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Long Term Care Target-Map™

What is the Long Term Care Target-Map?

Michael Schwabe avatar
Written by Michael Schwabe
Updated over a week ago

Framing a Long Term Care Target-Map

The purpose of an individual Long Term Care plan is to illustrate the financial impact of a Long Term Care event on a person's finances. Project the "What you Have" scenario to age 80 without entering any specific figures for "What you Have," as the current shortfall represents the anticipated costs of a Long Term Care event. At this point, pause to discuss the strategy for funding this shortfall. Typically, we begin by demonstrating a self-funding scenario, activating savings, qualified funds, and so on, which may lead to full funding. Then, present an alternative scenario that includes a Long Term Care policy providing an annual benefit (usually by adding a custom cash flow). This approach addresses the need as well, but the key difference is that with the policy in place, we are not paying dollar-for-dollar; instead, we receive a significantly better value by utilizing the policy.

Definition: The Long Term Care Template attempts to pre-fill standard funding requirements for a household member’s Long Term Care event based on the financial professional's preferences.

Default Preferences: The Long Term Care default preferences supplies the starting point for the following funding requirements. We call funding requirements: "What you want".

  • Long-term Care Annual Expenses

  • Home Modification

  • Care Coordination

  • Caregiver Training


Most Helpful Tips

  • The template assumes the event lasts for 4 years (Duration of Contributions field).

  • The Target-Map is produced with a default expected net return on investment. Feel free to change that to help your illustration, eg. change default 5% to 2% or 0%, if the applied assets used to fund the event have a different blended rate.

  • This Target-Map template uses hard-coded values that can be refined to suit the needs of the client.

  • Each requirement can be individually edited on the "What you want" page.

  • Don't settle for our default descriptions. Rename line item descriptions as desired by clicking either the Edit link or Description link.

  • Add more requirements using the Add Desired Cash Flow button on the "What you want" page.

  • Use the Start Age field only to define a one-time funding requirement at a certain age/date (leave the end age blank) on the "What you want" page.

  • Target-Maps recognize the financials relevant to the event and apply them to help fund the need. Additional funding may be applied by the advisor on the "What you have" page.

  • Insurance recognized by te Target-Map may need to be evaluated and adjusted for accuracy on the Asset-Map. Click the specific insurance tile on the Asset-Map and check the Essentials and Details tabs.

  • Double-check COLA, Start and End ages, and Loss to Tax values. Ensure they are aligned with the funding requirements and edit as needed.

  • New asset financials added to the Asset-Map will appear on a Target-Map's "What you have" page, but will not be applied to fund the need until the associated check box is checked.

  • By design, Target-Maps are independent from one another. Funding used by one Target-Map is not automatically removed from other Target-Maps.

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5/2025

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