What Is the Long-Term Care (LTC) Stress Test Based On?

The long-term care stress test makes a few assumptions when determining if the plan is at risk based on a long-term care event.  It assumes that the long-term care event begins four years (48 months) prior to the death of the individual, with a cost of an inflation adjusted $4,000 per month based on the national average of cost of care. The model also assumes the individual never recovers and passes at the end of the pre-determined event period.   

If the cost of care is expected to be substantially higher than $4,000 per month, an income need for "Additional Health Care Expense" under the "Debts" folder can be added to the model.   

At this time, changes to the specific LTC stress test (48-mo, inflation adjusted $4,000 per month) assumptions are not available.