Discussing long-term/extended care with your clients is never an easy process. The extended care discussion with your clients could be presented as more of an extension of their overall financial planning strategy.
Conversing With Clients About Family Dynamics
Several things can be gleaned from a conversation with clients about family dynamics. The client’s children may not live nearby, or they might be facing health issues themselves. More likely, they are busy building their careers or raising their own families.
This type of conversation also serves as a subtle reminder that your client’s families have their own lives. Even if your clients believe that family would be there to care for them, ask them how much of a burden they are willing to place on their loved ones. Gently remind them of the physical, emotional, financial, and mental stress involved in caring for someone else.
Consider asking the client the following questions:
- “Have you thought about how you would receive care if you became incapacitated or ill?”
- “Do you think your children would be able to care for you full-time while they are busy with their careers or raising a family?”
- “Would you want to choose who your caregivers are?”
- “Would you want to receive care at home?”
The answers to these questions should reveal your client’s priorities and help you and us focus on which type(s) solutions best fit their situation.
Earning a Planning Commitment from a Client Through Collaborative Conversations
The more you discuss the dynamics involved in extended care, the more it will serve to minimize financial objections your client may have over funding a solution. Help your clients understand that meeting unplanned extended care expenses on their own could very likely exceed the cost of anything they’ve ever paid for previously, including the purchase of their home.
Further, educate them on how disruptive it would be on all of the financial planning they’ve done. Share that their retirement plan and other financial assets would likely evaporate quickly if their plan is to self-fund their extended care. Reallocating a small portion of their income or assets towards a guaranteed protection solution can secure their financial futures and their ability to be cared for in the way they choose. Once you’ve earned a commitment, ask your client if they would rather fund their extended care planning solution before they retire, or over time.
Extended care solutions are no longer a one-size-fits-all approach. There is a vast array of solutions available to clients, depending on their medical history and the dynamics of their client profile. Partnering with First American Insurance Underwriters will let you be a hero to your clients by creating a custom solution for them.
— By Ed Stone, LTC, DI & Annuity Specialist