May 07, 2024

Episode 125: The Importance of Incorporating Long-Term Care Into Financial Planning with Jason Rizkallah

45 minutes

In this conversation, Alex, Wade, and Jason discuss the importance of incorporating long-term care into financial planning. They share a real-life example of a client who unexpectedly needed long-term care earlier than anticipated and how having a long-term care policy helped preserve their assets. They also discuss the different types of long-term care insurance policies, such as hybrid policies, and the factors to consider when deciding whether to self-insure or purchase insurance. The conversation highlights the need to stress test financial plans for long-term care events and the value of care coordinator benefits in insurance policies. In this conversation, Jason Rizkallah discusses the process of obtaining long-term care insurance. He explains that the decision between insurance and self-insurance varies and is often influenced by factors such as cost, eligibility, and pre-existing conditions. Rizkallah also outlines the steps involved in signing up for a long-term care policy, including determining coverage amounts, obtaining quotes from providers, and going through the underwriting process. He emphasizes the importance of working with a knowledgeable long-term care specialist to navigate the complexities of the insurance market. The conversation concludes with a discussion on the need for early planning and the availability of options for long-term care coverage.

Takeaways

Incorporating long-term care into financial planning is crucial due to the high probability and cost of long-term care events.

Stress testing financial plans for long-term care events helps clients understand the potential impact on their financial situation.

Hybrid policies, which combine life insurance and long-term care coverage, can provide both a death benefit and long-term care benefits.

The cost of long-term care insurance should be compared to the potential out-of-pocket expenses to determine the value of the coverage.

Care coordinator benefits in insurance policies can be valuable for individuals who may have difficulty finding appropriate care on their own. The decision between long-term care insurance and self-insurance depends on factors such as cost, eligibility, and pre-existing conditions.

The process of obtaining long-term care insurance involves determining coverage amounts, obtaining quotes from providers, and going through the underwriting process.

Working with a knowledgeable long-term care specialist can help navigate the complexities of the insurance market and increase the chances of approval.

Early planning is crucial for long-term care, as the probability of needing care increases with age.

There are options available for long-term care coverage, including hybrid policies that offer flexibility and known benefits.

Chapters

00:00 Introduction and Guest Introduction

07:26 Benefits of Hybrid Policies

23:02 Factors to Consider in Long-Term Care Planning

32:16 Options for Long-Term Care Coverage

Links

We're hosting another YouTube LIVE Q&A episode for RWS! Attend live on the Retire With Style YouTube channel on 5/13 at 1:00 PM ET. Can't make it live? Click here to submit your questions: https://www.surveymonkey.com/r/7JMMPRM

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips

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By Wade Pfau & Alex Murguia

3.9

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