LTC planning is a specialized field. Financial professionals cannot be experts in all areas. If you are not qualified in this area, seek the guidance of or a joint relationship with a LTC specialist or begin the education process to expand your area of specialty. Women understand getting from point A to point B is different for everyone because starting points and destinations are not the same. They will know if you hand the same map to all your clients. There is a navigation process to follow:
- The first step in planning is to determine if transferring the financial risk is the right thing for your client. This assessment should also include your client's ability to afford the premiums now and in the future as well as their ability to physically and cognitively qualify for LTCI.
- Understand and be able to give oversight regarding the three LTC contracts available: Reimbursement, Indemnity and Cash. Knowing the difference and knowing your client's preferred destination will allow you to recommend which contract is most suitable.
- Understand the importance of carrier selection. Looking diligently at the carriers' overall strength as well as their position in the LTC market is critical.
- Women want to be a part of the "shopping and planning" process. Advise them of the components of LTCI and why their choices make a difference. Benefit period, benefit amount, elimination period, and cost of living riders are the primary components, but usually all carriers offer other features that will enhance their coverage. Often one's budget plays an important role in the depth of plan design.
If money is no object –like life insurance — we would all have the most coverage possible. But there is a rhyme and reason for plan designs with longer benefit periods and less benefit amount versus a shorter duration and higher benefit amount. Again, your client's starting point and preferred destination will help determine which is appropriate for them. A positive "mapping experience" with a professional navigator (advisor) will ensure a loyal and satisfied client as well as a completed plan. The plan brings the peace of mind for the future journey to be traveled with fewer bumps in the road.
