Here’s an example of pundits getting long-term care insurance (LTCi) very, very wrong. Wrong to the point that it is harmful to the public because it dissuades people from considering LTCi by using false information.
The author turned to “one sharp advisor” who is unfortunately not well educated in LTCi and as a result, advised self-insuring. This is bad advice. Too many advisors fail to understand that the primary benefit of LTCi is rapid, worry- and stress-free access to long-term care without hesitation and without fear of threatening the health, financial, or emotional status of their loved ones. “One sharp advisor” and the author do not mention these benefits. All they are concerned about is wealth preservation, which is a secondary consideration.
The author, Richard Eisenberg, also picked an LTCi agent named Irv, to make LTCi recommendations. Here’s what Irv did wrong. He said, “…my wife and I would need to spend an hour with him on the phone so he could ask us some questions.” Health questions should never take more than a few minutes…period. They should never be the conversational focus point. Irv went on to say that “…if I chose to wait five more years to buy the policy he recommended from Mutual of Omaha, I’d be rejected. That company won’t sell long-term care coverage to someone who has had diabetes for 20 years.” This is a false, manipulative, scare tactic. Irv is an embarrassment to my profession.
Mr. Eisenberg wrote eloquently about why it is very important for him to own LTCi. I feel sorry for Mr. Eisenberg because of the poor advice that he received from both parties. He is a very smart guy, evidently very in touch with his feelings and the realities of what long-term care entails. I fear that doubt about his decision to abort his search for reasonably priced long-term care insurance will grow through the years and will haunt him during retirement.
The last way to find a good LTCi agent is through direct mail, as Mr. Eisenberg did. Try your friends, colleagues, and the internet first. Visit agent websites before you call. This is how ALL my clients find me.
Wade Pfau, a noted financial advisor with more credentials than “one sharp advisor”, gets LTCi right. Smart financial advisors do.
What a pity. Many people are harmed by published falsehoods about LTCi.