A record number of U.S. households can claim millionaire status and despite what one may think, they need some long-term care planning says the director of the American Association for Long-Term Care Insurance (AALTCI).

"There were over 8.3 million millionaire households at the end of 2019 with investable assets of $1 million or more," shares Jesse Slome, director of the long-term care insurance organization.   "If they have a need for long-term care one could presume that they have the funds to pay.  But, that's exactly the reason you need to have a discussion with them."

Slome spoke to long-term care insurance professionals who market both traditional and linked-benefit long-term care insurance policies.  "In 2019, 6.71 percent of households achieved millionaire status, which is up from 6.21 percent on 2018 and 5.81 percent in 2017."  The millionaire households were spread across the country. 

New Jersey had the highest concentration of millionaire households at 9.76 percent, followed by Maryland at 9.72%.  The AALTCI director shared the top-10 states reported recently by Kiplinger's as follows.

States With Highest Concentration Of Millionaires

New Jersey  9.76%

Maryland 9.72%

Connecticut  9.44%

Massachusetts  9.38%

Hawaii  9.20%

California  8.51%

New Hampshire 8.47%

Virginia  8.31%

Alaska  8.18%

Washington  7.85%

"Most millionaire households achieved their money the old fashioned way.  They worked hard and were frugal," Slome shared with the professionals.  "That frugality which served them well in terms of building assets will come back to haunt them when they one day have a need for care.  They will put it off, enlist family and friends to become their caregivers or make due with insufficient levels of needed services."

Slome recommended agents take a different approach when discussing long-term care planning with individuals who have higher levels of assets. "Acknowledge what they have achieved but ask them to acknowledge whether they will really spend when care is needed?  Suggest that a small amount of long-term care insurance will act like a money-savings coupon for their care.  Explain that when someone else is paying some of the bill, they will access needed care faster or get a higher quality of care.," he shares.  "Millionaires understand you get what you pay for.  Do they want bargain care when they need it?

To learn more about long-term care planning and to connect with local specialists visit the Association's website or call 818-597-3227.