About Long-Term Care
The end of the year naturally sparks reflection and planning. Clients are already reviewing their goals, budgets, and protection strategies, making it a great time to assess whether their current plan includes potential long-term care needs. A year-end review also provides an opportunity to:
- Evaluate cash flow and savings that could support care costs.
- Review insurance policies and identify potential coverage gaps.
- Coordinate with tax and estate planning strategies for efficiency.
These conversations fit seamlessly into broader financial checkups and allow advisors to position LTC planning as part of overall wealth preservation and family protection.
2. The Cost of Waiting
One of the biggest mistakes people make is waiting too long to plan. Long-term care costs continue to rise each year, and the likelihood of needing care increases with age. Without a plan, these expenses can quickly erode savings and reduce a family’s financial flexibility. Addressing LTC early allows clients to:
3. Framing the Conversation: From Fear to Empowerment
Long-term care planning doesn’t have to feel daunting or negative. Framing it as an act of empowerment and control can make the conversation easier and more productive. Try positioning the discussion around questions like:
- “How would you like your care to look if you ever need help in the future?”
- “Who would you want making care decisions for you?”
- “Would you prefer care at home, in an assisted living community, or another setting?”
These questions help clients think about quality of life and choice, rather than just cost or insurance.
4. Affordable Ways to Build a Plan
Not every client needs or wants a large long-term care insurance policy. Even a modest benefit can make a meaningful difference. For example, a policy that covers part of the cost of home health care or assisted living can help stretch other income sources and preserve savings. Advisors can also explore:
- Hybrid life insurance with LTC riders
- Annuities with care benefits
- Short-term care insurance
- Health Savings Accounts (HSAs) for tax-efficient funding
- Self-funding strategies using designated investment accounts
The key is to tailor the approach to each client’s situation, balancing affordability with meaningful protection.
5. Making LTC a Routine Part of Year-End Reviews
To keep long-term care from being overlooked, advisors can integrate it into their standard year-end planning checklist, alongside retirement contributions, tax-loss harvesting, and insurance reviews. Here’s a simple framework:
- Review current protection strategies (life, disability, health insurance).
- Estimate potential long-term care costs based on lifestyle and location.
- Discuss care preferences and family considerations.
- Identify funding sources or gaps.
- Develop an action plan for next year.
This structured approach keeps the conversation focused and productive.
6. A Strong Finish Sets Up a Strong Start
Closing the year with a conversation about long-term care helps clients start the new year with clarity and confidence. It reinforces your role as a comprehensive advisor, one who looks beyond investments and tax strategies to the bigger picture of financial security and family well-being. By adding long-term care to your year-end planning checklist, you’re not just checking another box; you’re helping clients prepare for life’s uncertainties and build a more resilient financial future.
Read More: The Power of Planning: A Smart, Client-Centered Approach to Long-Term Care Insurance
Long-term care planning is one of the most impactful steps clients can take to protect their independence and assets. As you wrap up your year-end meetings, make space for this critical conversation. The peace of mind it provides is one of the best year-end gifts you can offer.