LTC Insurance: Do I Really Need to Provide Financial Information?
I’m 64 years old and in the process of purchasing a long-term care (LTC) insurance policy from One America, which comes with a $120,000 upfront premium and a “return of premium” feature. I’m currently working with a financial advisor who is asking for all my personal financial documents, living wills, and more.
I’m beginning to feel like I’m being drawn into a complicated situation where they’re acting as financial advisors for a fee, when my only goal is to buy the policy. I was under the impression that all I needed to provide were my medical records.
Can anyone clarify whether this demand for my financial information is standard practice when making an upfront payment for LTC insurance? Am I being taken advantage of? Any insights would be appreciated.
It sounds like you’re navigating a complex situation with your long-term care (LTC) insurance purchase, and it’s understandable to feel uncertain about the need for personal financial information.
LTC Insurance Basics: When purchasing LTC insurance, particularly one with a significant premium like the one you’ve mentioned, insurers often require a comprehensive assessment of your financial situation to ensure that the policy is suitable for you. This can help them evaluate your ability to pay the premium and understand your overall financial needs.
Role of Financial Advisors: It’s not uncommon for insurance companies or financial advisors to request personal financial information to provide a holistic view of your financial health, especially if they’re in charge of managing your portfolio. However, you should feel comfortable with their request and understand why they need this information.
Return of Premium Policies: A “return of premium” option can be an attractive feature, but it may also have specific requirements and implications. Make sure you fully understand how this feature works and whether it applies to your unique circumstances.
Your Rights: You have the right to ask questions about why certain information is needed and whether it’s mandatory for the policy purchase. If you feel the financial advisor is acting beyond the scope of the insurance purchase, consider discussing your concerns directly with them or seeking a second opinion.
Informed Decision: Before proceeding, ensure that you are fully informed and comfortable with what’s being requested. If you feel uneasy, consider consulting an independent insurance agent or a different financial advisor who specializes in LTC insurance.
Ultimately, it’s important to feel confident and secure in your decision-making process regarding your LTC policy and the advice you receive. Trust your instincts, and if something feels off, don’t hesitate to seek additional guidance.