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November 28, 2020 8:30 am
Hans goes over the recent report released by the Department of Treasury about the status of long term care insurance in the United States. He explains what they found, what changes might be made, and what it means for you.
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Christmas gift why not the one with the chicken leaving applicable waves as Christmas gifts chicken maybe it's not the get for your family, but it gives the perfect gift for poor family ninja chicken can break the cycle of poverty for poor family yes chicken chickens and provide food and nourishment for family and they can sell those eggs at the market for income when you donate a chicken or any other gospel for Asia. 1% of what you give goes to the field and get the ball went gospel fundraiser to support family of Jesus family this Christmas and give them a six explanation see chickens and camping is chosen, just starting thinking this is the Truth Network welcome to finishing well brought to you by Cardinal guy, certified financial planner long shot best-selling author and financial planner helping families finish well over 40 years finishing well will examine both biblical and practical knowledge to assist families in finishing well, including discussions on managing Medicare IRA long-term care life insurance and investments and taxes.
Now let's get started with finishing well will have fun today on finishing well, a certified financial planner today show really a disciple of many things. First of all, the task force on long-term care insurance is been study merit was really beautiful to me as he sent me this Bible passage is been thinking about actually four months I guess. In Romans chapter 3 verse two in the ESV it says therefore whoever resists the authorities resists what God has appointed, and those who resist will incur judgment to get to its bonds.
Yet you related to me is good when I'm looking through another translation.
It just opens Romans 13 the chapter just to submit to the government and I'm thinking okay you know and so I read the passage first of me. I just probably didn't particularly like that but knowing I'm reading the Bible in my daily reading about better check this out calls for submitting. I need to start doing some submitting as I read through their it's really teaching us that it's not about that.
The government is perfect or the leaders in the government make perfect decisions at all.
In fact there the same flawed people that we are it. It's really a test from God in what Paul saying here is to to our ability to learn to be a disciple. It's a leadership test where were in turn sucks. I want to get along with telling everybody what to do when I read the Bible for myself and I'm in a leave the preaching to other people that I just read this I think young. Check this out and I think the application is in my work. He has the government and a government program and with the authorities have to say affects all seven sections of my book with all the seven sequences of radio shows that we do and what were talking about today's long-term care talking about a government task force that's calling really just getting together looking at the problem within long-term care and I'm reading this and I'm thinking like what am I getting out of this and what I'm getting out of this is the biggest thing that I fight and doing my work is people who can't get out of their own way. Okay, are there even people who do business with me and they buy certain things for me. They take certain advice from me, but then they carve out areas that are like no touch areas and long-term care seems to be one of those and a lot of errors of people just don't want to deal with. Or you could just take it down to its basics, people are not willing to submit to the authority yeah including me and I resemble that remark and and and clearly raising island. Paul is talking about the Samantha time he wrote this I will talk about those government authorities like and can you say narrow and the guy that was put in Christians and that's no now I'm supposed to submit the little guy Roman prison right right or if you look at it the pilgrims have been study Americans at Thanksgiving, nothing on all that stuff like this it would just happen on the Saturday, but you know the, the government was sending these people over in the boat that were taken up their food. In other words, that they kept in the early days of Plymouth colony. You know they didn't have enough meant food for 50 so send me 34 my guys are 35 more and and yet leave the ship so that they actually had to supply food for the ship and as I've as I thought about it these guys not only submitted to the authority but then they almost went the extra mile by different some of their food to the ship that had to get back to England is just beautiful illustration of okay God you're trying to teach me how to be a son by putting people of the authority in my life and and in what ways can I do this you know and totally honored. Yeah so is this relates to long-term care services task force all about you as I'm reading a lot of things. I spent a lot of my time reading about my business and really reading about my ministry and how I what affect do I want to have on people with what affect does God want me to have upon people in it and I think in terms of the seven the seven subjects today. You know today's subject is long-term care and the federal agencies so treasury under religion and Health and Human Services and then the national Association of insurance commissioners have this federal interagency task force and the reality is probably not Alaska, why are you talking why you bring it up as I want to read with these people are talking about what they see as problems with AC's solutions to the problem and there the regulators and the NAIC of the national Association of insurance commissioners. The ones that regulate insurance and they regulate insurance in every state, so it is different so constantly.
I have to have 50 different state insurance licenses and my company does to operate in all 50 states and the laws are a little bit different and what the NAIC is doing is trying to promote uniformity in the really trying to do that to keep the federal government snows out of insurance but back to the topic at hand.
