Podcast Summary: "Life Insurance With Long-Term Care Rider" Jill on Money with Jill Schlesinger | Release Date: June 9, 2025

Introduction

In the episode titled "Life Insurance With Long-Term Care Rider," host Jill Schlesinger, CFP®, along with co-host Mark T. O'Connor, delves into the complexities of integrating life insurance with long-term care (LTC) riders. This episode features a candid conversation with Cheryl and Harry, a retired couple from New Jersey, who seek advice on optimizing their financial strategies to ensure long-term security.

Guest Introduction and Financial Overview

Cheryl and Harry introduce themselves as a retired couple in their mid-70s with a stable financial foundation. Harry is 75, and Cheryl is 74. They rely primarily on pensions and Social Security as their income sources. Here's a breakdown of their financial standing:

• Total Assets: Approximately $650,000
  • Cash and CDs: $300,000
  • Money Market and Savings Accounts: $155,000 and $80,000 respectively
  • Annuities: Two non-qualified annuities totaling $222,000
  • Retirement Account: Cheryl has a retirement account valued at around $117,000

Their annual income stands at roughly $180,000, with monthly take-home pay of $11,500. Impressively, they manage to save about $2,000 each month, contributing to their substantial cash reserves.

Notable Quote:

“You sound like a very good... Looking couple with those pensions.”
— Mark T. O'Connor at [04:15]

Discussion on Annuities and Financial Strategies

The couple discusses their consideration of transferring some of their cash holdings into a fixed-interest annuity. They already hold two non-qualified annuities, purchased in 2021 and 2022, which are nearing their maturity dates in January and August respectively. This brings up questions about the efficacy and necessity of acquiring additional annuities.

Notable Quotes:

“We are trying to keep ourselves going for as long as we possibly can in looking into making some, moving some cash.”
— Cheryl at [03:35]

“You already have two annuities would almost be like the suggestion out loud to me is why?”
— Mark T. O'Connor at [07:14]

Mark suggests evaluating whether another annuity is necessary, highlighting the potential redundancy and questioning the strategic advantage of such a move given their existing financial instruments.

Concerns About Long-Term Care and Healthcare Dependency

A significant concern for Cheryl and Harry is the possibility of requiring long-term care (LTC) and the implications it would have on their finances. Specifically, Cheryl is worried about losing healthcare coverage should Harry face health issues, given that their healthcare is primarily tied to Harry's status.

Notable Quotes:

“Just the possibility of long, of a need for, you know, long term care.”
— Harry at [08:49]

“All of our health care comes from Harry. So if something were to happen to Harry, I would have no healthcare.”
— Cheryl at [08:53]

Mark emphasizes the risks associated with their current setup, explaining how the loss of Harry's income and healthcare coverage could significantly disrupt Cheryl's financial stability.

Advice and Recommendations

Mark advises Cheryl and Harry to seek an unbiased financial analysis before committing to any additional insurance products. He underscores the importance of working with a financial planner who is not incentivized by insurance companies to ensure objective advice.

Notable Quotes:

“I would want somebody who is not compensated by the insurance company to do the analysis.”
— Mark T. O'Connor at [11:14]

“The complexity of it is, does not come from today. It comes from what happens if Harry dies after age 82...”
— Mark T. O'Connor at [12:33]

He further recommends specific fee-based advisors in New Jersey who can provide Cheryl and Harry with a comprehensive evaluation of their options regarding life insurance and long-term care riders.

Conclusion

The episode underscores the intricate balance retirees must maintain between securing their income, managing assets, and preparing for unforeseen health-related expenses. Cheryl and Harry's situation highlights the importance of proactive financial planning, especially concerning long-term care and dependency risks. Mark and Jill emphasize seeking objective professional advice to navigate these complex decisions effectively.

For listeners facing similar dilemmas, the hosts encourage reaching out for personalized guidance to tailor financial strategies that align with individual needs and circumstances.

Resources Mentioned:

• Contact Jill on Money: jillonmoney.com
• Money Watch Podcast: Available on standard podcast platforms
• Fee-Based Advisors: Recommended by Mark T. O'Connor (details provided on the podcast)