LTC Insurance: Do I Really Need to Share Financial Details?
I’m 64 years old and in the process of purchasing a long-term care insurance policy with a $120k premium for One America, which includes a “return of premium” feature. However, my financial advisor is requesting a lot of my personal financial information, including living wills, etc.
I’m starting to feel like I’m caught up in something unnecessary. All I want is to buy the policy, and I thought that would only require my medical records.
Can someone please clarify if I really need to provide this personal financial information for an upfront payment? Am I being taken advantage of? Thank you for your help!
It’s understandable to feel unsure when navigating complex financial products like long-term care (LTC) insurance, especially when it involves large sums of money and personal data. Here are a few points to consider:
Purpose of Financial Information: Financial advisors often request personal financial information to assess your overall financial health and ensure that the insurance policy you’re considering aligns with your long-term goals and needs. They may want to ensure you can handle the premium payments comfortably and that the policy fits into your overall financial plan.
Necessity of Personal Data: While the purchase of an LTC insurance policy typically requires medical records, additional financial information may be necessary depending on the advisor’s practices. However, you should only provide information that seems relevant to the purchase. If providing this data makes you uncomfortable, you can ask for clarification on why it’s needed.
Return of Premium: Since you’re considering a policy with a “return of premium” feature, it’s important to understand how this works. Make sure the advisor explains the terms, conditions, and what might happen if you decide to cancel the policy later.
Trust Your Instincts: If you feel uneasy or suspect that the advisor is not acting in your best interest, don’t hesitate to seek a second opinion. Look for an independent insurance broker who can provide unbiased information and help you compare options.
Research and Compare: Before committing to any policy, it’s wise to compare different LTC insurance options and understand the benefits, costs, and coverage provided. Online resources and consumer advocacy groups can also be helpful.
Ultimately, you have the right to feel confident and comfortable with your decisions regarding insurance and your financial future. Don’t hesitate to ask for clarity or seek advice from trusted friends or family members as you navigate this process.