Investment News: “Long-term care: An uncomfortable but necessary conversation”
Investement News, November 9, 2023 — Insurance can be expensive, and clients should be aware of all options and how to use coverage when the time comes, explains Marguerita Cheng in today’s article by Emile Hallez.
The problem isn’t just that they don’t want to think about it — it’s that more than half of people don’t think about it at all, even while conceding the topic’s importance. And while nearly half of people say they have plans to pay for long-term care through insurance policies, less than a quarter of them actually have such coverage, according to data this week from Transamerica’s Extended Care Report.
It can be hard enough for people to think about retirement on its own — but throw in the concepts of mortality and dependent care, and it’s a topic that they will actively put out of mind. Add in the cost of care or even long-term care insurance, and the subject becomes both scary and expensive.
Financial advisors say they tend to broach the subject with clients as early as their 40s, a time when some already have experience caring for parents.
Advisor Marguerita Cheng’s dad was diagnosed with Parkinson’s disease before she gave birth to her third child, and the topic of long-term care is important and personal to her.
She asks clients where they would like to be cared for, by whom and how to pay for it, which allows the subject to be addressed with sensitivity, Cheng, CEO of Blue Ocean Global Wealth, said in an email. “I think before rushing into recommending a product solution,” she said. “I encourage clients to think about creating a plan for long-term care.”