Last week’s Fridays with Fisher talked about some serious misunderstandings that a bulk of the population has about long term care / extended healthcare and the funding of those obligations. It is a serious issue that MUST be addressed. Medicare and Medicaid are not designed to address this issue – we need to make sure that this message is heard loud and clear.
But, that is last week’s discussion, this is a different week and new discussion.
Let’s assume that your client has acknowledged the potential impact of an extended healthcare / long term care event. And, remember, that healthcare issue is more than physical – it is financial and impacts their family and friends. This is why we do what we do at OneAmerica (and in the long term care insurance sector as a whole) – our mission is to provide financial solutions to help our insureds and their families that minimize the disruption.
Way back when I was first in the insurance industry – I was introduced to disability income insurance (DI). True disability income insurance where if the person was unable to perform their job, their income loss was offset by the insurance policy. Back then, I was doing a lot of endorsed DI and group plans for professionals then wrapping individual DI plans around it providing a blanket of coverage. My market could be characterized as high earners (doctors, dentists, accountants, and attorneys) where income issues were often significant.
Argument that some made were: “I can self-insure” and “If I never use the policy, I’ve wasted money on premiums”.
At first, I was a bit timid when those points were made but as I became more comfortable with the conversation, I became unafraid to respond with the follow questions:
“Where is “safe” place to park that money that you’d have spent on premiums that will be able to generate income for you for 2 years or more?”
“How long will your money last if you cannot work for a 2 years, 5 years, or never are able to return?”
“What if you are wrong and have a long duration incident, can you financially absorb that hit?”
Think about this for a minute – these are similar objections that we hear every day (often from “experts”) when we suggest an extended healthcare / long term care insurance policy.
“The more things change, the more they stay the same.” – Jean-Baptiste Alphonse Karr
While the product is different, the risks and arguments to forego a funded (or insured) plan remain. Think about what is similar between long term disability income insurance and long term care insurance – they both provide income protection in the event that the insured’s health is impaired significantly enough to become both a physical and fiscal problem.
Said another way, they offer protection of your client’s wealth from your client’s health.
So, consider this, when you are working with your clients who are transitioning from the workforce and the accumulation mode into retirement and the income mode, the time is ripe for the conversation about continuing their income protection plan. Transitioning their income protection from DI to LTC.
Just a little something to think about …
Remember, every Tuesday at 7pm, I offer a 22 minute virtual consumer seminar where I discuss some of the impacts that LTC can present. To get a feel for what it is all about and sample a few minutes of the content, go to the Virtual Consumer Seminar page on LTC Coffee Break website at ltccoffeebreak.com/virtual-consumer-seminar. Please help spread the word with your friends and colleagues about LTC Coffee Break as well as Fridays with Fisher.
Of course, you can contact me for to answer questions, address concerns, and schedule virtual or in-person meetings at email@example.com or via phone at (678) 512-9627.
For illustration assistance and product questions, please contact Justin Fox at (844) 658-3725 or firstname.lastname@example.org.