The point of a long-term care insurance policy is to protect your assets during a long-term care event. Think of how a moat protects a castle. Your LTC policy (moat) slows the onslaught and gives you time to defend your assets (castle). The bigger the moat, the more time you have.
Your clients, a king and queen (both age 55), have a $1 million castle and are preparing for battle. You have the good fortune of assuring them that they don’t have to mortgage the castle to build a good moat.
The average cost of homecare (castlecare?) is $30/hour or approximately $5,000/month based on a 40-hour workweek. A benefit of $5,000 per month, compounding by 3% each year, will give them $500,000 (of moat) to protect their $1 million castle. This moat plan comes out to just $474 a month in combined premium—a manageable premium for a solid moat.