Advisor Today - November/December 2015 - (Page 25)
By Doug Jolley
Starting the LTCI Conversation
A good first step is to make your client feel empowered instead of uncomfortable.
our clients trust you to help
them with their retirement.
Are you failing that trust in an
area that could potentially have the
greatest impact on their retirement?
Clients primarily have two
concerns: not having enough money
to continue their lifestyle when they
retire, and outliving their money. A
part of addressing these concerns is
getting them to talk about the need to
plan for their long-term care (LTC).
And that is a difficult task. They don't
want to talk about the uncomfortable
subject of needing help with things
like continence, bathing and dressing.
As a result, many agents give
up because it is so difficult. This
results in agents leaving their clients
vulnerable and exposed to one of
the greatest threats to a successful
retirement plan-no plan to deal
with their long-term-care needs.
This problem is summed up
simply by Deb Newman, a leading
LTC expert: "There are not enough
conversations going on about longterm care."
Starting the conversation
So how do you successfully address
the subject and provide meaningful
solutions? One way is to make your
client feel empowered instead of
uncomfortable while dealing with
the issue. Newman suggests shifting
the conversation by using the word
"permission." She says some advisors
frequently tell their clients that they
can self-insure because they have lots
of money. But when care is needed,
she adds, their spouses or kids are
reluctant to use cash to spend on
care, and the family starts providing
care. But caregiving usually takes a
toll on the family.
So your conversation with your
client should go something like this:
"By having LTCI, you are giving your
family permission today, while you're
still healthy, to hire someone to care
for you if and when the time comes
cases if they have some form of
Also, let your clients know that
some coverage is better than none.
According to surveys, many clients
have a "comfort point"-frequently
between $100 and $200 a month-
that they are willing to spend on
LTCI. While the coverage that amount
buys may not cover all their costs, it
may keep them from being a burden
on their families or being forced out
of their own home for care.
Another area of
empowerment I try to give
my clients is the ability to
stay in control of their care.
when you need care, so they don't have
to be your constant caregivers. You
can tell them, "I give you permission.
It's why I purchased LTCI."
Telling a story is also helpful. In
our family, I discussed LTC with
both sets of parents. My father and
stepmother purchased an LTCI
policy from me, while my fatherin-law declined. At the time of his
death, my father-in-law was paying
$6,000 a month for home care for
him and his wife. My wife and I then
decided to care for her mother in our
home, which ended up being the last
six years of her life. Mom suffered
from Alzheimer's, and could not
walk, talk or feed herself. It was an
act of love, but it took a toll on my
wife, the primary caregiver.
Shortly after my mother-inlaw passed away, my mother also
needed care, and she had not been
eligible for LTCI. Due to her greater
medical needs, we were not able
to care for her in our home; so, my
mother miserably spent her last four
years in a nursing home.
What we experienced with my
mother reinforced another area of
empowerment that I always try to
give my clients-the ability to stay
in control of their care, preferably
in their own home if at all possible.
And that is only possible in most
Agents have a number of protection
options these days to present to their
clients, including life and annuity
products that offer coverage, in
addition to traditional LTCI policies.
Aaron Eisenach, another LTC
expert, says, "We have more product
types than ever before, allowing us to
help people of any income and asset
levels and health status." However,
he believes that there is still a clear
winner in providing that coverage:
"Stand-alone LTC policies still
provide the most bang-for-the-buck,
compared to other solutions. A client
could pay a few months' or years'
worth of premiums, suffer a change
in health, and hundreds of thousands
of dollars are available for care needs.
LTC insurance also provides the most
attractive inflation protection, shared
benefits between couples, asset
protection in most states through the
Partnership program, and the widest
range of options to structure a small,
medium or large policy."
Start having this important
conversation with your clients today
and help them address a key area of
Doug Jolley is the founder of Southern
Health and Retirement Planning in South
Carolina, with offices in Columbia,
Charleston, Myrtle Beach and Hilton
Head. He can be reached at 803-318-3684,
or via email at email@example.com.
November/December 2015 | ADVISOR TODAY 25
Table of Contents for the Digital Edition of Advisor Today - November/December 2015
From the Editor
In Step with a Winner
Finding Success in the Chinese-American Market
Dealing with Client Confidentiality
Hashtag Your Way to Social Media Relevance
Starting the LTCI Conversation
From Term to Perm
Protecting the Downside with Allocation Adjustment
Jules Gaudreau: A NAIFA Success Story
NAIFA Takes NOLA
Helping Clients Cope with Market Volatility
NAIFA Government Relations
Working with Single Women
Financial Planning FAQs of Small-Business Owners
Three Retirement Conversations to Have with Clients Today
The Advent of Robo-Advisors
Moving into the Retirement Space with 401(k) and 403(b) Plans
Moving the Sales Process Forward
Cultivating the African American Market
The Lighter Side of LIfe
Advisor Today - November/December 2015