After taking an inventory of potential health pitfalls and potholes on a client’s road through retirement, Karmali and his team assess how they may affect the client’s goals and desires. He says that every dollar devoted to meeting a client’s healthcare needs potentially means less pouring into other buckets like an inheritance or estate plan. After understanding customer needs and non-negotiation, Karmali and his team can begin to see what funding strategies and solutions they can use to address any shortfalls.
“From their net worth, we can look at most assets, not just investments, and try to assess how they can be used for that kind of need,” he says. “Is there an insurance product that we can look into in case the problem emerges? That way, they don’t have to dive into dedicated assets or use them for other goals.”
Another planning consideration from a holistic perspective, Karmali says, is whether it makes sense for a client to size their home just right. For example, some clients may want to consider moving from a two-story residence to a bungalow, which will not necessarily bring down costs, but may make it easier as they go through the aging process.
“It’s amazing how many Canadians don’t realize that as they age, they may have to redo their home,” says Karmali. “Giving a heads up and planning in advance is something that our customers greatly appreciate, as opposed to doing things at the last minute and retrofitting, which can be a problem.”
While the health care provided by the Canadian government is a matter of pride for many citizens, Karmali and his team have a more conservative bias in assuming that people will face greater health expenses as they age. With that approach, he feels that health care planning is a definite necessity for the underrepresented future in the country.
