First off, they feel very badly about a loved one that is shut in and can’t have visitors. Unlike the Italian side of my family, other family members might not live close by, can’t go to offer assistance and in many cases have moved away. Boomers are seeing this happen. I, for one, take calls from my 91 year old mother who is in lockdown in a facility. The good news is, my mother is being taken care of. She also has enough money to get her through her life expectancy. But, in most cases, that is not the situation. Family members will either have to kick in financially or hope that they can get a bed in a nursing home facility. So, what should the financial professional do today?
It's time to have a conversation with your clients about the potential of a chronic illness that might have them in future need of financial help. Analyze their cash resources, and see how long it will last. Sure, if they don’t have a product that offers long term care like benefits, they can ask all their kids to kick in a few bucks. They won’t like that. Yes, they can investigate a reverse mortgage. That, in many cases, is a great option. Or, they can purchase a long term care policy. Or a hybrid… an asset based policy like an annuity with long term care type benefits, or a life policy with those benefits. Where can they find the cash for such protection? They might just have cash in a money market account or even an annuity that could be exchanged for an annuity with accelerated benefits… or a life policy that can do the same thing.
Now, I am not advocating a wholesale replacement of your book of business. I am advocating a conversation with your clients. It is what we should do and it is the right thing to do. The COVID-19 situation has brought this topic to the top of the table. Get on the phone or set up a virtual presentation with your clients. It is perfect for a review. Need help? Give us a call. We have the tools and products.