Quoting Bill Comfort, “A POLICY IS NOT A PLAN!”
A policy is a means for funding a future obligation. That is the purpose for an insurance policy is to help people mitigate financial loss as a result of a certain event occurring. It is a risk management tool. That is all – it is a tool.
Whether that policy pays benefits in cash or on a reimbursement basis; sits on a traditional chassis or asset-based chassis; or addresses the full financial risk or a small portion of that risk does not take away from the intended purpose for using an insurance solution.
Arguments have been made that cash is better than reimbursement because the client (in reality the client’s family or whomever manages their affairs) has control of the benefits. A counter argument has been made that cash may not be ideal as it introduces more work and responsibility.
Then there is the age-old battle about the superiority of traditional long-term care policies or asset-based products like Asset Care. I’m not dredging up the debate again as I believe that it is ridiculous and the debate diminishes our stature as advisors.
Hell, we can’t even agree that we have a planning problem in America!
Then, we argue whether a policy should be designed to cover the full cost of the care or cost-share with the insured is more relevant than either of the debate items.
We need to get back in the planning business and drop the debate about which product or claims payment method is superior. When we do our job, the right product will emerge from all of the options that exist.
We need to do our jobs and engage with our clients. Ask the questions that make us all uncomfortable – “what is your plan when an extended care event occurs?” Once we determine where they are at, we can then work to improve their situation.
The debate over cash or reimbursement doesn’t matter if the opportunity to introduce an insurance solution never occurs.
To my point from the opening of this. I believe that there is a product for most situations AND I believe that one carrier cannot be everything to everyone. I also believe that it is our responsibility consider all of the solutions that are suitable for a client and present the solution that most directly aligns with the clients’ wants, needs, and financial situation.
So let’s start planning – OBJECTIVELY.
Learn more about OneAmerica, Asset Care, Annuity Care, or how we can help your clients plan for long-term care by contacting my internal Kelley Hilliard directly at (844) 623-4251 or via email at kelleyhilliard.isp@oneamerica.com
Fridays with Fisher 