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What your advisor doesn’t know could cost you
I marvel at financial advisors who give advice based not upon knowledge but upon their own foolish assumptions. Case in point…
Guy in his early 60’s married a younger woman some time ago. I met with the couple not long ago to talk about long term care planning. When he discussed our conversation with his financial advisor, his quick response was, “Oh, your wife doesn’t need it! She’s way too young.” It was clear the advisor had very little experience with this kind of insurance. He was not aware that his advice would cost his client an additional 40% because of the spousal discount available when a couple is approved at the same time. Neither did the advisor know that a delay in putting the younger spouse’s coverage in place could potentially cost an additional preferred health discount of 10% that comes off her portion of the premium. Worse yet, delay could invite a change in health condition that could render her uninsurable altogether. (I just got back from my doctor’s office myself. The news was not good. I can tell you what a difference a day makes. But I digress.)
The bottom line is that the husband can take advantage of his wife’s age and excellent health when considering an appropriate coverage for the family. The cost of a total package for two may be less than for just the husband alone. Or, they may choose a more robust plan for them both because of the savings in premium they can have. Interesting observation: the more a financial advisor learns about long term care planning and this special kind of insurance, the more likely he is to refer his client to a specialist. An educated advisor knows how complex the issues can be. And having a detailed conversation about a clients’ private health history can be territory that a financial advisor doesn’t want to wonder into. So they may choose to avoid it altogether. So, to all financial advisors, I urge you to educate yourselves, and accept the advice and assistance from specialists in long term care planning. Your clients deserve nothing less.
