Often wealthy clients argue that they don't need long-term care insurance because they can afford to self-insure. Kevin Slusarz, LTCI Partners sales consultant, explains what motivates high-net worth clients to purchase LTCi.
Why should my high-net worth clients buy long-term care insurance? I get this question almost every day. If you are thinking about selling long-term care to high-net worth clients, there are ways to prepare yourself for the long-term care conversation.
While your clients may be able to provide for themselves financially in the event of a long-term care incident, they may not have someone to manage, monitor and adjust a plan of care with their physicians and caregivers. In the event of a long-term care need, the insurance contract provides access to a team of advocates who can assist in designing, developing, and managing the plan of care. This can be one of the most valuable selling points for high-net worth clients because they want to ensure they receive the best care while not laying the burden on their family.
Keep in mind that long-term care is not an asset protection tool for high-net worth clients but rather a means to the best care that is available. Long-term care insurance provides access to independent health care professionals who will come to your home, assess the patient, negotiate provider discounts and coordinate the best plan of care for your client.
A popular LTC funding option for high-net worth clients is self-insuring the risk. While they may have the ability to self-insure, they may lack liquidity. That lack of liquidity may force your clients to sell assets at a highly discounted rate as well as face a substantial tax liability. It is impossible to predict a long-term care event and having long-term care insurance will give them peace of mind by keeping their estate intact while receiving the best care possible.
The bottom line is that many high-net worth individuals understand the concept of risk management. In addition, many are in the position they are in because of a fiscally conservative lifestyle. The purchase of a long-term care insurance policy allows them to practice what they have been taught to do throughout their lives: minimize risk, work with experts and avoid selling assets below their value.
