One of the major risks with LTCI that should be discussed with a client considering purchasing such a policy is what will happen if late in life the insurer denies the claim when the client is physically and mentally least able to deal with the denial?
Posted by M. Smith
Wednesday, May 10 2017 at 2:59 PM
I am happy to see FP help advisors discuss long term care insurance with clients.
But what should really be asked is "What do you want your LTCI to do for you? Do you want it to cover almost all of your expenses for put a nice dent in the bill with the shortfall coming from available income and investments?"
We often have clients buy a LTCI policy without inflation. It is not uncommon for a couple to buy a $9,000 per month benefit w/o inflation. Its cheaper than $6,000 with 3% simple.
