Why you should only purchase Long Term Care Insurance through a Long Term Care Insurance Specialist.

Important things in life require specialists who have the knowledge, experience and expertise that the non-specialist does not possess. Consider the following:

• Neurosurgeons specialize in Brain Surgery
• Oncologists specialize in the treatment of cancer
• Domestic Relations or Family Law Attorneys specialize in Divorce matters
• Real estate Attorneys specialize in real estate transactions
• Estate Planning Attorneys specialize in wills, trusts and the orderly disposition of assets
• Elder Law Attorneys specialize in unique issues affecting the elderly
• Investment Advisors and Financial Planners specialize in investment management and general financial planning advice
• Long Term Care Insurance specialists, specialize in designing insurance plans that protect people’s income, assets, independence and dignity.

How to know if you are dealing with a Long Term Care Insurance Specialist

1. They will have either the LTCP (Long Term Care Professional) or CLTC (Certified in Long Term Care) professional designation. However, that alone does not make them a long term care insurance specialist. Additionally, they should have the following practical experience as well.

2. Have at least 100 long term care policies in force on existing clients – Historical context is extremely important. You want someone who knows where the long term care insurance market has been, where it is currently, and the direction it is going based on the leading indicators. You certainly would not want an Investment Advisor whose only experience was in a bull market where everything was going up, or conversely only in bear markets where tremendous losses had occurred. Either one would skew their perspective and objectivity and as a result their recommendations.

3. Can provide testimonials or recommendations from satisfied long term care clients.

4. Have had at least 5 clients on a long term care claim collecting benefits.

5. Have sold policies with 6 or more different companies to demonstrate objectivity and a broad knowledge of the market.

6. Have sold both traditional and hybrid long term care policies.

7. Have placed business with at least 3 different Hybrid companies – to insure that they are not beholding to one specific company vs. being objective.

8. Can explain the advantages and disadvantages of both traditional and Hybrid policies.

9. Can explain the Partnership program for Long Term Care.

10. Can explain Tax Qualified plans vs. Non Tax qualified plans.

11. Can explain what Medicare covers regarding long term care.

12. Can explain Medicaid and what it takes to qualify.

Summary

One of the common mistakes people make when it comes to the subject of Long Term Care Insurance is seeking advice from their Financial Planner/Advisor or their Life insurance agent. If that person has never brought the subject up to you before, or has not presented a compelling enough case to cause you to put a plan in place, then they are probably not the person you need to be talking to about long term care protection. On the other hand, if your Financial Planner/Advisor tells you that you don’t need it because you have enough money, the following is recommended: 1. Get a second opinion from a true long term care insurance specialist. 2. Ask your current advisor why they would recommend that you carry homeowners insurance, or a liability umbrella policy when the risks covered by these policies have a minuscule chance of occurring compared to Long Term Care which has a 70% chance of occurring? 3. Ask them why Suze Orman, Terry Savage, Dave Ramsey, Charles Schwab and other nationally renowned financial experts are such proponents of this type of protection? Again, if they tell you that you have enough money to self-insure the long term care risk, ask them why is it that you have enough money to self- insure this risk, which is extremely likely to occur, but not enough money to self-insure your other risks which are much less likely to occur?

Seeking advice from your Financial Planner/Advisor or insurance agent about long term care insurance is comparable to getting an opinion from your primary care physician about cancer treatment. They might have some limited knowledge on the subject but certainly will not possess the level of knowledge and expertise that a specialist has. The best Financial Planners/Advisors and Insurance Agents understand this and will proactively refer you to a long term care insurance specialist.

This issue is important because the results of decisions made now may not become apparent until 15-20 years in the future when this issue will be front and center in your life. At that point in time, your life will be greatly influenced by the decisions that you are making now. Wisdom would dictate using specialists in all important decisions, and long term care planning is certainly no exception.