The Conversation I Don’t Want to Have

My Comments: There are probably other conversations I don’t want to have but this is the one on todays agenda. It involves the problems all of us face as we grow older. The alternative to growing older is you have already died, which in itself is not a happy thought.

A colleague in California penned this. It’s more likely to happen that many of you are willing to accept. But as a financial planner, I know it happens fairly often. My hope is you can avoid it. Call or email me for more info.

What will you say when your good client calls and says:

“Hey John, this is Roger. Helen had a stroke a few weeks ago and it looks like she is not going to rebound as we had hoped. She is home now but needs a lot of care and that’s just not what I do well. I have hired a caregiver but it looks like it’s going to cost about $4,000 per month. Do we have insurance for that?”

“No, Roger. Remember, we agreed you could afford to pay for it yourself?”

“Hmmm, I don’t remember that; but if you say so…. The problem is the doctors say she is going to get progressively less capable and I’ll probably have to have someone here at least 16 hours a day. That’s going to bump the cost up to over $8000 per month. I don’t want to put her in a nursing home. Are you sure we can’t find some insurance for her?”

“Unfortunately, not. We’ll just have to start liquidating your portfolio. Hopefully it will be enough to last longer than she does.”

Had Advisor John worked with Westland to reposition a portion of Roger’s portfolio several years earlier while Helen’s health was still good, his response could have been more like….

“Oh, I’m so sorry to hear that, Roger. But yes, we do have a plan in place. Remember we moved those two CDs into the insurance contract several years ago? So we can begin by submitting a claim and collect as much as $6,200 per month. By the way, if you need some help coordinating her care, the insurance company will provide that for free. One call and we can take care of everything.”

We have been hearing of a lot positive stories as advisors tell us of the claims they are making on the MoneyGuard and TLC policies they placed in their clients’ portfolios a few years back.

How long will it take you to turn $150,000 into $329,000 guaranteed and tax free? That’s a 5.4% (6 -7% tax equivalent) rate of return over 15 years. I just placed this life insurance policy on a 73 year old man who truly believes he will avoid ever needing long-term care; but he heard about these life insurance policies that he could leave for his daughter or use for his own care if it turns out he is wrong.

Now we have several different linked-benefit products to fit a variety of circumstances from Single Premium plans to multiple deposits to lifetime “investments”….all of which will create an impressive return to your client whether or not long-term care is actually needed some day.

You should never have to tell your client there is no plan to help pay for their long-term care.

All this came from a trusted colleague in San Diego, Mr. Gene Pastula. Thanks, Gene.

One thought on “The Conversation I Don’t Want to Have

  1. The scenario is sad, but unfortunately it does happen in real world. I agree to what you have said: “You should never have to tell your client there is no plan to help pay for their long-term care.” I believe their will always a way. They just have to seek the right person and company, that will help them get the policy they can afford and will fit their needs.

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