In this episode of Financial Planning for Canadian Business Owners, Jason Pereira, award-winning financial planner, university lecturer, and writer, interviews Jen Jacobs, an expert in long-term care insurance, about why long-term care insurance is important for business owners in particular.
Episode Highlights:
- 1:04 - Jen Jacobs introduces herself and her profession in long-term care.
- 3:54 - What triggers a long-term care event?
- 6:24 - Jenn compares long-term care to the other living benefits insurances (critical illness, disability).
- 8:04 - Jason and Jen break down the impact of net worth into the need for different kinds of insurance.
- 8:58 - Why is long-term care so drastically undersold?
- 12:36 - How does the cost differ for long-term care for those at different stages of life?
- 15:32 - Jason and Jen dive into the growing scenarios where people need to be looked after for long periods of time.
- 16:33 - Jason tells the story of the first modern-government pension in Germany.
- 18:43 - Is Jen’s viewpoint that people aren’t looking at living-benefit insurance early enough?
- 23:46 - Jason breaks down the factors that have caused people to buy long-term care from him.
- 26:00 - Jason and Jen give the takeaway message from all of this.
3 Key Points
- Long-term care insurance is only sold by a tiny portion of insurance agents in Canada, making it the most undersold type of insurance in the country.
- Canada has a fixation on fixed-premium insurance, compared to most other countries that have more variable-premium insurance.
- In today’s world, people live for so much time after their retirement compared to 100 years ago.
Tweetable Quotes:
- “I always thought it was the neatest idea that you could spend a little bit to be protected.” - Jen Jacobs
- “Activities of daily living is your ability to get on on your own...When somebody needs help with 2 activities, the claim is triggered.” - Jen Jacobs
- “Many advisors haven’t brought it into their business and if they don’t mention it, nobody’s going to know about it.” - Jen Jacobs
- “More often than not, this is thought about as a later-career stage type of coverage.” - Jason Pereira
- “No one wants to insure a house on fire.” - Jason Pereira
Resources Mentioned:
Transcript
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