While I was returning home from my vacation, I was doing a Google search on “why should I buy LTC insurance”. The first website that came up was a landing page for a LTC specialist with an interesting approach.
First was a statement of what we value. Let me parapharase:
- We love our family
- We believe that we do not want to be a burden on family and friends
- We want to fulfill our commitments and plans now and in the future
- And, you are financially successful and have sufficient resources to pay for your lifestyle in retirement.
Here is a point that I think is often overlooked for one reason or another. Maybe it is ego, maybe it is not believing the power of insurance, maybe it is ignorance. Regardless, here is the point that I think is worthy of consideration.
There is no “safe return on investment” available … that can return what an insurance company and the tax code can provide to you.
Reinforcing that statement is a little challenge (which I love):
Call your wealth advisor and ask them to:
- Waive their management fee,
- Guarantee a return on your investments of (pick the amount) every month with no risk to your money
- And, make that money not impact your taxes or other benefits.
It is highly unlikely that they can execute this request. Of course, someone with significant assets (several million) might be able to accomplish this, but that is a rarity.
Why do I share this?
Simply – thinking that you can self-fund is risky. You only win if a long term care event either does not occur or it is short in duration. And, given the market challenges that we are facing today, is that strategy where an investment strategy that outperforms an insurance policy a reality (even for a moderate duration event)?
Consider these points, look into your block of business, and ask yourself which clients lifestyle, relationships, and finances would be irreparably impacted by a long term care event.
After that – grab your phone and contact your BGA, IMO, GA, or your OneAmerica Care Solutions wholesaling team to discuss possible solutions.
Thanks for making time for me.
Please contact us with your next long term care case. I can be reached via email at kevin.fisher@oneamerica.com or you can call me at (678) 512-9627. You can also speak with my internal Justin Fox by calling him at (844) 658-3725.
Fridays with Fisher 