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How Healthcare Planning Has Become the FA's Domain

August 9, 2018

The majority of wealth management firms now play some part in advising their clients on healthcare planning, according to a recent study cited by WealthManagement.com.

Seven out of 10 advice firms are involved in helping clients with healthcare, from referring clients to specialists to assessing and overseeing their clients’ healthcare needs, according to a recent survey from the Family Wealth Alliance, the web publication writes.

That said, the sample was rather small — just 50 wealth management firms, of which 52% were multifamily offices, 20% were single-family offices, 14% were wealth managers and firms acting as chief investment officers and 14% were support firms, primarily those that provide accounting services, WealthManagement.com writes.

One half of the respondents say they’re witnessing growing medical issues in their clients’ households and go as far as suggesting health advisors, according to the survey, the web publication writes.

And one half of the firms surveyed say their clients use concierge physicians or VIP programs at hospitals, the survey found, according to WealthManagement.com. As life expectancy rises, planning of wealth transfers has become more complicated, affecting succession plans and family governance, according to the survey, the web publication writes.

Firms are also increasingly called on to assist with rising income needs later in life and services such as advice on eldercare, the survey found, according to WealthManagement.com.

"As we all live longer, families are being challenged to adjust their plans to keep pace,” said Thomas Livergood, founder and CEO of Family Wealth Alliance, according to the web publication. “So too are family wealth firms being called upon to expand the healthcare-related services for aging clients and their private families."

By Alex Padalka
  • To read the Wealth Management article cited in this story, click here.