These people still came up with some Simpson real good takeaways and some of the identification of the problem and the core problem as I see it reading this study as they see it is only 10% of the people who should have could have ought to have long-term care insurance. Only 10% of them do 90% of the people which I'm talking about you all don't have a solution financial solution to the problem of long-term care. So if you are unable to take care yourself and your unable to take care yourself for a reasonably long period of time, facing financial hardship at which is an interesting thing is that I happen to know is that in your own life right your mother needed it and you knew she needed it, and so you even help pay the premiums to make sure that she didn't end up in that 10% and oh my goodness did that work out in her life, and "it really did it did huge and she made the rest of the stories in my book.
So anybody that you know wants to read the whole story can can get on my book. I tried to sell my father long-term care insurance while he was alive and use a 37 year insurance man and he just PTE certainly was Jesus. He went on for so if anybody needed this code. It was my dad. And the worst person to goad my dad was his oldest son died that completely.
I ramble evermore literally. After my father passed away on down there helping my mother with a number of things and I was the chosen one in the family to handle my mom's finances for the rest of her life after my father died and the very first thing I did as I wrote her long-term care insurance and I said and my sister was dead set against. I mean she was soup is not just against it. She was really against it and so I went ahead and did it anyhow. I paid the premium for my mama. I told her this from the top of the premium for this and so I did and about a year later my mom just said you you know II need to put that premium out of my money so I moved it over there. This was many years before she needed.
This was back when right after my father passed away and we didn't buyer a huge policy because she really couldn't afford that we bought about a year and 1/2 with the coverage, but we bought so much daily benefit and then then then deflated over the years that it ended up cover and are really for about 2 1/2 years which was it was a blessing to to have that amount of money per month coming in for either home healthcare, which we use for a while or nursing home or assisted living. We collected over $200,000 on the policy and said it was it was a blessing and another thing that occurs to me is is it tells a story is enough. Your car salesman like I have been all my life know what card you sell your mom hadn't what price you know, you know, whatever. If you happen to be a real estate agent.
Look at a house to sell your mom and and and are you willing to actually invest in that yourself and so you hear causes heart. You might think wow yeah you know this is all about, you know selling insurance if it has to do with what the federal people came up with this protecting people's assets because of the total lack of information that that people have about what happens on so many people like myself just guess that Medicare is can a pay for it or something the government can handle it so when you read through this study, which I'm not asking you to do right and I read through their when I read it. I'm saying this is so, what are these people admitting to okay because it was really clear in there that there like we own this thing work here we are with the state regulators of insurance were the federal government with the treasury and the Health and Human Services administrators Medicare and few other agencies that were thrown in there and it's just they collectively are saying this is a problem because we really have no federal national solution for long-term care in place we don't foresee having one now there is a federal solution for long-term care for people that have no assets left after they spent their downscaled Medicaid and that's in place, but that also is that she is more and more it's break in the federal government so these people are really talking about a real problem yeah and not to mention if you went and visited anybody in one of those Medicaid and I certainly had a dear friend passed away in the spring and and oh my goodness, I mean like you know way understaffed. You know, just unbelievable stuff that I witnessed I won't go into details but let me just say before you decide to give away all your assets so you can get a Medicare nursing home go visit one well and that's a problem for the federal government to because they're picking up the tab them in the state share together. So these folks got together and it's very extensive study and there there saying that we haven't been very effective in influencing the general population who should be buying this private solution. If we've only got 10% of the people. The goodbye So as far as me in the business. II just want to affect my little piece of the world. I'm to be at peace if I can affect a number of people and specifically listeners the clients people that have Medicare supplement insurance with us. We've which we suffer the same problems where we live by Medicare supplement from us.
Read my books.
They do all the stuff and then just something that I don't think we have more than 10% of our Medicare supplement plans covered under some form of long-term care insurance part of the problem in that aspect, and so that what they came up with are some solutions to this and propose solutions in escrow really gonna talk about in the second part we are so we need to let you know this show is finishing well brought you by Cardinal guide.com cargo guide.com as we go to find it.
Hans book which has always been stuff on this in 07 Maurice specific the ones that were talked about today is his long-term care. This is something one of the really things that open my eyes to so many different that was in this part that I have no one of what was going so you got a lot to share with the second partnership Hans and I would love to take our show on the road to your church, Sunday school, Christian or civic group. Here's a chance for you to advance the kingdom through financial resources and leveraging Hans expertise and qualified charitable contributions veterans aid and attendance IRA Social Security care and long-term care. Just go to cargo guide.com and contact Tom to schedule a live recording of finishing well, your church, Sunday school or civic group contact Tom Cardinal guide.com that's Cardinal guide.com welcome back to finishing well certified financial planner Hans Schild today show I federal task force on long-term care insurance and and so we got some cool tech takeaways for you in this segment on innocent things and Hans discern from the study that would be really helpful.
