Lifewizewomen Case Studies Outline
I – Who is involved? Wife, who is also larger income earner in household (3 to 1).
Age, family situation, homeowner? 38 years old, upper management at a community bank. Health status? Smoker, recently diagnosed with emphysema after two serious trips to the emergency room to reverse a collapsed lung.
Any other background info that is relevant. Wife has been trying to quit smoking for years, to no avail. Upon trying to up her life coverage and establish LTCi coverage, the emphysema diagnosis resulted in a “denial of coverage” for LTCi and Life Insurance. Essentially, going forward, she is “uninsurable” and no longer able to get any more insurance coverage, except through group policies at work. Now, whether she gets additional coverage depends solely on her employer’s benefits package and whether it includes the insurance she needs, and then, she can only get coverage at the limits set by the group insurance provider.
II – Were they insured? When at a lower income level, she was able to get some life insurance ($1 million), but felt she was woefully underinsured (by about $2 million), and also, had no LTC insurance.
If not, why not? She never got around to getting more life insurance, or getting started with a LTCi policy prior to being approached by her advisor.
If so, was it the right amount? Right type of insurance?
III – Could they have planned better? Yes, she could have stopped smoking. Being that she didn’t, she could have been more conscious of her insurance needs and simply applied for more coverage as she climbed the corporate ladder, and before her diagnosis. One thing they did, knowing the situation, was to be sure her husband had an adequate policy in place (enough life insurance, and LTCi).
If so, how should they have planned?
What type and amount of insurance would have helped? Additional Life insurance, as well as LTCi.
Could they have waited longer to get the insurance? In retrospect, no.
If they had savings and other assets, could they have gotten by on less insurance? Since we now know she is uninsurable going forward, she has to be more diligent than she already is to increase her savings as much as possible to cover future long-term care expenses as well as for the possibility of a premature death.
IV – What does the future look like for the person/family now? Given that the problem was recognized early on (while in her late 30s), there were plenty of opportunities to craft a contingency plan for her and her family.