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Beginning with the End in Mind: Life Insurance

Finishing Well / Hans Scheil
The Truth Network Radio
July 3, 2021 8:30 am

Beginning with the End in Mind: Life Insurance

Finishing Well / Hans Scheil

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July 3, 2021 8:30 am

Begin with the end in mind. Hans and Robby go over the difficult, but necessary topic of life insurance for retirees. 

 

Don’t forget to get your copy of “The Complete Cardinal Guide to Planning for and Living in Retirement” on Amazon or on CardinalGuide.com for free!

 

You can contact Hans and Cardinal by emailing hans@cardinalguide.com or calling 919-535-8261. Learn more at CardinalGuide.com. 

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So enjoy it share but most of all, thank you for listening to The Truth Podcast Network this is Truth Network welcome to finishing well brought to you by Cardinal guy, certified financial planner on the child. Best-selling author and financial planner helping families finish well for over 40 years on 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, finishing well is a general discussion and education issues facing retirees guide.com are no advisors upon trial CFP insurance this show does not offer investment products or investment advice welcome to finishing well in today's show might grab you so you know the title of it.

Think about it might grab, he grabbed me and I had couldn't stop laughing for a few minutes, life insurance, beginning with the end in mind and there's really wisdom to this you know is as we begin to think about this on, you know, my initial response to that comment because I'd seen it in your video that you done on YouTube now on $40,000 with life insurance. You need to begin with the end mine and I thought wait a minute the end I'm dead. This can't be good at and then interestingly and just to be completely transparent. God was telling me as we began to prepare for the show. Robert wants to talk about what Pastor Jackson what Bishop Jackson for Charlotte had said yesterday which is therebetween hot water in boiling water is only 1 which you know that's 211 is hot water but 212 you got something completely different that you're dealing with course if you did, whether that meant that that reminded us both of somebody that we dearly loved and in their last moments they were boiling. Oh yes, one of my clients that's in my book, Dr. Bob he was just, you know you in many ways he brought me to Christ and he just visit just great follower and the sky was a dentist retired dentist just an interesting guy.

Let a very interesting life. You struggle with addiction the same as me.

You know younger and alcohol I guess is much you can overcome that.

That's where he met God.

That's where I met God's is true that and he was sitting there eating lunch with me and he's 80 years old, six weeks before he died and he was just buying insurance know at this point and I just sold him insurance is delivering the policy they always want to go to lunch always insisted on paying for and then I made some very large commissions off of all the business he did with me in estate planning and life insurance. And then I donated a piece of those commissions to his charities which will get Bibles into China misses the neat guy and he was always out of the driveway.

His wife was of a different faith is still Christian, but just that they had different ways of looking at things is to say that when they were his evangelicals.

He was she's out of the driveway given me the address of this, send an Bibles missions China kind of thing slip him a piece of paper with just before he passed away that this lunch, like six weeks before he passed away.

He is literally bouncing on the chair. I'm going to see Jesus and I was a little bit. I knew what he was saying and many resist.

He was just kind of full of the joy he knows is going die and she was looking at him like what's wrong with you or whatever and it was received. He was just bouncing in Folger do matter to him at all. Say he was seen signing his life. He was beginning with the end in mind that I i.e. you know it. It just it.

That was the end in mind and embed fascinatingly for me in a course will get more into the particulars I had a friend of his name was Lester Kent Cranfield it was a truck driver adjusted just the unbelievable man was in our Christian business men's committee and marks and I can see them in my minds eye at any time and he was just a big kid. I me know whenever you talk to me just like a big kid at and every time I ever saw the man every single time I ever saw the man he told me Robbie unpaid upright up, packed up and ready to go earlier in it and what he meant was he was paid at Pradip packed up and ready go see Jesus wealth. He died of a heart attack and while he was having this hardtack. His wife called me and said, look, Junior is on his way to the hospital. Would you please go be with them as a funeral because I can't get to the hospital right now. Can you please go make sure that somebody is therefore less trees fix to go on emergency surgeries to set architect so this is the heart attack that literally would take Lester's life and from what I understand, artifacts are quite painful and this man was in his 80s that was his son gets there and I get there and we they are literally rolling like Lester is on the gurney. He strapped down as he's coming behind me. He looks up at me with a smile that only Lester can still have and says to me Robbie pump right up, packed up and I'm ready to go and I just never ever have forgotten that that that man which was, he was boiling right heat. He was a little bit excited about dying heat.

He was beginning with the end in mind. But when it comes to this. You know the thing it if it is we are talking about it is that when when that day comes for me.

