He was glad he had recommended LTC insurance to the Alzheimer's couple, years earlier, when they were still healthy enough to qualify. When he reminded the woman that she and her husband had coverage, he was "able to calm her down and explain that everything will be OK," said Barzideh. "Just knowing that those costs would be covered gave her a big sense of relief at a very difficult time."
Other types of insurance can make sense as well. "Make sure clients have long-term and short-term disability insurance," said Moraif. "A bad car accident or other life event can change their situation in a heartbeat, [and] a long illness or disability can deplete all financial resources."
Besides insurance, Barzideh suggested keeping "emergency money in savings accounts, to cover the unexpected expenses that may arise." To that end, he said, advisors may need to coach their clients in budgeting principles. "There should be a plan to save and invest for health-care costs," he posited, noting that the average couple will spend some $230,000 for health expenses alone during the retirement years. "Clients need to be made aware of that, and those expenses should be factored into the plan."
Advisors should also connect clients with legal specialists such as an estate planning attorney, if they don't already have one. "There should be the necessary estate planning documents in place," said Barzideh, citing "a will, a trust and papers for incapacity, which outline who can make medical and financial decisions on [the client's] behalf" if and when the client isn't able to.
Indeed, it can take a team to shepherd clients through a health-related crisis. Moraif had a client who could not afford necessary post-surgery medication. Against doctors' recommendations, the client chose to skip the surgery for fear of leaving loved ones destitute. That didn't seem safe or wise, so Moraif marshaled a multi-prong effort.
In the end, the client and his family, said Moraif, "received counsel on how to bargain with the drug companies to obtain the medicine at a more reasonable price, which they could afford."
The surgery proceeded just fine.