“How to Use RMDs to a Client’s Advantage: Morningstar’s Benz,” by Jane Wollman Rusoff, ThinkAdvisor

“Who should buy long-term care insurance?

The long-term care question is the big risk factor in many retirees’ plans. People who don’t have long-term care insurance are courting a risk that they may incur big costs that could gobble up their portfolios.

But those policies are very expensive.

Yes, and premiums have been rising. So even people who thought they were doing the right thing in buying a policy have, in some cases, been socked with really large premium increases.

What’s the risk if people wait till they’re older to apply for that insurance?

They may not even qualify because the policies can be quite stringent about a pre-existing condition.”

LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):

I wondered if this interview about creative uses for Required Minimum Distributions would get around to covering LTCI and it did. A critical connection to make.

How to Use RMDs to a Client’s Advantage: Morningstar’s Benz

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