I think everybody will and you know the 10% number hasn't moved for 25 years.
I'm sure there's some people that had a 25 years ago had a policy and then they lived on the use that they passed on some new people of bought it.
But as you refigure the number of 10% is just consist I always say this when I get done reading this weather comes from the federal government. However, this is just. It's tragic that that that number should be more like 30 or 40% stuff 10% know what they came up with as some key takeaways are some solutions. Number one is they just said that the current products are too expensive and I would would agree with that. Now as soon as you start lowering the price you take away benefits and decisions are taken away benefits the insurance commissioners and a convex. I know you, you gotta pay for that. You gotta pay for this guy have this so they kinda got in their own will circle in, but it's just the consumer looks at the solution and sometimes the solution looks worse than the problem which is paying the premium for the stop and one suggestion that they did bring up was to encourage more insurance to be bought, what was called short term care insurance or recovery care, which is exactly the policy that you purchase from exactly that was much less expensive but now both Tammy and I have it and say were excited that we have it and feel like we you know where or not command up and that's efficient that our friend when you know you don't have to go to many trips to one of those to say you know I don't know what happens. I never want my wife in that place that I met and in in an understanding that that Medicare was not pay for that situation.
We got have some we can afford that. So they're here, they're suggesting we come out with something and am reading this essay where you got it we got in 37 states so that is a bit of a problem that I hope that this will legitimize it for those other will.
13 states in the district Columbia which is 14 jurisdictions where they will perhaps allow and approve the short term care policies because they're a blessing here's called recovery care then they also talked about putting benefits on the policy for people before they get on a claim so that they could be better prepared for like needing care such as maybe education programs for families of somebody like if you have a stroke and you're gonna need care but your families take care of you.
Now that were to insurance coverage you pay for your family to go to learn how to care for you properly, or perhaps they'll pay for modifications to your home. That type of thing that's probably the suggestion that I'm least excited about not not because it's not worthwhile. I just I don't think it's gonna move people to do anything if you dad those benefits is just can add more costs and depending on their education can get back to that. Knowing what I know about that subject is some if they had a class I could go to the learn how to take that under the circumstances, and in what assets to be able leveraging those kind of things. Well, how awesome of that class B, I mean if the light is but the thing is, those classes are available now and is that there are there are programs out there in the community that have to be you know I will talk about them.
Another shows THOSE classes and most of them are very expensive and he's gotta pay some money for the meeting room or something. Okay then then the next suggestion was to have more and better inflation options, which I think that inflation is a big concern some of the jury age is if you don't use this to your 90 you're 65 now 25 years from now is pretty reasonable to assume it's gonna cost more to get this coming care than it does now. Yet, many times the inflation component is more expensive than the base policy itself. So, than the price gets blown up out of proportion and the people by nothing. You know what I meant to tell folks is when we get together and we talk about this problem. Let's agree that we can come up with a solution that's affordable for you and reasonable and practical, and that may include limited inflation or no inflation. We may just buy more benefits to begin with. Right from the start, we may buy a larger benefit and get that it's something that's affordable for and then the last one that they said is we need to have more public awareness more education I agree with that and what they're talking about is just making the average consumer aware of long-term care. The average person turning 65 and going on Medicare cannot. I would guess that many of you who are listening who are part of this 90% that you don't have long-term care really haven't had it offered to you much or certainly not any education about so I commend you for listening to the show and that's what we do, that's what I do. This is one of the seven worries and this is probably the one that is the most near and dear to me simply because I think this is where I can have the biggest impact I'm helping you with your money in helping you make good choices with that.
There's a whole lot of other people out there that can do just as good a job as me, but I like to think that I do a superior job of that. But I'm not the lone wolf and that I think in this you just don't hear too many people bring in the horn and the effect that I can have upon you and your family by sound in the horn about long-term care and perhaps influencing you to buy a policy is really a unique effect when you didn't have anybody else hocking this to you very heavily and are not even close.
Now I had no concept of any of this course been a very quick education about some things but honestly wouldn't even know there was a solution.
All the problems I was experiencing well and so you know this is near and dear to me and if I sound like a salesman here. I guess I am a disciple.
I'd like you to to to really investigate this and investigated where you are thinking about you know Paul when he wrote in Romans about you know about getting out of your own way up and went to the subject is brought up my experience of most people's outcome.
The objections outcome. The excuses outcome the defenses you know well just pay for myself and my kids will take care of me.
You know I don't want to talk about that now.
