The Long-Term Care (LTC) Insurance screen illustrates the potential impact associated with LTC costs and how that impact can be addressed by purchasing an LTC insurance policy.
Impact Tab
The purple bar graph indicates a client's assets when they include the expense of long-term care but do not include coverage from proposed LTC insurance detailed in the action items. Existing LTC coverage from the Profile > Net Worth area will be factored into purple invested assets bar.
The value displayed to the right of the graph summarizes potential retained assets when an insurance policy is purchased to protect against the impact of expensive long-term care at the end of a client's plan.
The impact tab illustrates two things:
The effect LTC costs can have on the client's plan.
The chart on the Impact tab will initially illustrate the impact of the LTC costs reflected from the Profile > Goals screen under "Annual Retirement LTC Cost".
You can choose different options for estimated LTC costs. National average values for In-home care, Assisted living, and Nursing home are from Genworth's 2020 Cost of Care study. You can also select 'Customized amount' to enter an amount of your choosing.
We plan to update the national average costs periodically as available. When those costs are updated the updated value will automatically be incorporated in your client's plan.
The blue bars in the chart reflect the client's projected assets without any LTC costs incorporated.
The purple bars show their projected assets with the LTC costs included. The chart is a powerful visual of how LTC costs can significantly erode your clients' assets in the later years of the plan.
The graph compares two scenarios:
- The typical advising scenario which does not factor in increases expenses toward the end of the client's plan
RightCapital's insights into how expensive long-term care can be for a client.
Use this graph to indicate the value of purchasing LTC insurance to protect against such a significant drawdown of assets at the end of a client's plan and retain more business, for longer, with RightCapital!
The impact of proposed LTC insurance policies.
Under the Action Items section, enter the parameters of proposed LTC insurance policies for either client.
When information about the LTC policy is entered, RightCapital will calculate the impact of the policy on the client's projection.
The results display in the chart, as well as the net impact at the end of the plan displayed to the right of the chart.
Click on the items in the legend to add or remove them from the chart.
It can be easier to see the insurance impact if the blue bars are removed from the chart as this is a best practice for presenting the before-and-after effects to clients.
The change includes the impact of premiums on the client's plan and how insurance the projected LTC costs.
Coverage Tab
The Coverage tab gives a simple view of how much of the client's projected LTC costs are covered by insurance.
The percentage shown in the circle's center includes current and proposed coverage.
Webinar
Click here to view one of our weekly webinars illustrating the use of the Long-Term Care module. Skip ahead to 29:39 for the LTC Analysis.