Search Results for: cognitive decline

Potential Concerns and Risks for Traditional LTCi

January 29, 2016 by Honey 2 Comments

Forbes contributor Wade Pfau is doing the world great good with his series of articles about the urgent need for long-term care (LTC) planning.

What I like so much about Mr. Pfau is his credibility. He is a highly qualified financial planner and academic at The American College.

Financial advisors are generally fee-based, not commission-based, like I am. Because he does not make commission from his advice, some may consider him to be more credible than agents who sell long-term care insurance (LTCi).

In his January 19, 2016 Forbes column titled, “Potential Concerns and Risks of Traditional LTCi” Mr. Pfau describes the history of long-term care insurance and the mistakes made with this product in the past.

Since he is not an LTCi specialist, I can’t fault him too much for not quite “getting the whole story” on what causes and caused past LTCi rate hikes.

An example is this “bait and switch” accusation, which is wrong: “Buying based on who offers the cheapest price is risky, since the company may be seeking upfront sales with the intention of increasing premiums later.” It’s more complicated than this. Carriers are not interested in making lots of sales now and suffering unhappy clients, bad public relations, and reduced sales later. This has never been their strategy.

With an average LTCi buying age of 57 and an average claim age 25 or more years later, plus ever changing mortality rates and demographics, no prior experience to go on, and required reserves earning unusually low interest rates for longer than anyone could have imagined, how could the earliest LTCi carriers realize that their assumptions would be so far off that significant rate increases could not be avoided?

Mr. Pfau does correctly state that today’s LTCi products are expected to have very stable rates.

He also correctly describes the public’s resistance to buying LTCi. He gives some good reasons but fails to point out the #1 reason people don’t buy LTCi: DENIAL! To be fair, however, he has mentioned denial in his prior columns.

Mr. Pfau does mention people sometimes lapse their LTCi shortly before they need to use it, due to cognitive decline. This doesn’t happen often, but I have seen and dealt with it, and it is highly upsetting. It is also highly avoidable. By and large, LTCi policies have very low lapse rates. The study Mr. Pfau refers to giving high lapse rates has been refuted.

It is up to policyholders to plan for the high odds of mental incapacity by appointing and empowering, not arguing with, trusted individuals to act on their behalf. I have learned that one of the earliest and most subtle indicators of mild cognitive impairment is making bad business decisions. Such bad decisions often go unnoticed, again, due to denial by the policyholder and family members.

Today’s LTCi policies, thankfully, have stronger protection against unintentional lapses.

I still love Wade Pfau and greatly appreciate his very clear writing and ability to make complicated concepts understandable. His articles are very factual, with very few flaws.

There’s No Planning Without Communication

July 22, 2019 by Honey Leveen Leave a Comment

Communication is one of the most important factors in any significant relationship, right? And yet it is usually absent or at least faulty when it comes to sharing important information about health and finances. Sometimes the parents hide information from their children or the kids keep details from their parents. Or spouses feel the need to protect one another from the truth of their declining health.

In a recent issue of the newsletter published by the Society of Actuaries, I read an article written by my friend and colleague, Eileen Tell. Tell is an academic and a researcher. Her article is based on findings from research she conducted for the Office of the Assistant Secretary of Planning and Evaluation (ASPE), part of the U.S. Department of Health and Human Services.

In the article, Tell summarizes observations from consumer focus groups conducted as part of that study, intended to better understand a family’s search process for long term care services. The findings of the study support the same experiences I observe among my own clients.

“A common theme heard in all the groups was the lack of awareness of the decline in either physical or cognitive health of their loved one until this acute episode occurred.” By shielding family members from important facts, most are caught by surprise when there is a sudden decline in their health.

In many cases, it takes a major event to trigger family involvement. A fall, sudden illness, a stroke, or the unexpected need for a new primary caregiver. Family members find themselves unprepared to manage the important decisions that require immediate answers.

Communication Has To Happen

George Bernard Shaw wrote, “The single biggest problem in communication is the illusion that it has taken place.” You may wish that it happened. You may even think you were clear. But until all parties have the details and understand the situation, there’s no way you can properly prepare.

The study groups reveal the same patterns I see with my clients:

A lack of awareness of the decline in their loved one, until an acute episode occurred.
Aging parents typically shield their adult children from the realities of their limitations.
Where mom or dad ultimately winds up receiving care is very much a function of finances.

Sometimes, family members begin to address the sensitive subject of long term care, only to be met with silence, half-answers or a complete change of subject. Especially when it came to talking about paying for that care.

This type of denial is so widespread, that I’ve written many dozens of blogs about it.

I will never understand why people elect to re-act, rather than pro-act. I’ve seen many people who could have afforded long term care insurance (LTCi), but they refused to consider it. As if the very conversation was more taboo than their actual future without plans. LTCi can help cover a lot of future costs. Some often include care coordinators, too.

For my clients, LTCi is often transformative, a game-changer. This makes my career career hugely satisfying.

It’s rare to find families who are composed, level-headed and functional when long term care is needed. One thing should be obvious, though. When someone buys LTCi, they are stacking the deck in their favor that their future will unfold in a more dignified, graceful, considerate and affordable lifestyle.

Click here to receive your free, no-obligation quote for your customized long term care policy.

