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March 27, 2021 8:30 am
People with bad pre-existing conditions are under the influence that they cannot get life insurance, and that’s just not true. Hans and Robby go over multiple life insurance policies that accept people with pretty severe pre-existing conditions.
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Enjoy it shirt but most of all, thank you for listening and choosing The Truth Podcast Network this is Truth Network welcome to finishing well brought to you by Cardinal guy, certified financial planner belonged Shiloh best-selling author and financial planners helping families finish well for over 40 years of 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. Finishing well. So welcome to finishing well is life insurance with pre-existing conditions, and so as I thought about that from a biblical standpoint we talked before about how we all have a pre-existing commission it's called sin.
How it started, was that unfortunately Eve didn't think she had me choices and Adam even got it worse that he didn't have any choices, and so we can say that one of the things that Satan loves to use on us is put you in a situation where you don't know what you don't know right that Eve didn't know she he try to convince her that God was holding out on her and so she wanted to get it that knowledge, but she didn't know what she did know about how to get like Ascot instead of Satan when the concept and then poor Adam.
Now that he's eaten he was in the situation of how easy this and I don't want to be alone. And so, again, rather than calling on God for the piece of information that you need. He was the prideful choice of well I'll fix this all go with her wherever it is that she was headed and off we go and got that we didn't reveal that figure, but with the thing is we have so many choices in life that we just don't know what we don't know. And so I love when when you do the video on this idea of life insurance with pre-existing conditions. You say Hans that a lot of the folks that is your discussing with them was the coming years. This clients they think they wouldn't qualify for any life insurance. Yeah, love and think they qualify for nothing, but they still get in touch with us and were meeting a lot of these people when there turning 65 and going on Medicare and the governments taking care of you on that respect is is that people with very serious pre-existing conditions can by any Medicare supplement policy that's on the market at the same prices as perfectly healthy people call open enrollment and what we've learned over the years is that many of these folks there really they think we start talking about life insurance Danville interruptus Michelle, I can't qualify for life insurance.
I've got no master. I've had a stroke or TIA arrived at heart bypass or got chronic obstructive pulmonary disease, COPD got cancer. I mean a whole list of things and then a lot of folks will throw in things that may seem major to them, but there really Minard's like high blood pressure so there's a lot of folks assuming that life insurance is not something you can buy in your 60s or your late 50s and you can't buy it, certainly with all the conditions is also to different levels of this you know but there are some that just seemed too good to be true yeah and so when I when I did this video in preparation meet Sue who were talking to hear first is the people that have something wrong with them something that they have bad sick there bad sick. Yeah, I used to have a salesperson work with me. Kind guy jelly. He used to describe homeboy. He's bad sick. You know he's an event in the bed for months, but for people that have no serious pre-existing condition. There just under the assumption they can get life insurance and that's just not true.
Now what I'm to talk about is that I have an example of a person in the video $25,000 of life insurance. A male at age 65, 240 bucks a month and like all that's a lot of money, but all of a sudden we were talking to somebody that has cancer and they're getting there under treatment right now and I don't really know where this is going to go or somebody that's had a stroke. People can be in a wheelchair, they can have their may be under Medicare disability mean they just got a whole set of circumstances that they don't have any life insurance for their life insurance through work is expiring, or is expired or they have term insurance that's ending. Once we point this out to people and we really walk into this that they're buying it as quick as they possibly can.
And a lot of them when we walked through the whole example. There saying, how does the insurance company do you know it's it's like what's the catch and you could call the catch is really the way the insurance company protects themselves is they can write this, life insurance and if the person that bought it dies within the first two years with they're going to do is there to return all the premiums out to the person because they're deceased.
But to the beneficiary all the premiums paid in +10%. So even that we've had some people buy these and then they passed away in the first two years and that few thousand dollars that was accumulated in this life insurance and then added the 10% is really helpful to a person that otherwise didn't have life insurance and then you make it to the 25th month. This policy pays off like any other life insurance right which in both cases know you didn't lose anything and you certainly gain you had something to go against the tragedy families, you know, in this moment and I remember really well you know when my dad passed away, and all the sudden and obese people have their hand out the people that I can process the body and always things are immediate expenses that wait for probate to happen well and then add to that when when a person dies within the family the family the people that are around that are left, they need money and they need quickly and bank accounts get locked up. So if you got money in the bank. I mean this is a spousal situation. It's not as tragic but it's even more tragic when there was no income to be lost is a lot of folks in this business where there writing life insurance on older folks and retiring people 65. A lot of them are going to sell $10,000 with the life insurance because it is presumed that that's enough to cover the funeral and what I must say is that $10,000 life insurance is certainly a lot better than zero.
