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Prepare Your Divorced Clients For Long Term Care

Posted by BSMG on 15 Nov 2016

We've all heard the scary statistic that 50% of marriages end in divorce. While that might not be completely accurate, it's still unsettling. Life insurance and retirement plans are often big points of negotiation when it comes to dividing up a marriage, but what about Long Term Care Insurance (LTCi)? 

For clients who are going through a divorce, "in sickness and in health" is now an empty promise. LTCi is vital for people who no longer have a caretaker or previous defined plan to fall back on.

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"Till' Death Do Us Part"

For some couples, one person is the primary care taker. This is the spouse with all of the contact numbers and prescription names, while their partner is completely in the dark. In the event of a divorce, there is now a great shift of responsibility. 

Related Post: What Your Clients Should Know About Funding Options for Long Term Care  

Divorces generally cost between $15,000 and $25,000 per couple; however, if there is conflict involved, that number can dramatically increase. These are costs that are obviously not planned for, or expected. After the divorce, both parties are now living off of less income, and may have taken a hit to their retirement savings. Child support and alimony costs can also put a serious financial strain on divorcees and if a long-term care event were to occur either spouse could be greatly effected. 

Remember LTCi provides married couples with benefit options that are not available to single individuals. It is important to mention that your clients can still get spousal discount until the divorce is final. That discount will stay on the policy regardless of marital status after the divorce. 

Do your recently divorced clients have a current plan for LTC?

Related Post: Long Term Care Planning Resource Round-Up

Quick Quotes

For a 55 year old female non-smoker, if they paid $100,000 as a single payment into a linked benefit product they could have a $5,900 LTC benefit with 3% compound inflation, a $127,000 Death Benefit or 80% of their premium back.

For a 55 year old female non-smoker, if they made 10 payments of $10,000 into a linked benefit product they could have a $4,005 LTC benefit with 3% compound inflation, a $109,000 Death Benefit or 80% of their premium back.

For a 55 year old male non-smoker, if they paid $100,000 as a single payment into a linked benefit product they could have a $6,000 LTC benefit with 3% compound inflation, a $142,000 Death Benefit or 80% of their premium back.

For a 55 year old male non-smoker, if they made 10 payments of $10,000 into a linked benefit product they could have a $6,200 LTC benefit with 3% compound inflation, a $122,000 Death Benefit or 80% of their premium back.

Related Post: [INFOGRAPHIC] Long Term Care Awareness Month


Contact our LTC expert Joe Savastano for any questions or to run more quotes.

LTC Conversation Guide - Download Your Copy

Topics: Long Term Care