LTC Insurance: Do I Need to Share Financial and Will Documents?
I’m 64 years old and in the process of purchasing long-term care (LTC) insurance with a $120k upfront premium for a “return of premium” policy from One America. I’m currently working with a financial advisor who is asking for extensive personal financial information, living wills, and more.
I can’t shake the feeling that I’m getting drawn into something unnecessary—like the advisor is trying to play a role for a fee when all I really want is to secure my policy, which I thought only required my medical records.
Can anyone help clarify this? Is it standard to have to share such personal financial details when making an upfront payment for LTC insurance?
It sounds like you’re feeling uncertain about the requirements your financial advisor is asking for in relation to your Long-Term Care (LTC) insurance purchase. Here are a few points to consider:
Purpose of Financial Information: Financial advisors often request personal financial information to provide a holistic view of your financial situation. This can help them ensure that the LTC insurance policy aligns with your overall financial goals and retirement plans. However, if you’re only interested in the policy itself, this information might not be necessary.
Medical Records: Typically, LTC insurance applications do require medical underwriting, which means they will assess your health status through your medical records. This is standard and necessary to determine your eligibility and premium rates.
Return of Premium Clause: The “return of premium” feature is beneficial, as it allows you to recoup some of your premiums if you don’t end up using the insurance. It’s important to understand all the terms associated with this option.
Assessing Your Advisor’s Role: It’s reasonable to question whether your financial advisor is focusing on your immediate needs or pushing additional services or products that may not be necessary for your goals. If you feel uncomfortable, consider discussing your concerns directly with them or seeking a second opinion from another advisor.
Transparency is Key: If you feel like something isn’t right or you’re being pressured into something you don’t want, don’t hesitate to ask direct questions about why certain information is needed. A reputable advisor should be transparent about their motivations and how the information will be used.
Consider Alternatives: If you’re primarily focused on obtaining the LTC policy, you could explore working directly with the insurance agent or company for a more straightforward approach without the additional financial planning services.
Ultimately, it’s important to feel comfortable with your decisions and the professionals you work with. Don’t hesitate to advocate for your needs and clarify anything that feels unclear.