You know other people be sitting around saying no G Robbie was Pradip packed up and ready to go and he was excited to see Jesus or they can be gone man. I mean how we can pay for this funeral or some of the other stuff because that that's kind of where life insurance Co. will yeah and I want to qualify this business where I was when I made this YouTube video I was just teaching so my young folks that are redoing the recording and all I can stop teaching them about Covey's seven habits that Stephen Covey's seven habits of highly effective people and one of those begin with the end in mind and I was drying them a picture of how that's how I sell life insurance. I don't really pretty much tell that to people but if you're going to influence somebody to buy life insurance which makes you a bigger person and it's it's it's it's it's a difficult thing to do because you're preparing for your family by it because you love your family and so we gotta have a little discussion are going to start with a little discussion about what you want things look like that in just a minute take you there.

You going to go there with me yet.

I've done that for 45 years sell insurance is the same thing with long-term care insurance unless we can unless we can come and get there and you can accept that this might happen to you and then you might need this and I can't hear that I want to skip the life insurance. It is, is that we we we got have a need or desire for this thing and the people really need to understand with this is for at least from my perspective before we get into the numbers and the amounts and premiums because we didn't get drone on about that stuff forever.

So today show is really about life insurance for seniors life insurance for retirees. People I mean the rates that were using as an example, are for a 68-year-old person male or female, and I use that because most of our client base. Most of our people listening to the show are somewhere in the 60s.

Maybe in the 50s, many of you in the 70s and were talking about things that maybe you skip. I hear some so want to come up with a rate that was ratable and I want to give a whole bunch rates but the rates aren't even really the whole point is is that if your retiree I I'd like you to check in on your life insurance and when people come to me. I have a lot of people that say we don't have life insurance. You know, we don't want. We don't need it. We got plenty of money sitting here and she's gonna be fine or he's gonna be fine work. My kids don't need to have some left of people have a lot of quick answers to justify.

We'll have life insurance and I'm not custody or talking on now to tell you you read a lot in the media is you don't need life insurance for you. You needed when you were young and you have a mortgage and you had kids that are in school and you know if you are all the son to die there to be an awful way in the orphans and you know they they need a pot of money to replace your income bottle. A lot. Most people of incompletes with her.

They have group insurance or they have term insurance but the whole concept of like why do I need life insurance when I'm retired and I will tell you exactly why because when a person passes away. I don't care if that's at 7585 or 95 or even older the survivors of the family.

This need money and they need it right away, capping out situations that certainly are on their that the beauty of life insurance is not involved in the states or comes right away. It comes tax free and you there's gonna be some kind of expenses coming and then there's gonna be losses of income.

If you married couple first one passes away, the survivor gets the larger of the two checks. The smaller one goes away. Pensions are reduced expenses don't go down at least over the short term, and so there's a need for a hunk of money so that there's funeral costs. You have no idea what that stuff costs money that you have separately nice. If you're married couple and you have a joint account that doesn't get locked down then if you went to the last one to die. So if you're the second one and the couple so you're the widow or widower in the new pass away your family now will all the Social Security checks go away and then think that somebody's got to maintain your house and like what you just described, because her experiences from my father, is that Social Security themselves locked up your checking account. If it's been getting direct deposits from Social Security so if you're didn't deposits right now from Sanskrit directly into your checking account well and you pass away.

They know that even pathway on the day of the month that that that that you know you are entitled to all that money so they lock up your account until they can straighten out the deal and you go use their credit card after their deceased year. That's not good guy on I know people do it so there's a need we could we could talk all afternoon. All you gotta do is go talk to somebody this is that a loss in their family. In the last six month talk to him about the experience and then just talk to him about whether they live on Hanlon or their brother was her yet others that there's a need for money and then there's a need for money for the next year for a lot of things and sometimes there's family members that just don't have the money to make the trip. Summers go send them money, so it seemed like A pretty interesting topic life insurance begin with the end of my that my tickets and that's what were talking about today on finishing well and be back in just a minute, but we want to remind you always and always information. Is it nonsense website. Cardinal died.com as well as his guide to planning for living in the video the video that was on life is all there.

Cardinal died.com] 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 Hahn's expertise and qualified charitable contributions veterans aid and attendance and IRA Social Security care and long-term care. Just go to Cardinal died.com and contact Tom to schedule a live recording of finishing well your church, civic group contact time to Cardinal died.com that's Cardinal died.com welcome back Ellison financial planner Hans Schild today show life insurance, beginning with the end in mind and we Artie talked about on the be dead and I want to be with Jesus and then that's the thing to be good but the end in mind is actually you know that there's going to be a sum of money that's available to meet a particular need.

