The Advisor's View of Long-Term Care Planning

Why I bought $101,000 of Critical Illness coverage on myself

Posted by Tom Riekse Jr | Dec 16, 2014 4:36:09 PM

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For those advisors who have sold LTC Insurance, they know the most likely purchasers are middle age females who have had personal experience with caregiving.  The least likely people to buy LTC and single men who have no concept of caregiving  and vow they will never be in a position where they will be dependent.

In addition, many people who can afford to self-insure for the cost of LTC buy insurance anyway.  Why? Because they understand the impact that a long-term care event will have on their family, and having an additional resource to help will be a huge help to the family.

Critical Illness is similar.  Although I have great health coverage that will cover heart attack, cancer, or stroke I realized buyng criticall illness coverage would give me and my family breathing room and the freedom to:

  1. Replace income from my working spouse who may have to take time our for caregiving
  2. Help my business partners who will allow me to have a leave of absence
  3. Allow me to pursue second medical opinions and experimental treatment outside of doctor networks

But what triggered the purchase was personal experience with a friend who's spouse had a stroke and needed to take time of work for care - it was a reminder of how quickly a bad day can change everything.

The premium I'm paying will give my family breathing room.  I also saw a recent 60 minutes episode abou the cost of cancer drugs http://www.cbsnews.com/news/the-cost-of-cancer-drugs/ and realized I wanted more control over care.

Why did I buy $101,000 of coverage as opposed to $100,000?  It's because the carrier I purchased through medically underwrites plans for premiums above $100,000.  I was able to use good health to get a significant discount off on a simplified underwritten plan.  Finally, the plan I bought has a loss of independent living benefit trigger that can supplementt LTC coverage.  

Want to learn more?  Get a sample quote on a client.

Topics: Critical Illness

Written by Tom Riekse Jr

Tom Riekse, Jr., ChFC, CLU, CEBS is the Managing Director of LTCI Partners. He has been working in the long-term care insurance business since 1991 with an emphasis on communicating the value of LTC planning to advisors, employers and consumers. He has primary responsibility for all marketing and technology initiatives at LTCI Partners, and has worked closely with carriers and vendors to make LTC Insurance easier to sell and enroll. Tom received his undergraduate degree in from Hope College, Holland Michigan. He subsequently achieved his MBA at the University of Illinois at Chicago, with a concentration in finance and marketing. He holds the Certified Employee Benefit Specialist designation from the International Foundation of Employee Benefit Plans and the Wharton School and his Chartered Financial Consultant from the American College.

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