This is the Truth Network. Um Welcome to Finishing Well, brought to you by CardinalGuide.com with certified financial planner Hans Scheil, best-selling author and financial planner, helping families finish well for over 40 years. On Finishing Well, we'll examine both biblical and practical knowledge to assist families in finishing well, including discussions on managing Social Security, Medicare, IRAID, long-term care, life insurance, investments, and taxes.
Now, let's get started with Finishing Well. Welcome to Finishing Well with Certified Financial Planner Hans Scheil and today's show Exciting opportunity, really. Long-term care benefit with relaxed. Health care qualifications and relaxed health qualifications, I should say, and so. You know, really, some new products are out there that I think you're going to be excited about if this has been part of your concern.
And it always is part of mine, I can assure you, because the whole idea of this show is finishing well. And so, you know, it came from certainly Paul talking about it in 2 Timothy 4, verse 7. He said, I fought the good fight and I have finished the race. And of course, he finished extremely well, right? And so, as we look at our long-term care planning, right, it isn't about fear, it's about.
You know, stewardship in so many different ways on the seven worries on that final lap. And see, you know, God doesn't just care about how we start, He certainly cares about how we finish. And, you know, what does it look like, really? To remove the burdens from your family for that final lap, because long-term care insurance is so much more about the people that love you than it is about you. You know, because when those things start to happen, you know, you're liable to be, or I know I'm liable to be, out of it.
And then what have I really left in that final lap from a standpoint of stewardship on my family? And so, Hans, this is an amazing opportunity. As I've watched the video that you guys have done on these new policies, and wow. Yeah. I mean, all the thing that comes to my mind is gratitude.
I'm always thankful. for insurance. And you know, it's what I've done for be fifty years this summer. And so to take some time and be you know, have gratitude and just be gracious about the fact that we have these insurance solutions that we can align with people and just put them in a better place. Yeah.
This product or actually it's now two products from two different companies Um what the gist here is These insurance companies are able to take people that I previously just had to say I'm sorry, we We got nothing for you. Um Meaning that, you know, I'm talking about you know, the clients that I'm thinking about that have Parkinson's. Um I mean we can we can insure people for long-term care Uh that have Parkinson's MS. Cirrhosis of the liver.
Now, some of these things can't be in their last state. I mean, you can't be have progressed Parkinson's Um You can't have MS. where it's acting up to the point that you You know, you need a wheelchair or you need braces or so I'm not Stating here that all people that have Parkinson's MS cirrhosis of the liver. Rheumatoid arthritis the same way, is it? Uh people Yeah, I've had to say no to these people for My whole career is that, you know, they're looking at long-term care.
And then, you know, I find out they have arthritis and I think Well, we can get them insured with somebody with arthritis, and then I find out it's rheumatoid arthritis. And I've just had to say sorry. Yeah. um an aneurysm in the recent past. I'm just looking through a list.
of people that we have successfully gotten them on this policy. and gotten them long-term care insurance with these conditions.
So and where I'm really kind of opening with is my gratitude. You know, a lot of times I'm doing this in private because if you sit around and pray. And have gratitude for insurance companies, you know, you're going to get a lot of people raising their eyes and just, yeah, right. You know, so I'm not supposed to thank this insurance company, you know, and I. You know, my answer to that would be yeah, actually that's what I'm doing.
But I'm good. using a little humor here, and I'm getting specifically into Like Th these products just amaze me. And again, Um, oh, yeah, because I mean, you're sitting there with that client in front of you. Their family's heartbroken. because of a diagnosis of Parkinson's disease.
Right. And they're seeing a future that they don't want to look at, and they're trying to plan for it. And you have to tell him that the Mm-hmm. that oh man, if you had just come to me three weeks ago. We would have had something for you.
But now you actually you have this opportunity and y you know, that's why most of us go to work in the morning is try to help somebody. And now you've been given the tool to do that. Yeah, and we've boy, we've done it. I mean, I was told by uh the one company that uh we've been doing this for about three years with this product. Um that we were the biggest producer.