That's been determined through some planning but and and what's affordable to meet that need, because obviously you got all those issues and so organ again those nuts and bolts now well yeah and so the example that I put in the YouTube video that is been popular is is the $40,000 of life insurance example and I did that because I've got two different flavors of retiree life insurance one is what's called a guaranteed universal life policy which you get the full physical about a three page application when they were on paper asking about every body part that you can imagine.

Still doesn't take about 10 minutes to fill out your check and most of it now and then you get a complementary paramedical exam. So there to check it out completely underwrite. That doesn't mean you need to be in perfect health. You know, if you just never hung out with me. You can see that I'm not in perfect health and I've passed many of those things that type of insurance when you're buying a larger amount, especially if you can about hundred thousand 200,000 300,000 is the way to go and you can make it through a physical just fine now. The second type that I've got here is was called final expense insurance and I've got one of the most price competitive ones and you still have to answer some questions, but is going to be more like three minutes.

You can check them all know and there's some pretty major stuff on there and you check them all know and be issued they'll issue the policy sometimes 10 or 15 minutes later, no physical know nothing so it's a convenience to this is kind of the don't ask don't tell me in his fist as long as you can answer their questions and they've got to get stuff like congestive heart failure and cancer in the last two years that Thing. It's designed to be a yes no application so the other examples I've got is for the first kind for a 68-year-old man at standard rates hundred $90.13 a month for $40,000 with life insurance.

That was the one with has downright had to pass all the tests all the stuff and handle event that one is the universal. That's the universal life and so that premium hundred and 90 $1390.13 is can be the same at age 68, as it is. At age hundred and eight. Absolutely it's a guaranteed premium during writing to the policy will be no premium is that this is not term insurance is not determined. In other words, it's not to run out.

Once your 85 or whatever this this is going to you on as long as you live as long as you make the premiums than it's gonna pay out the death benefit of $40,000 right in the whole idea here is, is that the policies in force when you die. That's what they call a whole life right it would be term insurance. If the premium was only good for 20 years and then the 21st year. The premium went to like 2000 month or something or it was just over with.

Okay this is permanent. Whole life insurance with a guaranteed. Is it not that hard to pass it so I don't want to scare bunch people off from this if you got some conditions as long as they're well well-controlled. You know, and they have been serious things that have happened in the last year to and for a lady hundred and $44.56 a month for the same thing so you can see with the life insurance companies thinking about a 68-year-old man in the 68 are a woman standing next to each other. She's got a much better chance of living a longer than he does hundred, $1990.13 for man hundred 44's 56 for a woman and then if you go down to the final expense insurance is current easy issue.

This is easy issue. File expense is still a whole extent. Other words, if you make these premiums same thing, but this has a little bit more cash value than the other one is so so even though they're charging you more. It's going to build up a cash value inside but most people don't cash in their final expense policies because they are buying them when their 68 in their binder to keep it and have enforcement or deceased, but for the man at 40,000's age 68. This is 257 bucks a month so he's paying another 67 a month just for the luxury of getting an easy issue policy and now once I give you those numbers you might want to do the thing where you answer the questions but there's a whole lot of people that can get this $257 policy that really can't get the hundred $90 policy because the questions are pretty easy and over on the female side, the same 40,000 is 183 bucks a month. Housekeeper them other policy for man, you just it just is guaranteed premium easy questions know the height and weight is much more liberal on this thing.

Although both of them are pretty easy I could qualify for both of them. Even a mile away have been on a diet. Lately, I've lost a lot of weight.

But even at my old weight I could qualify for either one of these.

And that was just a little over 300 pounds now. So what I pick 40,000 will 40,000 is a significant life insurance policy and is also is the top end of the final expense easy issue insurance, but we've got this stuff easy issue stuff from about 10 different companies. So when people want to get that kind of insurance they want to get more than 40,000 want to get like 100,000 we just stack policies were just doing 40 with one company. 40 with another company in 20 with another. So we is pretty easy to do. Answer all the questions they got all issues in a couple of days and what I find is once we get people into this thing and they really understand that you can make a bequest more than just given the money the family money to pay for funeral or to pay your bills or that kind of thing people start seeing this is you, you can put your church down is is a beneficiary of 10,000 or 20,000 or 30,000 if you didn't want your whole family. Seeing how much money you gave to the church for whatever reason, you can have a Nice specialty and you don't want to give all your nieces and nephews money and you also don't want your children and grandchildren looking at what you give money to the knees. You can make the niece of beneficiary, life insurance numbers, criminal justice, and scummy tax-free. There's no taxes due.