Preparing for Financial Scams

June 12, 2019 by Honey Leveen Leave a Comment

In 2018, the Federal Trade Commission received almost 3 million reports of financial scams, which is an increase from the previous year. A study by New York State estimates that for every instance of financial exploitation reported, as many as 44 scamming cases go undetected.

Another study has calculated that older people lose over $36 billion each year from financial exploitation.

A Couple of Surprises About Financial Scams

It’s common knowledge that the elderly are easy targets of financial scams. What you may not know is that younger people (aged 20 – 29) actually report losing money more often than older people (aged 70 – 79). And it’s a significant difference! Younger people make up about 43% of these reports vs. only 15% from older people.

The difference is that once they fall prey to these operations, the elderly suffer considerably higher losses, since they have accumulated more wealth than younger generations.

There is a lot of scientific evidence that shows how vulnerable we become to these scams as we age. Most people believe that this is a symptom of cognitive impairment. But this isn’t always the case. It may also be part of isolation, loneliness, and other symptoms of physical decline. No two cases are alike.

While thoughtful estate planning and having a living will are very important, they will not necessarily protect someone from becoming an unwilling victim of financial scams.

To avoid being scammed or falling victim to fraud, difficult conversations must occur.

Here’s a wonderful video about how to talk with loved ones about the possibility of financial fraud.

In an earlier blog, I discussed a series from NPR’s Marketplace called “Brains and Losses“. I’m sharing the link to the podcast again because the information was so useful.

It’s not easy preparing for difficult circumstances that might lie ahead for us or for those we love. That’s why I am so deeply committed to my role as a Long Term Care Insurance Specialist. Together, we can create a plan that will make future decisions easier for you. Click here to receive your free, no-obligation quote so we can get started.

“Brains and Losses” – Financial Scams on Seniors

May 28, 2019 by Honey Leveen Leave a Comment

NPR’s Marketplace has done a thoughtful, engaging investigative series on age-associated financial vulnerability, called “Brains and Losses”. You can click here to listen to the 5-part audio series (Don’t worry — each episode is only about 5 minutes long!). It’s an interesting look at new research involving why we are more prone to financial scams as we age.

Even back in 2015, a well-respected and often-cited study found that Americans lose over $36 billion each year to “elder financial abuse”. The study breaks down those losses in 3 major areas:

$17 billion from exploitation – Seniors are led to making poor decisions based on confusing language or high sales pressure.
$12.8 billion from fraud – Seniors fall prey to identity theft or cons to send strangers money.
$6.7 billion from abuse of trust – Seniors who rely on the guidance of close friends, family or other advisors are deceived by the relationship and bilked out of their money.

It seems obvious that as age-related cognitive abilities decline, seniors become an easier target. In fact, I’ve written about this before. One of the early signs of oncoming cognitive impairment is falling for financial scams.

I’ve Seen This Too Often

I’ve observed the warning signs with my own clients and prospective clients. They ask the same questions again and again. They don’t seem to be absorbing the answers I give to their questions. Sometimes they drop their long-term care insurance (LTCi) policies. In a panic, they – or their kids – later call me, wanting to reinstate the policy. This is not a change of heart, but recognizing that a poor decision was made. And it is heartbreaking to me.

As I began listening to the 5-part audio series, I anticipated I’d be hearing more of these kind of stories. Boy, was I wrong. The series examines and explains so much more!

It turns out that you don’t have to be cognitively impaired to fall victim to these scams. There are a host of other factors that also sets someone up for these traps. Financial vulnerability may also be associated with loneliness, isolation, and impaired physical health.

Have the Conversation

I’ve shared the importance of having the difficult conversations with parents about care in their later years. Talking about financial management is a big part of this.

Here are 4 suggested questions that can get the ball rolling:

As you get older, what are your spending priorities?
Do you know what a scam is? What would you do when a stranger calls you, asking for money?
Who do you trust to help you with your finances? How often do you want to talk to them?
If you start to start to get a little shaky around these decisions, what do you want us to do for you?

The bottom line: be proactive. Protect yourself, protect your family, by having explicit conversations, now!

A great way to protect the future financial and medical options for you or someone you love is through long-term care insurance (LTCi). To receive your own free, customized no-obligation quote, click here. Let’s start this conversation!

Late in Life Decisions Are Often Impaired

June 6, 2016 by Honey Leave a Comment

Sumner Redstone, center, at a 2012 charity event with, from left, Manuela Herzer and Sydney Holland, both ex-lovers who have figured in a battle over his care. Credit Brian to/WireImage

In what may be an “extreme example of the high stakes and chaos that can result, the Redstone pattern is happening in epidemic proportions,” reports a June 2 New York Times (NYT) article.

This article dovetails beautifully with my recent blog on the evidence proving why loss of cognitive speed, verve, and financial literacy is a normal part of aging.

Feuds between 93 year-year-old billionaire Sumner Redstone and his former mistress, estranged daughter, and former heir apparent have been graphically, publicly aired for the past few months.

The NYT article goes on to state that familial feuds like Mr. Redstone’s are becoming more prevalent due to Alzheimer’s and longer lifespans. The elderly are especially susceptible.

The article states that similar situations can often be averted by proper legal planning, with more explicit trust language. In addition, everyone should have and share extremely explicit personal, financial and medical directives, and of course, own long-term care insurance (LTCi).

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Search Results for: cognitive decline

Potential Concerns and Risks for Traditional LTCi

Late in Life Decisions Are Often Impaired

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