Keeping clients in their home

About two years ago, Elli Schochet, CFP, a now-20-year MDRT member based in Toronto, Ontario, Canada, spoke with a friend’s mother-in-law, whose husband had gone from being a brilliant accountant to struggling with dementia in a matter of six months. His wife, worried about the costs of running his practice and owning their home while paying for the necessary care, even considering canceling a $500,000 life insurance policy and selling their home.

“It was an extremely difficult process watching someone who’s confident, outgoing and resourceful and more alive than life, running a practice, doing what he does, going in one day to just being incapacitated, and the ripple effect it has on the family,” Schochet said.

Rather than canceling insurance and selling the home, Schochet recommended his client take out a line of credit to help pay for the home, with the line of credit able to be paid off by life insurance. “Clients often appreciate what we do, but the chocolates from her and the gifts from her kids and the notes of thanks really underscores that this was a pivotal change in her life. And she recognized that going through a process, there was light — it’s a dim light because she still has to live with this situation, but she’d be able to get through it.

“Fortunately, because of the gift of life insurance and planning, it may make it just a little bit easier to live with it.”

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