Health costs more than double when Alzheimer's enters the picture: Fidelity. A clear majority (84%) of brokerage, insurance-distributor, bank and RIA advisors report touched by someone in their client base who suffers from Alzheimer's disease, and even more (96%) say they lack the preparation and education they feel they need to be of meaningful assistance to these clients. These insights come from Fidelity, which polled 350 advisors on the impact of Alzheimer's on their practices.

"With an aging client base and more than 10 million baby boomers projected to develop Alzheimer's in their lifetime, if advisors haven't already been impacted by the disease in their practices, the odds are they soon will be," says Gail Graham, an executive v.p. with Fidelity's Institutional Wealth Services unit. "It's encouraging that advisors are looking for education and resources to help them better prepare clients financially for the costs associated with illnesses such as Alzheimer's."

Although half of the advisors surveyed say they would be reluctant to raise the subject of Alzheimer's with a client they suspected of having the affliction -- mainly for fear of being wrong -- the impact of the disease is significant enough to warrant attempts to overcome this reluctance.

All encompassing

Fidelity figures a 65-year-old couple that retires in 2009 will need about $240,000 for healthcare expenses. Put Alzheimer's into the equation for just one of the spouses and the expense more than doubles to $495,000. And that's assuming an average life expectancy of about 17 years after retirement.

The main things advisors want to help them feel more prepared to assist clients impacted by Alzheimer's are best-practice guidelines, greater understanding of insurance and protection products, and legal advice to assist clients.

Right now, 59% of the advisors Fidelity asked say they have plans in place in the event a client is diagnosed with Alzheimer's or something as debilitating. The rest say they prefer to handle such things as they arise.

Aside from the personal, emotional and psychological effects of Alzheimer's, advisors say those who suffer from the disease are effected by day-to-day financial planning, legal and insurance issues -- down to things such as scheduling and paying caretakers.

In working with a client diagnosed with Alzheimer's or thought to have the disease, the top strategy among advisors is to "make sure that a spouse or other family member participates in decision making," followed by "[make] certain all activities and decisions are confirmed and well documented." Few advisors say would be in favor of transitioning clients with Alzheimer's elsewhere.

"The long-term relationships and trust that advisors build with their clients become more evident when a client is beset by an illness such as Alzheimer's," says Graham. "Many advisors recognize the unique role they play with their clients and want to do what they can to help."

More than half (54%) of advisors say they have seen increased demand for insurance or protection products over the past three years, such as long-term care insurance, which can provide financial support for clients suffering from Alzheimer's.

The bulk of advisors (80%) say they have access to in-house products to meet this demand; the rest say they refer such business to third parties.

Only 63% of advisors have liability insurance to cover client disputes or liability claims -- even though 13% of them say they frequently disagree with actions or decisions made by an individual granted Power of Attorney for a client who suffers from Alzheimer's.

In any event, Fidelity is keen to offer practice-management advice for advisors with clients who suffer from Alzheimer's. Some of its headline ideas are:

Train staff members to identify the symptoms of Alzheimer's. If anyone gets concerned about a client's ability for sound judgment, advisors may want to consider sharing these concerns with appropriate associates within the firm and take the steps necessary to protecting both client and the firm.

Make serving clients with dementia-related diseases such as Alzheimer's one of the firm's specialties. This service offering could include home visits to assist clients with financial-planning matters and paying bills, as well as references to third-party providers of healthcare and assisted-living services.

Develop a relationship with the Alzheimer's Association and get listed among the financial and legal planning resources it provides. The Alzheimer's Association is one of the first places for the patient and family to turn to for resources, so the affiliation may be useful to the practice and assuring to Alzheimer's-afflicted clients and their loved ones.

Fidelity is also helping advisors spread awareness of Alzheimer's disease by offering them a kit -- including DVDs, talking points and other resources -- to hold screening of the HBO television production the "Alzheimer's Project." -FWR

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