Pseudo Journalism Schlock, the Sequel

As I promised in my prior blog, Pseudo Journalism Schlock, Part 1, here are a few corrections to Clark Howards error-riddled piece masquerading as journalism. You will find the following comments, and more, posted at the bottom of Mr. Howard’s piece. The very best commenter is last.

Jesse Slome Executive Director American Association for Long-Term Care Insurance comments:

“Some good info some outdated info (including companies that no longer offer this product). May I suggest starting with 4 consumer guides that are a quick read and offer current facts and suggestions on ways to make this most affordable. You can find them at http://www.aaltci.org/long-term-care-insurance-costs and NO sign-in info is required to access them.  Today, because of the many changes, it really pays to work with a long term care insurance specialist. That is someone who has helped 100 (or more) people get this protection.”

From Phillip Sullivan President – SellingLTC.com www.sellingltc.com:

“An insurance company’s financial rating does not guarantee there will never be a premium increase. Premium increases are caused by product pricing and current interest rates (which have been historically low for some time). Case in point, State Farm (Rated A++) increased its rates in 2012 on their LTCi policies sold from 1997-2001 in 15 states, (including Georgia with a 12% average increase) and other states increased as high as 40%. You further recommend using an independent broker who can shop the market. This is good advice, except independent brokers cannot sell State Farm, USAA, Northwestern Mutual or New York Life.”

From D.O Long Term Care Specialist. PO Box 1654 Snellville Ga 30078:

“As stated by Mr. Slome, some good info while some outdated info also. States Farm does not work with independent brokers and the plans they tend to recommend do not include the compounded inflation protection options which is highly recommended for younger folks as well as required for the Georgia Partnership Program. In addition, I disagree with the idea of not buying ltc if you are rich. Rich folks do not self insure their homes or health insurance. Why would anyone want to self insurance a potential risk that can result in financial ruins. They are various options from traditional ltc policies to hybrids plans. Best time to look into ltc is while you are in good health. The younger the better for obvious reasons.”

And here’s my very favorite comment, from “Signed, A concerned life and securities professional”:

“Hey Clark, if you want to provide your opinion, then state that it is an OPINION. You are not licensed by the State of Georgia as an insurance agent, nor are you federally licensed to provide financial advice on stocks, mutual funds, and any other investment platform. Stop providing ADVICE of every kind, as although I am sure you have good intentions, you ARE NOT LICENSED TO PROVIDE ADVICE, and many of your readers/listeners will accept your words as gospel. Your comment where you say “you should not buy LTC insurance if you are very wealthy or don’t have a lot of assets” is not necessarily wrong, however it is not wholeheartedly accurate. Blanket statements are unacceptable in our profession, and only by an individual/family working with a duly licensed professional can proper and case specific information and advice be provided. I am licensed in many states as a life agent AND as a securities professional. MY opinion is that by providing incomplete information, you are causing more harm than good. Even if ONE PERSON makes a poor decision based on your incomplete information, you are doing a disservice to my profession. As I work for a national firm with a large compliance department, I cannot sign my name because I did not get preapproval to write this note. This is because many large firms want to make sure that all written communication with clients meets both the firm’s and various regulatory requirements. Even if I had preapproval, I could not write an article such as yours, because it was incomplete and somewhat misleading.”