When meeting with clients, many competent financial planners include four words in their discussion that might cause many people to cringe. Initially, clients hear the four words and assume the insurance product the words describe is not for them. This conclusion is often founded on historical perceptions that might not be completely accurate.
There are many benefits associated with the purchase of the insurance product described by the four words. Some benefits are underwritten by an insurance company and other benefits are ancillary to the product. In my opinion, the most important reason to purchase the product is because of the options available to you, the insured. Yes, there is an insurance product that can provide options because of the resources available to the insured under the terms of the contract.
The four dreaded words that many ignore until it is too late are "long-term care insurance."
For most people, thinking about the reasons for needing this product are not pleasant. The reasons may be disheartening, but if and when the risks become reality, most people would prefer to have options to manage their health care.
Typically, the benefits available with this product include home care, assisted-living services and nursing-home care. Home care and assisted-living care may be more valuable to you than nursing-home care. Hence, home care and assisted care are two of the valuable options available with the purchase of the product.
When you review product choices with your financial planner, the financial adviser should discuss the New York State Partnership program as one product offering. The program is not state-run. The product is underwritten by insurance companies, and the contract is between the insured and the insurance company. New York state developed the program along with some state-admitted insurance companies, and the product might be an excellent choice for many New Yorkers.
As distasteful as the circumstances underlying the four words may be, I encourage each of you to spend some time with your financial adviser to review the benefits associated with long-term care insurance.