Maybe she has more than 80k, plenty of people withhold assets especially in a phone call, I would venture to say more people lie or grossly devalue their net worth than tell the truth in the beginning stages.
Shaking my Head Today
- Thread starter ltcadviser
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Maybe she has more than 80k, plenty of people withhold assets especially in a phone call, I would venture to say more people lie or grossly devalue their net worth than tell the truth in the beginning stages.
- Thread starter
- #32
Was not the case.
I really appreciate you sharing your experience, Jack. It was déjà vu to an orphan client I got to know few years ago.
The wife really really wanted a LTC policy when we first met. I went through their finance throughly. What was different from the lady you spoke to was their home was paid off, and in Sf priced in the high 6 figures. They also had 80k of liquid cash, living on abated small SSI plus some side income, but comfortably to their standard. Their two sons were out of college but not quite able to settle on their career. Her intent was to not leave any burden to the kids and leave the house to them.
So we had this dilemma. If she needed care, she would spend down, went on Medi-cal and the state would come back with a lien on the house when the couple died. If she did get a policy, she may afford a small one but could run into trouble if something else happen financially.
At the end, I explained to her I could not offer it at that time.
In retrospect, i was 2nd year in the business and thought more about rules, guidelines, and hard numbers - in a way stubborn in my analysis and not think enough was what was important to the client - not leaving burden and passing the house to the kids who were living there.
I wondered if I should be more flexible and wrote the policy. Your thoughts?
Fast forward to a month ago, kids' financial situation got better and intended to pay for the policy. I met with them and wrote the case. We discovered that she had a host of health issues while we wrote the app. She got declined obviously. In this case, it would not matter, but what if she actually would qualify health wise when we first met? Would I do a disservice to the client when I refused to offer initially? Please share your thoughts.
Thanks.
The wife really really wanted a LTC policy when we first met. I went through their finance throughly. What was different from the lady you spoke to was their home was paid off, and in Sf priced in the high 6 figures. They also had 80k of liquid cash, living on abated small SSI plus some side income, but comfortably to their standard. Their two sons were out of college but not quite able to settle on their career. Her intent was to not leave any burden to the kids and leave the house to them.
So we had this dilemma. If she needed care, she would spend down, went on Medi-cal and the state would come back with a lien on the house when the couple died. If she did get a policy, she may afford a small one but could run into trouble if something else happen financially.
At the end, I explained to her I could not offer it at that time.
In retrospect, i was 2nd year in the business and thought more about rules, guidelines, and hard numbers - in a way stubborn in my analysis and not think enough was what was important to the client - not leaving burden and passing the house to the kids who were living there.
I wondered if I should be more flexible and wrote the policy. Your thoughts?
Fast forward to a month ago, kids' financial situation got better and intended to pay for the policy. I met with them and wrote the case. We discovered that she had a host of health issues while we wrote the app. She got declined obviously. In this case, it would not matter, but what if she actually would qualify health wise when we first met? Would I do a disservice to the client when I refused to offer initially? Please share your thoughts.
Thanks.
- Thread starter
- #34
Well, high six figure house alters the analysis from an asset protection viewpoint. For me, the client must have some assets to protect otherwise it is a medicaid case and/or a lapseamatic.
Bringing children in to discuss payments is best solution.
If assets or help from family members does not exist just walk away. If they want a policy, some agent will undoubtedly write it so there is no need to feel bad about running your practice as you see fit.
Heck, there are individuals that contact me that have income and assets and I might refuse to work with them, as well, if they are not a fit personality wise.
If you don't mind sharing - what would you think of having the client adopt some gifting strategy on the house that keeps her in it and then writing an LTC policy that the client intends to keep only until the 5 years look-back period has passed?
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