My 91 y/o auntie has paid LTC insurance premium of Approximately 200/mo for last 10 years or so. She broke her hip recently and my cousin informs me that it turns out her LTC reembursement will only be about $50/mo for a limit of about 2 years. Folks need to read the fine print carefully. It looks to me as if investing premimium in Foolish Four would return better on investment.
Welcome to the real world. There are many posts on this board from people selling LTC. They all paint a rosey picture. To really give the true picture, they should give statistics on how many people collect benefits, the average benefit paid and the amount of premiums paid to collect those benefits. They should also disclose how much they are getting paid to sell this insurance.
NYMOM:In #2319, you said, "They should also disclose how much they are getting paid..."NYMOM, If you are dealing with a Certified Financial Planner (CFP) licensee or practitioner; you will be notified in detail about compensation. It is the way that business is conducted. I wish you the best.--WauseonFox--
WauseonFox,... you will be notified ... I think you missed the point.Or ...Have you actually seen someone disclose their fee structure in advance of posting on this board?I didn't think so.Phooley
CFP is an advanced salesman, he just has a little more training and more referrals, if he is worth his salt have him show you his own checkbook and balance sheet as well as his house budget. Ask to see his investments and how well their doing. Don't be so caught up in how much people make or else you will lose sight of how much you need to make. What is the big deal everyone works for a living, comission or otherwise, if they are any good they will do right by you. If you need to see how much they are making then you do not need their service you need someone in the MFCC,Phd field. Just think when you were employed or maybe still are, if every company you dealt with wanted to know how much your making as a determining factor you would be dead broke as well as you would never want to disclose to someone how much you make. Go on a recommendation from someone who has invested wisely and made the right plans that is really all you need to know. A CFP is just another type of salesman who is licensed to sell more than one type of financial vehicle.
It has nothing to do with fine print it has everything to do with taking out a sensible plan and not going cheap on everything. People will pay a hundred dollars or more for a handbag that they only keep 20 dollars in. Does that make sense. There is no fine print in a LTC policy, a good advisor in this field will tell you that, it is in the mind of a client who thinks this will never happen but I will get a little something just in case and co-pay the difference. Please, if you would like I will be more than happy to review her policy.ThanksJim
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