Uh in the company. I mean, they don't actually publish that stuff, but they just, when I showed up at one of these industry meetings and went over to their little booth. The guy was telling The big guy over there, when I was asking him a few questions, he says, This is our largest producer in the country. And a lot of that is we we do so much long-term care insurance.
Now I want to talk a little bit about the policy and how the insurance company is able to do this. Yes. Um so th this is an annuity policy. with a long-term care benefit.
So and it's very important. that it's tax qualified long term care insurance because The benefit payments coming out of this annuity.
So when money's coming out of the annuity, is paying you a benefit for long-term care. It's tax-free. And that's really important because I'm going to try to explain this policy in very simple terms. is you put $100,000 Yeah.
So it has a pretty stiff initial deposit. It it does it as small as fifty, but fifty is the least that you can start one of these.
So you gotta have some money. to get the thing going. Um But we use $100,000 as our example. is you immediately have $300,000 worth of long-term care insurance.
So you have the hundred thousand that you put in And then you've got Two more times a hundred thousand. for a total of 300,000 in long-term care benefits. And those are paid out over 60 months. You know, so that adds up to about five thousand a month. that this thing is going to start at.
Okay. It's mind-blowing, right?
So when you think about what you just said. Here comes this person, they've been diagnosed with early form of Parkinson's disease. And they buy a hundred thousand dollar policy and two months later they say, oh, wow, we got to move into an assisted living, then they're immediately set up for three hundred thousand dollars worth of long term care. For that hundred thousand dollars. And so Do you know, w when I'm explaining this to people, Here's when I really know they get it, and I'm thinking of a specific example of a guy I was talking to you about earlier.
But he says, how do they do that? How does the insurance company do that? And my answer is Well Look. Let's not worry about the insurance company. They know how to take care of themselves.
But What I'm going to tell you is for the the example you just created, They're just sending your own money back to you. for the first year and a half, two years. I mean it just they got a hundred thousand.
So they send you 5,000 back and 5,000 back and 5,000 back. Yeah. you know, it takes 20 months, that adds up to $100,000.
So you just basically gotten your original deposit back. but now they keep paying for another forty months.
So you start adding that up. Um That's when he said to me, how do they do that? And it's just... They got it all figured out. Yeah.
Um But less likely is this guy going to go in there two months from now because they're not going to take everybody with Parkinson's. You've got to do a video. screening So they're really on the video screening that they're doing like over Zoom. uh for underwriting they're gonna They're going to have you sit up. Sit down, stand up.
walk toward the camera, turn around. You know, I don't know. put your hand around, touch your nose or something. I mean, they're just trying to make sure you're not holding on to the furniture. that you've got mobility.
And then they're going to also Test your cognitive skills. a bit and they give you one of those delayed recall memory tests. And they're just kind of getting a look at you. And if you've got Parkinson's, we're just using that as an example. In the advanced stages, they're going to be able to look at you, and you're going to have trouble walking and.
doing all that stuff.
So Those aren't the people I'm talking about. There's a whole bunch of people walking around out there that have Parkinson's. You don't even know it. I know it because they tell me on the way in, because I asked their health history.
So, um It's just amazing. You know, there's more to it than I'm just giving to you right here. I'm just trying to get to the gist of it. And you can put more than 100,000 in here. You can put up to like.
for $500,000. You know, I've never really had anybody put that much in there, but there is a maximum. but I've certainly had a number of people put in 150. And I've had a number of people put in 200,000. into these things just because they want to get a larger benefit.
Right. Sure. It's pretty good.
So if you put in 200, you'd have 600,000. sitting there in case, you know, you had Alzheimer's or something that you might be in there for ten years.
Well, it's actually better than that because you're 200,000. is going to grow going to get interest credit to this thing like any other annuity.
So, and then Whenever your 200,000 grows, You know, let's say your 200,000 grows in the first year. Two. 210. I'm just going to make the math simple.
Well now you're Long-term care benefit grows to $630.
