November 13, 2017

Sometimes, we all get caught up.

Caught up in product knowledge, rates, brochures, declinable drugs, and everything else… to the point where we don’t see insurance for what it really is.

Insurance has the ability to take a horrible situation and make it manageable. And long-term care – it’s practically the poster child for this notion.

Today, I want to take a step back from all the logistics of insurance and show you the real-life impact of a client who’s very dear to me.

Twelve years ago, I was speaking with a woman’s son, Mike. He knew about long-term care, and he knew that it was a real possibility for his mother.

But here was the catch – she didn’t have many assets.

If she didn’t have much to protect, why did she need long-term care insurance? She could just go on Medicaid, right?

Here was the second problem: Mike lived in Minnesota, and his mom lived in Illinois. If the mother had gone on Medicaid, she wouldn’t be able to go to a nursing home in Minnesota.

In short, she wouldn’t be close to family. No one would be there to visit her.

And you definitely don’t get the best care when Medicaid is footing the bill.

So, here were my 3 main points for getting Mike and his mother on board:

  1. Even if you don’t have many assets, you don’t want to lose everything you have – you want to be able to hold on to what’s yours. More than that, you want to pass on what you do have to your boys.
  2. If you end up needing long-term care, you want to be in a desirable place. There’s a huge difference in quality, and here’s the bottom line: you want to be in the best place, and you don’t want money to be the issue.
  3. If you’re living in a long-term care facility, you want the option to be close to family. If your Plan A is Medicaid, you won’t have that option.

Here’s what happened.

When all was said and done, the son ended up paying most of the premium for his mother, and the big sticking point here was that he wanted her to have the best care.

He didn’t want money to be the deciding factor between a great quality of life and the bare minimum.

As time went on, like most long-term policies, rate increases came. The son started questioning if the policy was really needed, and I reminded him that if he can afford to keep it, he should keep it.

Shortly after, the mother started showing signs of dementia. She was leaving the stove on and getting lost in her neighborhood.

The mother was able to be close to her family, and she was able to choose the best care available.

I’d like to share a note I received from Mike this year.

It reads:

Dear Jeff,

I want to thank you again for steering me to the long term care policy we bought for my mom. The policy has almost reached its max payout of about $180,000. Things would sure be a lot different if we didn’t have the policy in place. Mom is happy, safe, and well cared for. Thanks again for your friendship and the sound financial advice you provided.


LTC Letter

It’s moments like these where I’m reminded of how important our job is. We have the power to protect people from terrible financial destruction.

I’m touched by this experience, and I hope you’ll take a moment to remember how important you are. You’re valuable to us, and we know you’re making a difference in your community.

Related Posts