For the past couple of weeks, I’ve been spending time in meetings with advisors, product experts, industry stiffs, and a whole bunch more. One thing that that is sitting with me like a rock in my shoe poking into my sensitive arch is this – the conversation focuses on averages.
In my family, average is not acceptable – including extended care.
When I was in college, my great-aunt and godmother took my room when I left for Vermont and occupied it for 6 years before moving to assisted living then a nursing home then hospice. And, that lasted just over a decade!
So, personal experience leads me to say this – I do not buy into averages.
I will take it a step further by saying that in my family, they are meaningless. Here are averages that are quoted most often:
2.2 years for male
3.8 years for female
8 years for Alzheimer’s
90% of claims are less than 5 years
Let me share actual durations of care in my family and you judge how those averages stack up.
Grampa F – 6 years (4 in home; 1 assisted living; 1 nursing home) died age 79
Grammy F – zero years – died age 71
Grampa Mc – 8 years (7.75 at home; 3 months in hospice) died age 84
Grammy Mc – 7 years (7 at home) died at age 82
Aunt Doris – 16 years (1 year at home; 15 years in memory care) died age 88
Aunt Amelia – 10 years (6 at home; 3 assisted living; 1 nursing home) dies age 85
Aunt Lillian – 15 years (2 at home; 13 years in memory care) died age 89
Aunt Lena – 5 years (4.5 at home; 6 months in nursing home) died age 87
Aunt Anna – 18 years (16 at home; 2 years nursing home) died age 88
Aunt Marcela – 8 years (7.5 at home; 6 months hospice) died age 81
Aunt Eleanor – zero years – dies age 82
Aunt Rose – 9 years (4 years home; 4 years assisted living; 1 year nursing home) died age 86
Aunt Flossie – 15 years (6 at home; 9 years nursing home) died age 92
Uncle Larry – zero years – died age 93
My mom & dad are still living and healthy
The average duration of care for the men excluding my dad is 4.7 years.
The average duration for the women excluding my mom is 9.3 years.
The average duration for my aunts with Alzheimer’s is 15.5 years.
Look at my the history and my family and tell me that planning to the average is a smart move.
Here is a way to close the year on a strong note. Review your book of business and identify your clients who are over 75 and own annuities that are on the sideline and earmarked for an emergency. The share the story how that money can be transformed into a tax-free long term care insurance strategy. That is what the million dollar annuity strategy is all about. Learn more about it at https://fridayswithfisher.com/million-dollar-annuity/.
My “big ask” of you for the million dollar annuity strategy is to identify 3 or 4 annuity owners 75 or older who might be viable candidates for our leverage strategy then give us a call.
Fridays with Fisher 
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