So However much your money grows, It's three times that amount. of the long-term care maximum that grows. That makes sense? Oh, absolutely. Yeah, like other annuities, it's baking and of course you know, we're using the extreme example where somebody goes right in, but chances are that isn't n normally what happens.
It takes a period of time, or hopefully never. And that's the beautiful thing about it being an annuity and the hopefully never point, you still have your money. Right. And you have your money. And you could go get it.
later if you really needed it. But nobody ever does because that would mean ending your long-term care insurance.
So Really Yeah. You keep this thing your whole life. you don't need it or you just need it a little bit. then most of that money in the annuity is going to go to your heirs. Right.
Which is great. There you go. This would be a good time to remind you that this show is brought to you by Cardinal Guide, CardinalGuide.com, where if you go to CardinalGuide.com, beautiful website with seven tabs, seven worries, and when you click on one of those, you'll see a video right along those lines. Today is, of course, being long-term care. And they have an amazing video with all these charts based on the different amounts and stuff we're talking about today and the examples of the two different companies that it's available through.
And so you can find all that at cardinalguide.com as well as the Contact Hans or Tom page. Very, very important. Easy way to find out what this would be for you. Or Hans's book, The Complete Cardinal Guide to Planning for and Living in Retirement, the workbook that goes along with that. It's all there at CardinalGuide.com.
And so when we come back, we'll be talking a whole lot more about these long-term Care benefits with relaxed health qualification. Investment advisory services offered through Brookstrone Capital Management LLC, abbreviated BCM. a registered investment advisor. BCM and Cardinal Advisors are independent of each other. Insurance products and services are not offered through BCM, but are offered and sold through individually licensed and appointed agents.
Cardinal Advisors is not affiliated with or endorsed by the Social Security Administration or any other government agency. Welcome back to Finishing Well with Certified Financial Planner Hans Scheil and today show long-term care benefit with relaxed health. qualifications. It's a spectacular uh stuff that that's now available, Hans, and so carry on. Yeah, so I I really want to position this That The the the star of the show here is the relaxed health qualification, the fact that people with certain diseases.
Um which is a pretty long list. are able to get this stuff. They still got to pass through a little screening. And it's different between the two companies. But of course, we analyze all of that.
We've been working with the one company that does the video exam. Uh we've been selling these for Over three years. And so we know it pretty well. We know who they're going to take and what they're going to take. And we've got a lot of experience with it.
But they're still doing that video exam. And they do ask some questions. Uh before we even send in the application.
So there are some illnesses. Like if you're in a wheelchair or you've got uh certain things I can't rattle off the list of them. We can't even send in an application to this company. But They're going to put you through a video exam, which is intimidating for some people. But, you know, we walk them through it and Um they're they're they're really just going to observe you and I think this company has made up their mind that A person's mobility and their gait when you get somebody up in their sixties and seventies Um That has more effect.
on whether they're going to need long-term care. than perhaps their health history does. Right. Um All that being said, We know the illnesses that we can put you into the one company with. And then all of a sudden...
Company number two, which is a much larger, more well-known insurance company. And I don't say the names of these companies on the air just 'cause I It saves me. uh dealing with them Um directly or sending this thing to them before we play it for you on the radio. Um But in any case. The company number two They don't do the video exam.
They've just got a questionnaire. And so you know, you look through the questionnaire and the first five questions are all the things like if you check to any of these in the first five questions, you can't send in an application.
So and incidentally on company number two, Parkinson's is one of the questions that if you check yes to Parkinson's, you can't send it in.
So If somebody calls us with Parkinson's, we don't even consider company number two. We just go with the one we've always gone with. Right. Then when you go through the list, You also We got a lot of people. I mean, somebody with MS, they just don't They're not too fancy on Somebody going and having somebody look them over from a distance in an insurance company.
and looking at their MS on a video. I mean, that's just intimidating to a lot of people. And rightly so. And so just the fact that there's no video. On Company number two, they're just going to take a statement of your health.
