I cannot imagine any professional “Financial Planner” leaving such a gaping hole as the Medicare B co-pay unprotected. My guess is that this individual was not a true “Financial Planner” but an insurance agent looking for a commission.
This type of advice is understandable for someone who is single, has hundreds of thousands of dollars in their retirement savings and has no children they want to leave an inheritance.
In this case, the individual in question does not have hundreds of thousands of dollars and there are children in the picture. In this case, I would classify the advice to cancel a Medigap without replacing it, “malpractice.”
It has been illegal for years for an insurance agent to use the title of, “Financial Planner.” Unfortunately, that law is only enforced when a member of the public complains and has proof. It is one of the most common “cons” of my industry.
The way to know if your “Financial Planner” is legit is to see how he gets paid. If you pay him a set fee, he is probably legitimate. If he waives his fee, unless there is some sort of explanation why he would do that, the odds are that he is probably nothing more than an insurance sales person.
You may be able to trust him to do the paper-work involving your insurance purchase, however, I urge you to take any advice he gives you with a grain of salt. He has already shown that he is willing to violate one law. Who is to say that you can trust him in other areas.
In any case, this individual is now 82 and on kidney dialysis. He cannot medically qualify for Medigap. If his dialysis is because of End Stage Renal Disease (ESRD) he may not even be able to get Medicare Advantage when it is next offered.
Below is the advice I gave him. If you have a different idea that could help him, leave it in the comments area.
- Is Medicare The Only Game In Town? (theinsurancebarn.wordpress.com)
- How Are Insurance Agents Paid For Medigap (theinsurancebarn.wordpress.com)
- Can You Rely On Medicare To Pay For Your Long Term Care Needs? (theinsurancebarn.wordpress.com)