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Long-Term Care Insurance – Part 1

Hi and welcome to this edition of The Insurance Experts. It’s really my pleasure to have on the line Kerry Peabody. Kerry and I know each other because we’re both on the board of advisors for the CLTC organization one of the premier training organizations but I’m so pleasure to have him on the line today because he has a client story to share with us but first of all Kerry why don’t you tell us a little bit of your background.

How did you get into the long-term care business? Sure. First thanks Marc for having me on. How did I get into long-term care? Utterly accidentally. I was in the Air Force, got out of the Air Force, stumbled into the long-term care industry. I was a medical underwriter for a while. I was a National Sales Director for UNUM and for the last 16 years I’ve been in sales. I’ve built most of my business on referrals.

I work primarily with fee-only planners who do comprehensive financial planning for their clients but they don’t sell insurance so they need a resource for that and that’s how I market to them I’m a resource for you and attorneys. Okay very good and I know you were telling me about a financial planner you were recently working with. Why don’t you tell us a little bit about this planner? Sure. Again he’s a CFP financial planner he’s grown his firm from one person to about five people over the last ten years. He works with fairly affluent clients and this client we’re going to be talking about today that he sent to me was a surgeon who’s on the verge of retiring.

And so why is he such a big proponent of adding long term care to the financial plan? Because he’s an intelligent human being. He understands. It’s the risk. You know he works with people who can self-insure I suppose or self-pay but he understands the importance of using insurance for leverage. Okay so let’s talk about this client. Why don’t you tell us a little bit more about the client that you worked with with this financial planner? Very successful surgeon he’s been doing this for 30 plus years he’s owned a couple of different practices on his own and he’s been a hospital employee for a big part of that time.

He’s 62 his wife was 57 or 58 I believe and he was getting pretty close to packing it in and the planner brought up the topic of long-term care insurance. And what do you think that the surgeons reaction was when he heard about long-term care planning? Was he a proponent of it or did he not really get it? Well these guys have gotten you know over four million dollars in assets I’m talking about investable assets not total assets so frankly he didn’t think it was necessary.

He could just pay. I see. And so what was that conversation like with him about why you thought he needed a plan? Well a couple of things I mean first as you know people tend to react to talk of long-term care as only talking about nursing homes. I’m never going to nursing home. Well you buy long-term care insurance for two reasons: One to keep you out of the nursing home as long as humanly possible and two to protect the assets for the healthy spouse.