But if you really want to pick a number and I have done my books in your pick a number 25,000 is really kind of a minimum number where you have $10,000 for the funeral and that leaves an additional $15,000 we can get talking about that in a different show but I start in all my discussions with the Obama start with a number of 25,000 and frankly we have a lot of people that once were on this and they find out they can get it they buy more.
They buy like 100 more and more people in their 60s buying $100,000 policy from and they're doing that. Perhaps not a this kind of policy there. Maybe they don't have the serious pre-existing conditions with a they've got something that they thought preclude life insurance and yet the life insurance companies, look at that is something that's insurable so we got a lot of options and a lot of policies but the reason people are buying $100,000. Is that you know like married people if they wanted the first one that passes they begin to Social Security checks whether both alive and when one of them dies one of those Social Security checks goes away. This is tragic to a lot of folks there on a pension and getting a pension than that pension is reduced for this surviving spouse. Many people don't have pensions anymore.
A lot of people live author Social Security and just a little more, so this is that this is this is another place that people are down by $100,000 of life insurance. We have allowed people and second marriages so they have kids there kids are from different different spouses okay when they hear yours, mine and ours and we talked about that on the show before, but with life insurance you can name whoever you want as a beneficiary in stock. I go through your estate. So perhaps you could leave part of the hundred thousand dollars to each kid that yours and then if you have step kids, so your spouse does you still look upon those children as your children see you can list all the children and maybe leave them each $10,000 of their five home and there's half of it, nearly the other half to the surviving spouse. This all gets settled in like a month when you bring the church in his blood. People want to leave money to their church. And when you do that in the will.
I mean certainly gets done but gets done much later and then people have something to say about it when you leave the church down as a partial beneficiary, the whole beneficiary that money just goes right to the church you and you know how beautiful that is that you actually can have an estate through this and in a really beautiful people have nieces and nephews or just somebody that was special with them.
I have one client who has a gentleman that stays in her house and rents a room, but he's been doing it for 10 years he's like in his 40s is a construction worker. He just happens to be from Mexico and she's she's a client and she is provided in her life insurance that some money is going to go directly to him as the beneficiary of the life insurance and our families certainly can have something to say about that when you know when the time comes, but they don't really have anything to say about it is going to be really private so you're able to choose somebody that you want to leave something to just name them as a beneficiary and you don't have to worry about the will being challenged or whether that person is going to get taken care of. It's just clear as day ripens is not a public thing goes out to this person left us to listen this statement now. That's all just wave it that you describe it so now we have wheat we talked about the most expensive enough of the people that were bad sick. As we talked about and then we got a couple of the tears that were gonna go into but we need to tell you again that all this information is covered in the Hansson's wonderful book the complete cardinal guide to planning for and living in retirement, which at the website.
Cardinal guide.com you can just email Hans and asked for the book get a download on this chapter, which is a life insurance And there's so many different things that when it comes to life insurance is absolutely beautiful and we come back again Cardinal guide.com will be right with life insurance and conditions. Hans and I would love to take our show on the road to your church and 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 higher rate Social Security care and long-term care. Just go to Cardinal guide.com and contact Tom to schedule a live recording of finishing well, your church, Sunday school or civic group.
Contact Tom to Cardinal guide.com that's Cardinal guide.com welcome back to finishing well certified financial planner Hans Schild today show. We are talking about life insurance with pre-existing conditions and if you missed the first half. The show, you can always go back get the podcast we talked about those that were bad sick in the first segments for those who probably thought there's no way insurance company well you know as often as the case Adam had options he didn't discover because he never asked God what to do with the other thing that always has driven me crazy is Adam you have a wonderful relationship with God when you just give it up before you jumped into this situation but fortunately for all of us. We have Hans to help us with the situation delete we feel like we don't have options for choices as you go into this stage of life. It's just a different if you reach the age of 6566 67. Even if you're continue to work like I do write it your entering into a new situation and these options and changes earth are things that you spent your whole life.
