Statistics show that nearly three-quarters of senior citizens in America today will need some form of long-term care before they die, and the cost of this care via long-term care insurance has spiraled steadily upward every year with no end in sight. As a financial advisor, your ability to provide competent advice to your clients in this area can play a key role in the success of your business. In most cases, your recommendations should be based upon the client’s asset base, probability of need and projected longevity. It is also important to stay abreast of the latest trends in these policies because the market itself is changing rapidly in response to shifts in the eldercare industry.

Getting clients to understand the need for coverage and their respective options will often take time. Make a point of going over the basic tenets of this type of care and your clients’ probable need for it at some point. Then help them to understand how LTC policies work and the basic elements that they contain, such as elimination periods, minimum and maximum payouts, daily coverage limits, types of care that are included-and excluded, benefit triggers and duration of coverage. (For more, see: Long-Term Care Insurance: Who Needs It?)

Although health care expenses are likely one of your clients’ primary concerns, many of them may be reluctant to discuss this issue with you without some prodding. Annual client checkup meetings can be an excellent place to introduce this idea for those with inadequate coverage. The best way to approach this may be to start by asking general questions about the client’s health and life expectancy. Getting them to talk about their past family medical history can often give you a good idea of the type and amount of coverage that may be needed. (For more, see: Considerations for Long-Term Care Coverage.)

Make sure that married clients understand each other’s wants and needs in this area as well; many people may be happy to let their spouse care for him or her, while others would prefer professional care that affords his or her partner greater freedom and less responsibility. But these issues need to be mapped out well in advance of the time of care in order to avoid unpleasant surprises that can damage more than your clients’ financial situations. (For more, see: Tips on How Financial Advisors Can Talk to Clients.)