No income taxes due. There's so many benefits to this of using it for a bequest. We have a lot of people that once they understand this and they see the prices they're going to go through the underwriting they buy 100,000 200,000 and maybe they pay the premiums by the year and and we talked about the previous show.

With so many mixed families right there there's children that are by that other spouse and the other things to make sure that you've got something so that they feel like they were those of the people to buy 100,000 or 200,000 because if they got deals guaranteeing that their kids get stuff made of the prior marriage so so there's already in their will or does that leave their spouse or their current spouses of the second marriage they make them the beneficiary of the larger life insurance or vice versa. They make the spouse the beneficiary of all their stuff and then they use the life insurance to pay off the kids from the prior marriage or their kids so using this idea beginning in the end in mind in knowing a little bit of how you think when we just throw his father so let's just say that it that that that my father had understood this at his age 82 or whatever and he could have taken his IRA money right right that my siblings ended up having to pay taxes on heat, he could have taken the money out his income would not of affected his income that much because he only was just on so security at that point in time right absolutely you can still buy the stuff in your 80s is can be much more expensive but still its relatives the full 10 grand a year out of the IRA.

Pay the taxes of 20,000 or 25,000, you're left with the 7500 after-tax income destroyed still alive uses the pays that to buy a life insurance policy that maybe has a 10 year premium on so we can make this stuff a 10 year vanishing premium but so the is making those withdrawals every year and down the taxes and then they ultimately get some of the beneficiaries from my siblings would've gotten this money with no tax yet and they went on in a much quicker to all who would've known what to do because it be cash, it would be securities in one third of an IRA. All I can stuff when we talk about finishing well and you've got IRA monies out there and that's the idea behind the irony is I want this to be money that I give to my kids. Really, it's to sleep as this is a great system system to you know use wisdom to get the money that's tax-free.

I mean if the 68-year-old dude wanted by hundred thousand. All I gotta do is take hundred 90 tends to lend the financial plants about fiber books, that's 100,000. He wanted by hundred thousand dollar policy out of his IRA. You want to pay 500 bucks a month you need to draw out about 750 bucks a month 780s 800 tax maybe 600 is taxes are low and paid every year and when he dies his beneficiaries get 100 grand tax-free and not to mention that goes towards his right district minimum distribution. What's that word RMD is absolutely required minimum distribution and use it for something here you go you great life insurance that that is going to take care of. We even have plans with the life insurance companies that are set to take care of the taxes and their added that they'll be planned around your minimum distributions, or we start with that is the premium pull it out of the IRA. Pay the tax net a certain amount.

Then we see him was life insurance at Bosch Selye and then it just goes on into the future depleting the IRA and then when you pass away. There's life insurance.

Is there some left in the IRA they get that do so. Actually, you know, as I think back to Dr. Bob and you know it was a man that he was jumping up and down does he want to see Jesus front, but but what he said he's going to see Janice is that he wants to see Geddes as he ascends going to CJ's which is great, but I will enjoy and that's why when I heard he died just heard about it on a bus. When I was going from the airport to a meeting he had you at first I was just grief struck. Shocked and then I just just talk about this this this is I knew where he was and I just knew how happy he was now and he had done all this kind of thing right in 06, eight, 10 weeks, got in. I was on site you can help it miss that God put this on his heart right to give all of that was for his wife and his sons all the plan is still in place, there still paying the premiums and it's really not in a payoff until she dies and is going pay the sums tax-free and all the stuff was in place, or if she goes in a nursing home or assisted living or gets home healthcare that's going to pay often just huge amounts of money so out and out that's the main thing. God is can provide wisdom when we need it in and he provided Hans for you to listen to this radio show today and for me. Again, this shows brought by Cardinal guide.com where you can find Hans's book the complete cargo guide to planning for and living in retirement as well as you know the seven release tabs that go into all these different areas.

The videos that we talked about on the earth so many times it's all there@cardinalguide.com thanks again, thank you finishing well is a general discussion and education of the issues facing retirees Cardinal guide.com Cardinal advisors and Hans Schild, CFP some insurance this show does not offer investment products or investment advice. We hope you enjoyed finishing well brought you by Cardinal guide.com visit Cardinal.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 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 Hans will go to Cardinal.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 guide.com Cardinal guide.com this is the Truth Network


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