Learning about well I have been living through people dying without life insurance just examples of and then people dying with life insurance, talking to the beneficiaries delivering the money there contacting me because they were we have it on with the company and just live through the experience and so we we talked about one of the biggest objections that we get forward. People say I can't qualify for life insurance. We talked about that on the first of the show.
We got some 40, and many people say why don't need life insurance and they've been told this by a lot of consumer type of people are you because you kids are grown and you paid off the mortgage.
It's a lot of folks are.
Term insurance and then that term insurance is expiring and they just have worked on it. I don't need life insurance and you know what I meant to tell you is the Unocal yes you do.
I don't have a mortgage and my kids are grown by I really can't even imagine my wife trying to make it on just my Social Security at this point in time. Listen we find people in their 70s that were serving with Medicare were helping him with something financial and then I always talk about this and we find people that bought that and they just three much assume nobody really talked about they got no life insurance. You can buy this stuff all through 70.
It was some companies in your early 80s.
He gets a little pricey in your 70s but part of the thing and the prices that I really would like to highlight is this is a whole life policy. For those of you know so it's it's a little different in term policy where you're sending your money away and you will never see it again right but yeah I knew the whole life policy would just listen to the word whole life. It is going to be in force when you die. Even if you dine your 90s for over 100.
That's whole life and term life is in only be in force and it's only a payoff if you died during the term, so I don't want to get into the term versus whole term is wonderful for younger people when they got a large need that skin and like you know how you are my son just at a maybe my first grandchild and they don't really have a lot of assets together, it would be devastating if one of them were to pass away, and I I helped him by some pretty large term policies on both of now were not talking about that day were talking about people in their 60s were talking to people in their 70s that want to take a second look at this and were talking about people in their 50s that want to prepare for this business is less expensive if you're in your 50s, when it is intermittent and way less expensive and is whole life insurance. So what I want to do is talk about the other two options are. So we get three options in the 65-year-old male.
The ladies is less expensive for ladies 25,000 at age 65, 240 bucks a month. The second option is the same 25,234 bucks a month, several why wouldn't I buy that well you wouldn't buy that if you couldn't answer the health questions and if you got one of the serious things that we were talking about and are currently on chemotherapy yeah I mean you just eat. This is not an option. The hundred and $34 month.
But if your cancer was you went into remission over two years ago or three years ago. Then you can buy this kind of insurance is your TIA that you had was more than two years ago, you can buy this option if your bypass surgery was not in the last year, but it was more than a year ago. You can buy this option if your diabetes is not insulin-dependent and it is not.
If it is insulin-dependent. If you're not on if you're on less than 50 or 50 units or less a day. You can buy this option. So there's a whole bunch of gray area where people would think they have to buy the first policy that they can actually get underwritten on the second policy and courting the rate here just one company. We have about 15 different insurance companies that we use for this easy issue is what is called again.
Another big difference is this thing pays its full immediate benefit you by this policy, you dine three months. It pays the full $25,000 and something I neglected to mention back on the first policy is it'll pay off the 25,000 if you're killed in an accident if you had an accident that killed you, you would get your full benefit right away and that's true in all these policies so the only policy where there is limited benefits of the first two years is this first option which they obviously need to do when they're ensuring people with these serious illnesses so the second policy we have a lot of people who don't want to go through the physical don't feel like they can pass the physical or have tried to buy the least expensive type of insurance in a larger amount and they get turned down. We take these policies and we stack. We have several clients that we got in our $35,000 policy with one company of 50,000 with another company in a 25,000 with another company and were able to get them through underwriting with all three of them where they were turned down on the least expensive selfish we can get quite creative. This, and this guy thought he was ineligible for any and he really needed to buy this insurance in his 70s because his 20 year term had expired that he bought it. 55.