Uh aided by me.
So They have enough trust in us and trust in people that you know you you got to tell them the truth which you obviously We're going to do as Christians and so um So if you can make it through the first five questions. Um and they're all no. Do you get you you you're gonna you're gonna be able to get this policy issue. And so we've got some things. that are going to be a problem for company number one.
We've made a list of things. that now we're going to send them in with company number two and cancer is one of them.
Okay, is it that? people with cancer on company number one. There's certain kinds of cancer that you cannot get a policy with company number one. And then there's other kinds of cancer, you're going to get a smaller benefit. But on company number two, it's not anywhere in their questions cancer.
You don't even it's just not asked.
So we immediately know that somebody has a history of cancer. But they got it right now. We're going to company number two. Same thing to a degree with heart disease. Um where it's just something you tell them you have, but they're still going to issue the policy?
Um Another thing like somebody that's on Social Security disability.
Now I mean, company number one asked that in one of their screens.
So if you're on Social Security Disability, You can't buy company number one.
Okay, you you just can. I mean, because it's in their questions. Company number two doesn't ask that anywhere on the application.
So I just made a list and it's on the video. And I don't want to try to give you the whole list over the radio, but I'm just We know these things pretty well. And the fact now that we have a second company That we can compare the two and we can decide who you're going to have the best chance with. or the least hassle. or however you want to look at it.
Um You know, and company number two. They only do the cognitive screen. If you um are over seventy So now I've got somebody who's 73. maybe has cancer or had it recently. They can still get company number two.
But they got to do a cognitive screen, but they don't have to do it on a video. They're going to do it just on a computer. Where nobody's looking at them, you know?
So. Again, I We've gotten deep enough in the underwriting that if Yes. We don't have too many people just call us up and say, hey, I've got this illness. Can you sell me long-term care insurance? I mean, that's not the way it works.
A lot of times there are people that called us for financial planning. Or they called us with interest in long-term care, thinking they can buy one of those hybrid life long-term care policies. And then this kind of diseases Come up. in the question and answer process. And then we just steer them over to.
one of these Um So, and again, I just as I'm sitting here talking, I'm just I have You know, thank you to God just to the fact that we've got these two options for people with this whole list of diseases. Yeah, it's amazing. Absolutely. I know of so many friends that have had some type of bowel cancer. Um but to know that Again, they can have you know the thing I love about it is it's similar to a hybrid.
Um in that If you don't ever need the long-term care, you're you're not giving up the money. Correct. I mean, the money is going to sit there, it's going to grow. It's not going to grow as rapidly as if you had it invested in stocks. It's also not going to lose any money.
It's got the guarantee of an annuity, but it's going to grow pretty nicely. And every time The cash value in the annuity grows, the long-term care benefit grows by three times as much. I mean, that's it's it's it's one dollar for three, and that keeps going. is your money grows and grows and grows and grows. And then, as you said, when the person passes away, That whatever's left in this thing is going to go to the beneficiaries.
The initial deposit being tax-free to the beneficiaries and all that growth that you never paid taxes on. your beneficiaries are going to pay taxes on that. And as I was telling you before the break, if I can help your beneficiaries. stretch out the taxation on that. Two as well.
Let me throw a real curveball at you, but I like to do that. Mm.
So You know, it being annuity in an annuity, and I just picture this in my mind that there would be a lot of couples that would. do this, right? And it's it's something that a couple could do. It is. Company number two.
actually lets both people apply. under the same policy. But what I'm going to warn you about is. You know, l let's say couple number two. This couple, they bought company number two, on the double benefit and they put two hundred thousand in there.
And they're going to have that. 5,000 a month, excuse me, they're going to have 10,000 a month. of benefit For 60 months or 72 months actually. It's 72 months. They're going to have $10,000 a month of benefit.
And But that's only one of them has 72 months or they each have 36 months. I mean, so there's some flaws in that whole thing. Either one of them can use it. But they can't use it at the same time. and they can't use it over the collective maximum.
