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I was reminded the other day why working with an experienced agent is so important for people who are looking into insurance, especially long term care insurance. I remember a couple of years ago when I replaced my hail damaged roof. My agent made sure my coverage was for replacement value. It saved my bundles of cash when it was time to file a claim. The most recent reminder of the importance of working with an experienced agent was when I was in the home of a client. He said was looking at a LTC group plan his company was offering. He showed me the informational brochure the personnel office had given him. That was as much help as they could offer. It outlined the various options including daily benefits and inflation protection, along with an imposing matrix of ages, and monthly premium costs. Looking at it from his point of view, it looked like a bewildering array of numbers that could discourage even the most determined soul.

I looked at the details of the plan and saw that coverage was available for a limited amount of home care and, and only three levels of benefits were offered. In my conversation with the husband, I asked a routine question; “When you retire, do you think you will stay in this area?” No, California was their destination. What does that have to do with anything? Well, they just doubled of cost of their care if they needed long term care in the future. The top level of benefits offered in the company would never come close. They would be spending a bundle of cash to make up the difference.

Next question: Is staying in your own home for as long as possible important to you? “Oh, yes.” With limited coverage for home health services, the group plan offered by the company was clearly oriented to facility care and not what they were looking for. “Let’s back up and start over,” I said. And we did.

With a little figuring we were able to put a plan together that met their needs. But, what if they went ahead with a plan that focused on their employer’s offering? They would have thought that their need for long term care coverage was in place and all was well with the world. There could have been some big surprises in store for them and their family further down the road. It comes right down to this: “Pay me now, or pay someone else MUCH MORE later.” I truly believe I helped this client family avoid a costly mistake. That is what makes my work so rewarding to me, and a huge value to my clients.