"It's a good planning tool that helps advisors estimate how much care will cost based on geographic region and the degree of care required, which is determined through an online personal assessment questionnaire ," said Michel.
The tool could come in handy for financial advisors new to the niche since developing an expertise can take years.
Seattle-based financial advisor Ted Markow spent the past 20 years developing cost projections based on experience and his professional network. Markow uses data from the State Department of Health and Social Services, nationwide studies issued by long-term care insurance companies and information culled from conversations with care coordinators, hospital discharge planners and care managers referred to him by elder law and probate attorneys.
"For projections, I use current cost of care and an escalation factor, which is higher than the current CPI because the cost of care has been going up faster than inflation," said Markow, founder of the Markow Financial Group, which has $70 million in assets under management and a practice made up of 40% who are senior citizens already living in a caregiving environment.
Szkaradek looks forward to testing the new tool.
"Prior to incorporating it into my practice, I'd want to know where the numbers came from and what data they used to come up with the actual costs," said Szkaradek.
According to Genworth, data used in calculating cost of care comes from the long-term care division's proprietary research developed over 40 years at Genworth.
About 65% of respondents to the 2012 Genworth survey said it took an urgent event, such as a hospital stay or emergency room visit, before they realized a loved one needed long-term care.
"People are living longer and when you live longer you tend to get an illness that has to be accounted for but setting aside too much money can be a problem too," said Markow. "If the cost analysis rate is too high, clients will have more money than they need, which means the beneficiaries will get more at time of passing."