Wonder what the advisor's haul was on that LTC policy? More than peanuts I am sure! Not planning on managing to $0 myself, but seriously, so what if they really do go "broke" at 86? In reality, they would probably still have a house they can liquidate/mortgage, SS (maybe 3K+ a month?) and Medicare. My grandmother effectively went "broke" at 80 when my grandfather passed and his pension ended (no survivor benefit). She doesn't live a life of luxury, but she does get to take a vacation every year, treat the family to dinner from time to time, buy Christmas presents and generally gets along just fine.
According to the AARP in 2012 the amount for a years premium would be about 2,800 a year. If the policy was in effect for 15 years and the premiums went up by 5% a year then over the 15 years the premium would be about $60,000.
The agent would collect about 50% of year one and 5% of every other year.
On 15 years that about $4,300 with 1,400 being in year one.
Of course that was 2012 – the premium now is probably much higher plus the rate increases per yer would be too.
It wouldn’t be a shock to see that amount doubled. And there were 2 of them…
Of course the financial advisor sint; going to make much out of telling them what they need to here. Like stop acting like royalty and actually live in your very acceptable means.
Not enough details to judge but a big house, couple of cars and several expensive holidays a year do add up…