As someone who has been in the insurance business since 1981, I've seen many shifts in how we approach chronic illness and long-term care insurance (LTCI). Terry Savage’s article, "Funding Long-Term Care Insurance," recently published in the Chicago Tribune, offers a timely discussion on this crucial subject. I highly recommend following the link and reading her article. Having spent decades assisting independent brokers through Smart Money Financial, I can attest to the importance of finding innovative and practical solutions for advanced insurance needs, particularly when it comes to chronic illness.
Emphasis on Early Planning
Savage rightly highlights the importance of planning for long-term care well in advance. This proactive approach cannot be overstated. In my experience, clients who engage in early planning are far better positioned to secure favorable terms and ensure their future needs are met without undue financial strain. Early planning allows for a broader range of options and more competitive pricing, which aligns with our philosophy at Smart Money Financial of providing proven long-term solutions.
Financial Strategies and Product Options
Savage discusses a specific financial strategy and product option available for funding LTCI. Beyond that we recommend exploring multiple options, including traditional LTCI policies, hybrid life insurance policies with LTC riders, and annuities. This multi-faceted approach resonates with my commitment to an unbiased, multi-company strategy. It's essential to evaluate all available products to tailor solutions that best fit each client's unique circumstances.
Hybrid policies that Savage discussed, in particular, offer a compelling option by combining life insurance benefits with long-term care coverage. This dual-purpose approach can be highly beneficial for clients who may be hesitant to invest in standalone LTCI due to concerns about paying for something they might never use. By offering both life insurance and LTC benefits, hybrid policies provide a sense of security and value, aligning with the advanced plan design principles we uphold at Smart Money Financial.
Addressing Impaired Risk Underwriting
One aspect of the article that merits further discussion is the treatment of impaired risk underwriting. Clients with pre-existing health conditions often face challenges in securing LTCI. At Smart Money Financial, we've developed expertise in impaired risk underwriting to help these clients find viable solutions. By leveraging advanced underwriting techniques and maintaining strong relationships with multiple insurers, we can often secure coverage for clients who might otherwise be deemed uninsurable.
The Role of Advisors
Savage underscores the critical role that financial advisors play in guiding clients through the complex landscape of LTCI. As a Brokerage General Agent, I cannot agree more. Advisors are the linchpin in helping clients navigate their options and make informed decisions. Our role is to provide advisors with the tools, knowledge, and support they need to deliver effective insurance solutions. This includes continuous education on evolving products and underwriting guidelines, ensuring that our network of brokers is always at the forefront of industry developments.
Conclusion
Terry Savage’s article serves as a valuable reminder of the importance of long-term care insurance and the need for thoughtful financial planning. It echoes many of the principles that have guided my career in the insurance industry: early planning, a multi-company approach, and a focus on innovative solutions for advanced insurance needs. As the landscape of LTCI continues to evolve, it is incumbent upon us as industry professionals to stay informed and provide our clients with the best possible options for their long-term care needs.
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