Flexible Alternatives to Long-Term Care Insurance

Chris DiGregorio is a well established member of the financial advisors of Janney Montgomery Scott, LLC team who provides clients with experienced pre- and post-retirement planning services. In his work with Janney Montgomery Scott, Chris DiGregorio emphasizes the importance or properly balancing portfolios between equity, insurance, and other diversified holdings. 

With the expenses associated with long-term care an extreme burden to many, those about to retire are often concerned that an extended stay in the hospital will quickly deplete retirement savings and income. Unfortunately, long-term care insurance (LTCI) can be expensive, particularly considering that it will, with luck, never be used. 

One solution is to purchase a ”combination" policy that includes both permanent life insurance and LTCI. As required, the pool of money associated with such coverage can be used to pay monthly health care expenses. In cases where the money is not used during the principal’s lifetime, it provides the designated beneficiary with a death benefit. 

Another alternative to expensive long-term care policies is to take an existing life insurance policy and add an acceleration rider. This allows the death benefit to be tapped for long-term care expenses should they arise. Keep in mind that optional benefit riders involve an additional fee, as well as another layer of conditions, limitations, and contractual terms, and will not be suitable for every investor.

Four Types of Financial Beliefs

Janney Mongomery Scott senior vice president of investments Chris DiGregorio has worked in the financial services field for almost two decades. Chris DiGregorio’s work at Janney includes helping people plan for their financial future, a practical, emotional issue that should include some consideration of beliefs around money and communication with older and younger generations. 

A study in the Journal of Financial Therapy found many people have basic beliefs about money that can prevent them from making the best decisions for their financial future.

Some people exhibit money avoidance, where they believe money is fundamentally bad or unethical, and may sabotage their ability to become financially stable. Others are money worshippers, who obsess about money at the cost of things in life such as health and relationships. A third group believes money equates to status, which can make them overspend in an attempt to appear wealthier than they are. A fourth group is overly vigilant about money: Their financial behaviors are sound, but they can have so much anxiety around it that they do not enjoy their lives as much as they could. 

When considering financial planning and making big decisions about money, it’s helpful to consider which of these beliefs may be influencing financial choices. These beliefs often come from family, so it’s important to talk to parents and others in the family about their financial beliefs and patterns.