I'm just I want to talk about enjoying my retirement and I don't ever want to go to a nursing home command just on and on and on. A lot of these things people bring up and they just don't serve them well. Typically I'd I'd suggested perhaps you would just investigate the lease as you go sign up for these things. At the end of the thing you just tell me to go away you know I'll do so gracefully.
Again, get back to the car salesman for specialist. I guess I can never get rid of is that I'd been in the car business for 40 years.
I kinda know some about it. Okay kinda know a little bit about used cars kinda know a little bad about a lot of things and all these people come in and you can immediately spotted that they know way more about the subject and you do it right you know they know why they need that model may need to know why they need all those options, whatever. And and here I was sitting there with all this ability to help them right but their glass was completely full and there was but I could sense it is a good car so you know what I'm talking about. You don't dive in because you know you been dismissed already. Is it you're not you're not an authority.
In most folks this is the hardest thing to submit for me. I've sold life insurance for 44 years still write a lot of life insurance on people and it's easier to talk to people about dying in the fact because people know their gonna die and they are just especially when they get to be 6065 7075 people know their gonna die us as Christians, we we look forward to that and look forward to eternity. And that's just a reasonable subject and I just I've have don't have a problem with people know that they're going to go in the hospital that they're going to have surgery that they're going to be taken medicines to go to doctors their gonna suck so a lot of these places that you need to get to to see the value in having insurance to protect you and will we get down to long-term care.
People just like now were dealing with the fact that you might have a period of time during your life or you can care for yourself.
It's almost like people can deal with the fact you, I'd rather die than have my family taken care of your some paid come in and work. Person help me with bathing and dressing and just the activities of daily living.
This is just and then people have so many negative connotations with nursing homes which I do as well. I just would do anything to not put my mother in one of those places. Especially not now yeah was covert so so were talking about really not talking about long-term care were talking about the interference that gets into us really solving this problem. Okay. And what I meant to tell you is work were getting toward the end of the show is you not can it be inclined to purchase long-term care insurance. Just because I give you a logical argument that it makes sense to do this day I can give you that.
But the end of the logical argument is you're probably assailant.
Think about again.
I want to analyze it. Hereby, long-term care insurance because you don't want to put your family through which you can put your family through if you don't have, and you don't have a plan of action. If you could just sit with some of these families as I do all the time. The people that are up there and then they finally you know mom's needs care where we can do about it, and the families don't really know what they need to know about mom or dad's financial situation with her income is what their assets are looking at preparations they've made for this in the family is in a crisis. And then there making decisions about the stock so I would just encourage you to learn about investigated you know if you want to call me up if we want to just go over some stuff on the phone talk about you. I get my books if you read through my books.
I'll be glad to mail them to you for free. Also, you go to my website. You can get the long-term care chapters of both books the book in the workbook for free. You can just download them as a PDF so I would just ask everyone to investigate this Unblinking as it is part of finishing well right is as we have the choices that we make it vastly affect our families and you know if your parents are getting up there. You know how much the choices they made affected your life and in no dearly.
You know my parents affected my life in so many absolutely wonderful ways.
But I would. I really do wish they'd done more research on these areas because honestly it know some of my siblings really suffer through some of the decisions and and they still are suffering. To this day ends and it's hard and and so it's worth the time and the sooner you you get these right. Like all insurance intimate with you. Make these decisions when you're in your 50s.
Your 40s. It's it works out a lot better look. You can get a small policy or large policy with just a single deposit to the insurance company through either an annuity or life insurance policy is called hybrid long-term care. So some folks think I can afford the monthly payment.
I don't want the monthly payment there's a way we can take your IRA or party your IRA or some other savings or something else that you have a CD and we can use it to make a lump sum purchase of long-term care was tons of solutions for this. Once you enter in Cabo Michael at dentist well but it helps to have people know what they're doing to been around so along those lines, Cardinal guy, don't forget the guide. After Cardinal like the birds Cardinal guy.com Hans's books always information, contact him know he would love to me literally love to help you physicist, so thank you for listening. Thank you. We hope you enjoyed finishing well brought you by Cardinal guy.com visit Cardinal guy.com for free downloads of the show previous shows on topics such as Social Security, Medicare and IRAs long-term care life insurance and investments and taxes as well as cons of best-selling book the complete Cardinal guy planning for and living in retirement and the workbook once again for dozens of free resources past shows get Hans book go to Cardinal guy.com if you have a question, comment or suggestion for future shows.
Click on the finishing well radio show on the website and send us a word. Once again that's Cardinal guy.com Cardinal guy.com. This is the Truth Network