Advisors, LTC And ‘Malpractice’

March 1, 2016 • Page 2 of 2

Long-term-care insurance is available, but it is expensive and sometimes difficult to qualify for. Life insurance that will pay for long-term-care costs, instead of a death benefit, is also available. Other options include buying an annuity that increases its benefits if long-term care is needed. Also, an irrevocable trust can sometimes be used to protect some assets so that they all won’t have to be spent down before a person applies for Medicaid.

“The bottom line is too many people avoid talking about long-term-care planning, but the more you prepare, the better off you will be,” Hayduchok says.

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2 Comments

Comments

rmlesan 8 years ago

Unfortunately, most of the media only ask those who sell LTC policies to advise on whether LTC insurance is a good idea or not. Guess what answer they usually get? A better place to start is by asking those who DO NOT make any money off the sales of LTC policies about how to think through this question. That's not to say insurance salespeople shouldn't be consulted, but all should understand that they cannot be considered objective on this subject. I tend to be negative on LTC insurance. The catastrophic scenario most insure against is far more remote than folks think it is, and in the highly unlikely event someone does face it, there will be other options (family, Medicaid, an as yet unavailable government run program, etc.) than hoping your insurance policy that you purchased 20-30 years prior will be paid on in the manner you understood it would. Also, LTC policies tend to cover far less than most folks think they do. Bottom line, people are paying far too much and getting far too little for something they could probably self-insure for in the first place. And no, I don't get paid to sell insurance of any kind.
RaymondL 8 years ago

Thank-you Karen with writing this article. Wealth advisors are part of the equation. There used to be the phrase -- team approach. Few people meant it but it was enjoyable to say because it made people feel you would help them with a variety of financial, legal, and tax issues. Holistic is another term that is a cliche. If an advisor has a firm where they are willing to know about underwriting and various products that are available -- then it is fine for them to explain and write plans for their clients. If not, refer to agents who have the competence and expertise to explain benefits which will allow for favorable outcomes if care if needed. The purpose of owning a plan is to allow for current and future cash flow to be used for lifestyle and commitments now and for the future. Where to begin: www.theconversationproject.org -- speak with your wealth, legal, and tax advisors. Ask them if they own a LTC plan. Ask them why they own it? If they do not own a plan ask them why? Have the conversation with your spouse or partner and family and friends. Let your family and friends know before you are not in good mental and physical health how and where you want your caregiving and plans for your exit strategy.

Advisors, LTC And ‘Malpractice’

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