Personally, I’ve seen two family members require long-term care, and those care events were emotionally, physically and financially draining for everyone involved. Planning ahead could have made a world of difference.
Professionally, I’ve seen an advisor’s relationship with his clients negatively impacted when he avoided discussing LTC. Again, a little planning could have made a world of difference …
A Missed Opportunity
About two years ago, I received a call from an advisor whom I’d been trying to connect with for months. He apologized for not returning my calls and emails, and he said he needed my help, which made my day.
The advisor, who focused primarily on investments, explained that recently, one of his top clients came into the office and laid down two linked benefit policies – one for him and one for his wife. The client said he was at the bank when the bank’s advisor pitched the policies to cover their future potential LTC expenses, in return protecting the rest of their assets. This made sense to the client and his wife, so they moved forward, using excess cash they had sitting at the bank.
The client brought the policies back to the investment advisor to see how they would fit into the couple’s existing retirement plans. The client said, “We purchased these from the bank advisor because we know you don’t deal on the insurance side.”
Not only was the investment advisor upset because he lost business, but he also felt he let his clients down by not helping them prepare for potential LTC expenses. He also told me these same clients starting moving their money away … to the bank advisor. He said, “I need to be brought up to speed about LTC planning and available solutions before this happens again.”
Moral of the story: If you aren’t having LTC discussions with your clients, someone else will.
Your Chance at Redemption
The concept of a three-legged stool is used a lot in our industry. We usually position three needs and point out that any two will have a hard time standing without the third.
This is a simple way to position LTC planning with clients. You may have done a great job of planning their retirement income and wealth transfer plans … But what happens if their health becomes compromised? Their income and estate plans could be ruined. Tell your clients, “This is why I would like to discuss a plan that addresses potential long-term care expenses.”
By positioning an LTC plan as protection for your clients’ assets and income, you’re showing them you care about protect everything they have worked so hard to accumulate over their working years. You’re showing them how to support all three legs of their stool.
Your LTC team at Ash Brokerage is here to help you in any way we can. We understand you’re busy with many other aspects of the financial planning process, and LTC planning may not be your main focus. Let us help you streamline the process and grow your business along the way.
When you’re proactively discussing LTC planning with clients, you’re a step ahead of your competition. Want to get started? Check out last month’s post on opportunities within your existing book of business [LINK] or give us a call.
About the Author
Mickey Belt has been in the insurance industry for about four years and has been able to assist many advisors with incorporating LTC planning in their practices. He views LTC planning as a value-added service that advisors can provide to their clients to protect their assets. Mickey is currently working his way through the Financial Services Certified Professional® designation through The American College.