Wealth Management
/ Insurance
8
For Advisor Use Only
January/February
2014
The number-one retirement worry is “serious health
problems,” followed by “not being a burden on my
family.” The top financial worry is “health care expenses.”
These responses relate directly to the need to plan for
long-term care. Ironically, while your clients may not
want to discuss this topic, their health and the related
expenses are of great concern to them. Your belief in the
value of a long-term care plan can help your clients
understand the disconnect between their concerns and
their reluctance to plan for these arguably inevitable costs.
Whenever I speak with advisors who are unsure whether
LTCI is appropriate for a specific client, I ask, “What
would you recommend if this client were your mother or
father?” Could this client benefit from a long-term care
plan? What would be the consequences to the client’s
family and finances in the absence of a plan? Is this a risk
your client is willing to take?
Believing in the need to protect your clients’ families and
finances will lead to action.
Commit to Action
Meaningful action is the result of following belief
with commitment.
Commit to speak with every client over 50 years old one
time each year; then follow through with an appointment
dedicated to the long-term care discussion. If the client
doesn’t want to meet, don’t give up. Bring it up every year
until he or she is uninsurable or passes away. Sometimes,
clients who previously expressed a lack of interest suddenly
want to talk, usually because someone they know and love
has had a serious change in health.
Commit to sending communications to clients to let
them know that you can assist with these planning needs.
Commonwealth provides preapproved letters, e-mails,
brochures, and website content to help you promote your
insurance capabilities. You’ll find some of our offerings
on COMMunity Link
®
at My Practice > Marketing >
Marketing to Clients > Letters > Insurance.
Every day, I hear from advisors whose clients have
presented them with a long-term care proposal from
another agent or advisor. In some cases, a client has
recently purchased a policy elsewhere and wants the
advisor’s opinion on it. Your commitment to letting
clients know that you can assist them with long-term care
planning can help avoid these situations and keep assets
with your firm.
Master the Conversation
The long-term care conversation can be simple. Ask your
clients these questions, especially if they object to discussing
long-term care outright:
•
Do you expect to live a long life?
•
Is it reasonable to think that, if you live to 85 or
95, you may become ill or frail and need long-term
care services?
•
What is your plan for that care?
•
What will it cost?
•
How will you pay for it?
Sometimes, when an advisor brings up long-term care
planning, the client rejects the idea and the advisor accepts
the rejection. If you believe that this is a risky strategy,
don’t let the client off the hook. Instead, help him or her
understand the consequences of not having a plan.
You can demonstrate the effect of a short or lengthy health
event on clients’ retirement income with retirement
planning software such as MoneyGuidePro.
TM
The
Insurance team can provide data on the cost of care in your
area now and in the future. Or, you can take a conceptual
approach and ask your clients how they would feel if:
•
Their income is significantly diminished as they
grow older?
•
They have to spend thousands of dollars a month,
indefinitely, on uncovered health care expenses?
•
Plans to leave money to loved ones are altered by
events that might have been foreseen?
Commit to speak with every client over
50 years old one time a year; then follow
through with an appointment dedicated
to the long-term care discussion.
