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The Quote I Get Asked About the Most

If you have ever heard me speak, you have heard me say that not planning for long-term care is the main reason people outlive their money. In the past, we have had great sources for this statement like the one from Chicago Sun Times financial columnist Terry Savage that says:

What's the greatest risk in your financial plan? We've seen how a stock market crash can devastate retirement plans. But the greatest risk is not the longevity of this bear market, or even another bear market. It's the devastating cost of long-term care. And just as many pre-retirees didn't take the possibility of declining stock prices into consideration when making their retirement plans, most people don't consider the costs of living longer and the health-care and lifestyle implications.20

Great quote, isn't it? But it's from her 2009 book, The New Savage Number: How Much Money Do You Need to Retire?

Recently, Gary Wright from Premier Life Planning in Ft. Worth, TX contacted me to find out a current source for this essential fact and I was delighted when one came to my inbox a few days ago, thanks to the October 27th LTC e-Alert from the Center for Long-Term Care Reform.

Richard W. Johnson, director of the Urban Institute's Program on Retirement Policy in Washington DC was quoted in the October 21, 2014 issue of The Washington Post as saying:

Long-term care costs are the most serious
financial risk facing older Americans today.

Combine this with the projection from Fidelity Investments that an American couple retiring at an average age of 65 would accumulate $220,000 in unreimbursed medical costs in retirement* (NOT counting LTC) and you have the perfect storm!

And it's relevant to look at this chart that I have in all my books that plainly illustrates that half a million won't even last four years when only one person needs care:

Year assets at start
of year
assets at end
of year
1 $500,000 $60,000 $75,000 $20,000 $385,000
2 $385,000 $61,800 $78,800 $15,400 $259,800
3 $259,800 $63,700 $82,700 $10,400 $123,800
4 $123,800 $65,600 $86,900 $5,000 ($23,700)
5 ($23,700) $67,500 $91,200 ($900) ($183,400)

Note: "Income Needs" is the portion of household income needs that the assets had been relied upon to provide and assumes annual inflation of 3%. "LTC Expense" is based on a typical annual cost and is subject to 5% annual inflation. "Investment Yield" is assumed at 4% annually after taxes.

The most important question before us today is

"How many people will outlive their money because YOU
didn't tell them about long-term care insurance?"

If your family member, friend, neighbor – you name it – was floundering in the ocean, you would do everything you could to save them, wouldn't you?

That's exactly the importance I want you to attach to making people aware of long-term care insurance.

Too expensive you say? The annual premium for a 60 year old couple is about what it would cost for a month of either 10 hours a day of home care or care in a nursing facility…and that's a pool of dollars that will be worth $675,000, payable at $20,000 a month in 25 years for EACH of them, so $1.3 MILLION total. All of a sudden, $6000 a year or $605 a month doesn't look so bad, does it?

The Value Proposition

In other words, Mr. and Mrs. Prospect, is it easier to
come up with $6000 a year... or $6000 a MONTH?

And that's a 3 year plan that starts at $200 a day so almost full coverage in most parts of the country.

If they can only afford a one-year benefit for half the premium, that's a year that allows time to adjust to the caregiving situation so they aren't caught totally unprepared. Then your question is even easier to answer:

"Is it easier to come up with $300 a month or $6000 a month?"

Last question:

How are you going to tell people they need to plan?

The ABCs of Long-Term Care Insurance of course—all can be branded with your information!

I carry 2-3 in my purse at all times so it's easy to hand them to people wherever I am and send them to every prospect anywhere in the country…and yes, they've made me a lot of money. But the most important thing to me is the families I've impacted with them…families like the Ducketts. This video is about Helen Duckett, but Mr. Duckett is now on claim.


Putting my money where my mouth is, take advantage of the November Long-Term Care Awareness Month 10% OFF SALE: (expires midnight November 30th).

These little books aren't expensive anyway but this shows you how important it is to me to have them used to spread the word about the importance of having a plan for LTC. They accomplish my 2 minute educational presentation to sell the need, plus address individual, worksite (yes, it's still available!) and combo products…so don't wait—order today so you can be handing them out next week!!

Phyllis Shelton

* "Stop Freaking Out About Retirement", Consumer Reports, October 2014 (print), p. 27


LTC Consultants provides long-term care insurance training to agents and educates consumers with information about long term care insurance. This website contains reports and articles about caregiving, assisted living, nursing homes, aging, senior living and elder care, home health care and other long-term care related articles. Order Phyllis Shelton’s Protecting Your Family with Long-Term Care Insurance with articles about whether or not to self-insure or buy combo life insurance and annuity policies or a traditional LTC insurance plan. The book also contains ideas for people who don't qualify for LTC insurance such as Medicaid, life settlements, reverse mortgages, critical illness and also contains in-depth information about Medicare, Medicare Advantage and Medicare Supplements.


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