Do you or your wife have a pre-existing health care issue which will not be covered by Medicare?
$1.5M invested in a 25 year annuity at 1.5% (assumed 4.5% risk-free interest rate minus 3.0% annual inflation, gives a reasonable estimate of inflation-adjusted dollars) would produce an annual payment of $71,325, about 19% more than what you are earning today.
$71,300/year would cover a Medicare Supplemental Policy and a lifetime Long Term Care Insurance Policy with probably more than $50,000/year left over assuming you are both healthy.
Your CFP sounds like he is quoting generic numbers.
No, the 1.5 number includes money for daily sustanance and healthcare. Sorry for not making that more clear.