It expired at 75 is he retired at 55 he took his full pension without survivor benefits thinking that whatever he was thinking because it was cheap and now I sit here at 75 he's got number of health conditions looks upon himself is uninsurable and if he dies his wife gets nothing out of the pension. This calls for grandma had a big problem and so we what we did is we stack these second option policies and it was much more 934 bucks a month he's paying us like six, seven, 800 bucks a month and were talking to him now at 78 or 79 of buying more and his wife is like 10 years younger and this is a real problem for their family household budget and the second type of what is easy. Issue insurance is just a real problem solver for log. Then the third option which we ran through is like 80 bucks a month, or 85 bucks a month for the same 25,000 on the 65-year-old male with their gonna take you there and take me and you together through about three pages of health questions. It doesn't mean if you answer a number of them. Yes, that you can't get issued. It just means there to look you over from head to toe in their gonna send you a free physical so then you're going to have somebody come out calling you at your house. Are you going to their office there and draw your blood.
They're going to go through all the same questions that your height and weight and possibly write to your doctor and then it still doesn't mean if you don't pass that that you're going to get the client they may just rake you may just charge you more but issued the same policy and then pretty soon you're going be right back up option to allow people to skip that step.
When they got a number of things that I want to go through that now. As I mentioned earlier in the show. We have a lot of people buying $100,000 for the life insurance in their 60s or more and we have people buying substantially more but we have a lot of people that have settled on that number. We started with 25 and they're saying look my wife or my husband's ghosts suffer difficult situation in my absence, or I have this desire to leave things to my children or stepchildren or nieces and nephews or to the church or to pay off some loans in the event of my death. I mean I just I got a need and I want to buy more okay and then all we do is a little less than four times the price of $87 a month.
You know it's gonna be around 300 bucks a month and they're gonna get that hundred thousand dollars worth of insurance and keep in mind for ladies.
It's about 10% less women tend to live longer than men. And so the insurance company knows that and so they're in charge right in the again to me it's completely significant issue. This is whole life insurance that this money is gonna get paid out in other words, that 25 if you keep making your premiums.
They are going to pay out $25,000 or they are gonna pay out 100,000. If you bought that much insurance there's there's no way that this money is just going away it it it actually is. You can go to this is creating an immediate estate right and it's budgeted by the month, and is not can it go in the estate that have anything to do with the lawyers is paid by beneficiary. We just fill out a claim form and is paid the month and is a great time as always to talk about making sure that your beneficiaries are current and and mega more stories in every time you know one another, show immediate system and so I have a story work good buddy of mine.
This happened to his dad's second wife passed away in her ex-husband was the beneficiary of his life insurance that they paid for our knowledge years. So we went through that in this house anyway what you're saying is, his ex-wife got his life in Chinese and Ottoman hurt her ex-husband got the life insurance that he obviously paid all the premiums to our end of the day they had together and there is nothing around and be done. There's nothing it'd there's nothing to be done. But then I asked the magic question my body. I said did as you did change his beneficiary. Now she's good to cease nieces you know you got a good question. There is that I know it's a good question. That's why I asked man. I'm almost going to bet that if I don't intervene. He is possibly set up for the same situation later on and why you listeners out there. I'll be glad to do that for let's get the beneficiaries out. Let's look at them and see if they make sense now Nephi down it's very simple to change beneficiaries on electric such as life insurance policies to mom's IRAs. It's everything that has a beneficial 401(k). No things to think about and will and more reason that were glad that your less than the finishing well because that's a big huge part of it is that the eyes got a B.a teeth got to be crossed well and what needs to be said throughout this is when we get into the numbers we start know it gets kinda sterile.
The discussion and the other clients want to go there, my agents want to go there. Everybody wants to go start talking numbers and sheets. This is in so much about the numbers. This is about having an immediate explosion of money of the large amount of money that's coming exactly when it's needed is paid to the family and for people that want that we've got something for regardless of your health. You you you can you can apply for this you can find out. Again all about it. The complete cargo guide to planning for delivering in retirement book that has and is there a cardinal guide.com. As always man enough time for all the stuff we had thanked Thompson thank you. We hope you enjoyed finishing well brought you by cargo guide.com is a cardinal guide.com for free downloads of the show previous shows on topics such as Social Security, Medicare, IRAs, long-term care, life insurance and investments and taxes as well as cons 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 to get Hahn's book go to cardinal guide.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.
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