In 1912, when the Titanic left England, everyone believed it was unsinkable.  It was the largest and most luxurious ocean liner of its time, built with state-of-the-art technology and praised as a marvel of engineering.  Unfortunately, the lifeboats were little more than decoration, and we all know how that story ends.

Now, look at the advisory community and their interaction with the American consumer — those they believe can "Self-Fund" any future Long-Term Care (LTC) needs.  The advisory community and their clients are confident that because they have assets and investments, they're insulated from catastrophic risk.  After all, they keep repeating the mantra that they can just "write a check for care" if needed.   But what happens when the iceberg hits?  

Let's look at what happened to the characters you know from Titanic the movie.

The Overconfidence Problem (Cal Hockley)

Your clients aren't planning for Long-Term Care; they're assuming their wealth is unsinkable.  Just like Cal Hockley, the wealthy aristocrat from the Titanic who believed his status and money made him invincible.

"Even God himself couldn't sink this ship." — Cal Hockley.

Cal's arrogance led him to underestimate the disaster unfolding around him.  Your affluent clients are making the same mistake, believing their wealth alone is an adequate defense against the unpredictable.  They believe their money makes them untouchable.  And that arrogance is what sinks them.

Market Risk & The Buy High, Sell Low Trap (Jack Dawson)

Consider last week's volatility—a stark reminder that markets can shift suddenly and dramatically.  It's not just a risk; it's an inevitability.  Even the wealthiest clients felt the shockwaves.  And how did most of them respond?  They sold assets, locked in losses, and made emotional, irrational decisions.  Why?  Because the psychology of the American investor is predictable: Buy high.  Sell low.  Panic when things go wrong.

Ask yourself: If your client's plan for Long-Term Care depends on their ability to hold assets during a financial crisis, do they really have a plan?  Or are you betting their psychology won't betray them at the worst possible time?

Like Jack Dawson, the unexpected and unpredictable can appear out of nowhere.  His presence on the Titanic disrupted the lives of others, just as sudden market downturns or health crises can wreck even the most seemingly bulletproof financial plans.

They believe their wealth is "unsinkable." But when the market hits an iceberg, that wealth starts sinking fast.  And with Long-Term Care costs skyrocketing, how quickly will their assets drain if they need extended or specialized care?   Faster than the Titanic sank!

The Illusion of Liquidity (Rose DeWitt Bukater)

Even if your clients have substantial wealth, how much of it is actually accessible when they need it?  If assets are tied up in stocks, real estate, or tax-advantaged accounts, turning those investments into cash for LTC can trigger massive tax bills or force them to sell during a market downturn.  Like Rose DeWitt Bukater, who appeared wealthy and privileged but was trapped by financial constraints and societal expectations, your clients' wealth may not be as accessible or effective as they believe.  Rose survived because she was willing to adapt and recognize the truth of her situation—your clients need to do the same.

Will your clients cling to their illusions or face reality?  Because only one of those options works.

The Ship & The Lifeboat (Molly Brown)

Investments are like the Titanic—a grand vessel built for comfort, growth, and wealth-building.  But when you hit an iceberg, you need a lifeboat.  Enter Molly Brown.  Wealthy but practical, resilient, and willing to do what was necessary to survive.  Unlike Cal Hockley, who clung to his wealth and status even as the ship sank, Molly took action and adapted to the crisis.

LTC insurance is that lifeboat.  It provides immediate access to funds when needed, regardless of market conditions or liquidity issues.  It offers guarantees that your clients' assets can't provide.  And most importantly, it transfers the risk away from their portfolio.

So, the question isn't whether your clients can afford to self-fund their LTC needs.  The question is why they would want to.  Would you rather sit on a Titanic deck chair (investments) while it's sinking or get on the lifeboat (insurance) that guarantees your safety?

All those wealthy people and not enough lifeboats.  What does that sound like today?  It sounds like many Americans are clinging to the belief that they can "write a check for care" when the time comes.  Maybe they're hoping they'll just find a wooden door like Rose did and float to safety.  But luck and scraps of wood aren't a plan.  And unlike in the movie, no lifeboats will be waiting around when they realize it's too late and their Self-Funding strategy wasn't such a great idea……

The Titanic was unsinkable—until it wasn't.  Your clients' wealth feels secure—until it isn't.  If you're advising them to self-fund LTC, are you really telling them to sail without lifeboats?  When the iceberg (or The Silver Tsunami) hits, will your clients be prepared?  Or will you be left explaining why their plan sank, along with their wealth?

20250407