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