Right. But I would suppose that Um Which leads to another really good question. Um that, you know, let's say they both were in an assisted living facility. Uh that You know, each of them could be getting $2,500 a piece or whatever it may be of the care to go up against it.
So. But also is it it ha does it pay out like based on receipts or is it one of those like mine that you just once you qualify, they start sending you the benefit? It's an indemnity benefit.
So Once one of them qualifies. They're going to send you a check every month. Um for the benefit re no receipts.
Okay. Right, right. That's what I mean. I'm not ruling out the couples deal. I'm just telling you that there's some qualifiers on that.
But the answer is yes. And Generally the way it works out with couples. the way we're getting into this is Both of them applied for one of those Lifelong-term care hybrids. That we've talked so much about on the radio. And with most people, we're going to start there.
And then One of them got turned down. Or maybe one of them, we turned them down right from the beginning because we see that they got Parkinson's, or they'll never get this.
So what we end up doing with these people is the one that could qualify for the lifelong term care We're going to put some money toward that. Policy.
So then they got the life insurance too. And then we're going to carve out a place. For one of these things on the one that couldn't. But most people we talk to don't have unlimited money.
So And of course, as a couple, they're going to be worried about the one with the illness. More than the one that's healthy. Um So There's a place for what I j what you just brought up, which is putting all the money into one policy and then covering the couple. But the numbers play out differently. How about if I just tell you that, and I would need to explain it to you.
But the answer to your question is yes. that can be arranged. Yeah, and this is all the more reason to tell you right now that this show is brought to you by CardinalGuide.com. And if you go to CardinalGuide.com, you know, situations like this are custom-made for the Contact Tons or Tom page. Like, you have this situation, man, to have somebody who deeply cares about you and your family and wants to help you plan how to steward this final lap of your life.
CardinalGuide.com is how you get up with Hans or get up with Tom. Again, you can find all your resources under the long-term care tab there at cardinalguide.com and see the video on the same idea, show notes, all sorts of stuff with Tom as well on that. It's all there at cardinalguide.com. Not to mention Hans's book, The Complete Cardinal Guide to Planning for and Living in Retirement Workbook to go with that. Great show, Hans.
Great stuff. Thank you, and God bless you. Any comments regarding safe and secure products and guaranteed income streams refer only to fixed insurance products. They do not refer in any way to securities or investment advisory products. Fixed insurance and annuity product guarantees are subject to the claims paying ability of the issuing company and are not offered by Brookstone.
The opinions expressed by Hans Scheil and guests on this show are their own and do not reflect the opinions of this radio station. All statements and opinions expressed are based upon information considered reliable, although it should not be relied upon as such. Any statements or opinions are subject to change without notice. Investments involve risk and unless otherwise stated are not guaranteed. Past performance cannot be used as an indicator to determine future results.
Any strategies mentioned may not be suitable for everyone. Information expressed does not take into account your specific situation or objectives and is not intended as recommendations appropriate for you. Before acting on any information mentioned, please consult with a qualified tax or investment advisor to determine if it's suitable for your specific situation. Finishing well is designed to provide accurate and authoritative information with regard to the subject covered. Investment advisory services offered through Brookstrone Capital Management LLC, abbreviated BCM, a registered investment advisor.
BCM and Cardinal Advisors are independent of each other. Insurance products and services are not offered through BCM, but are offered and sold through individually licensed and appointed agents. Cardinal Advisors is not affiliated with or endorsed by the Social Security Administration or any other government agency. We hope you enjoyed Finishing Well, brought to you by CardinalGuide.com. Visit CardinalGuide.com for free downloads of this show or previous shows on topics such as Social Security, Medicare, IRAs, long-term care, life insurance, investments, and taxes, as well as Han's best-selling book, The Complete Cardinal Guide to Planning for and Living in Retirement and the Workbook.
Once again, for dozens of free resources, past shows, or to get Han's book, go to CardinalGuide.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 CardinalGuide.com. CardinalGuide.com.
