This broadcaster has 247 podcast archives available on-demand.
Keep up-to-date with this broadcaster on social media and their website.
February 29, 2020 8:30 am
A lot of people have a bias against life insurance, but as Hans says, you need to look at the actual facts. Hans and Robby go over term vs whole life insurance and the myths surrounding both of these. They also discuss hybrid long term care insurance and the living benefits that come with it. There are even living benefits to whole life insurance, if you utilize it right, that will provide tax-free income in retirement. Life insurance can be abused, but that is not a reason to be scared of it.
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 firstname.lastname@example.org or calling 919-535-8261. Learn more at CardinalGuide.com.
You're listening to the Truth Network and TruthNetwork.com.
Welcome to finishing well brought to you by Cardinal guy.com certified financial planner belonged to Schild, best-selling author and financial planner helping families finish well 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 with finishing well today. I'm finishing well. We have topics for life insurance mass hysteria and an watch that exist think with me for minute now. If you were in Jerusalem 2000 years ago Jesus came in and people hailed him as the Messiah and by the end of the week. Mass hysteria either diversify and what was behind the masses. Clearly, was an enemy who saw the weak minded and pointed them in directions that just are absolutely crazy so Hans and I been talked about life insurance before the show would then we can talk about this idea in you brought up a phenomenal thing about the coronavirus right like if you probably went out and surveyed 20 people and so what you think about the drug companies electing you in prescription drug prescription drug companies like work. You know what you count them as like below a car salesman lawyer went where were you where you put them in the hierarchy of things right, people would say their downright evil just person on the street many celebrations right but with the coronavirus asked this one should think about this with me for minute with that going on right this minute. Are we kinda glad that we have all these well very well paid.
You know, researchers that are working on creating some type of vaccine right they will find it will be invented here in America. Okay, most likely, maybe not, but most likely it will be here. We happen to have a lot of those people over in the Raleigh-Durham area research triangle Park, but you got them all over the place and you know the point I was making is people don't realize that we have all these wonder drugs and miracle drugs, and how did we get those visit. They were created through research and most research fails most of the times when they're trying to come up with new drugs. They just don't work in other testimony animals.
Whatever is they just have theory and then they don't work and then once they do find something that works again. All the side effects that they put on TV something having elicited a specific name and I don't want that. But then I got to go to the FDA and it is pretty easy then you look at what people are charging in Medicare part DM and there's reason for all the stuff that's in the news and if somebody really is in the business of hating drug companies or whatever. I mean, I'm in Salem. I have heard enough that I guess I could be there too, but I always want to go to the other side of things when there's hysteria swing so you know what was so what good are they, what are we still have mileages shutting down okay and insists you know if their charge and $700 a pill or treatment or something. What why is that one of the just make him lower it to $20 and you know the answer to that is that they've created something that saves people's lives and people really know that all these people so six or so where are we talking about drug companies today while the idea behind mass hysteria is obviously the best thing that ever came to the world cause mass hysteria in it is clearly did that of the people literally coat crucified him as as as a result of mass hysteria answer and so when you begin to see things in my fondest today me this morning I sent you an article by the Motley flute of fool talking about that you should run like the plague from a life insurance whole life insurance is the know and the same time I was thinking this is mass hysteria a minute just clearly there was nothing in that that led any sufficient reason why even answer that only the facts and tell me tell me what the facts were in the article to support the effects were high commissions, whatever that meant. I don't have any idea in the end, and that in a low, low return on investment. There was nothing there that just jumped out at me. That was like oh man yeah I need to run from this like the plague.
It was that you know that term insurance was the answer, but as I'm sitting there looking at the situation in my own life going. This is crazy because there is no term policy for 64-year-old man that is going to help me. You know if I need long-term care and the many things that a bit, really. I'm really looking forward to in my whole life insurance to go. This is really cool.
I never thought of being able to access some of the excised to be able to access some of the benefits of my own life insurance policy but those are some of things that you can now do within whole life insurance is just mean the IRS and the tax code and the tax policy section 101 a community just Google that he gives you the whole tax basis in tax advantage of life insurance that's been around since over hundred years.
It was in the teens around World War I that that was put in there it's remained intact mean life insurance just starting as a place to put money is a wonderful place for somebody that has a long horizon game is a long-term proposition. In fact, any time the IRS has rules on stuff and limits and stuff that usually tells me that it's something pretty good that a kid invested in it.
The IRS and the rules will not allow you to front end loader life insurance policy like you couldn't hand me $100,000. Today I pump it all in a life insurance policy. If you you could do that but then you would be taxed as soon as you would try to get it any that cash value later on.
So that would only be good for you and deaths of these limits and rules and so if you really get to do this properly is to buy a life insurance policy properly you need to spread the money and there really over. You know, 10 years of society. So if you wanted to get $100,000 into a life insurance policy you need to pay $10,000 a year for 10 years. But when you actually do that and you run the numbers, which I do all the time it's it's just phenomenal what you end up with me for starters you can give a gift a guaranteed return.
That might only be 3%.
But it's 3% that you can be guaranteed.
You could make more we can get into how that is. But, importantly, your active paying tax on that growth and if you withdraw that cash and you do that properly. Not all at once, not all of it and you do it in such a way that the policy doesn't lapse you can do that tax-free so you can have a tax-free savings account that you get up into overtime with a guaranteed return.
You can't lose any money on because it's all guaranteed by the insurance company and then to boot is you gonna die at some point if you die a real old age, it's still a good proposition. If you die at a young age or you die somewhere in between. This is been the best investment you remain in your life. So life insurance would be very easy to sell the people. If we didn't need to overcome these biases that people have in the biases or spread by people that make you anxious to know what they're talking about there just repeating what somebody else said as essentially mass hysteria because again you know Satan would like there to be lots of worry and he would love that. Like there to be lots of turmoil in and some of the things that that we talked about on the shown time and again that life insurance can put in place for a family to have. Essentially, an explosion of money or exactly when they need it for somebody to have long-term healthcare and still have no exposure if they were to never needed them. In those things that clearly are wonderful things for the family. They are not now. Certainly life insurance can be abused to be abused by the salespeople.
It can be sold in the wrong amount to the wrong person in the wrong financial situation as many times at whole life gets old people when they really need to buy term as they have a limited budget, or at least a perceived limited need like a young family on a very tight budget and the Psalm whole life they don't get enough insurance and so the you know I am not trying to explain them is lily white guy or a passive include me in the industry. I'm simply saying that these mass hysteria articles. Please just look to the opposites is the opposite. Your enemies can tell you that I've been fortunate enough to know a lot of very successful in people that have accumulated wealth and I'm sure many of you have ever some of you may have yourself or in apps can tell you that most wealthy people that I know affluent people. They own lots a life insurance and you know if it's so bad.
What they're not stupid and it went. But I'm also getting at is this article was true, why wouldn't people that have lots of life insurance whole life insurance where the cement now I know that my mom and drop it, call insurance, cancel that box or one of the state regulators even allowing this is just nuts yeah and the really scary part about it is what if somebody does let their policy lapse because then you really are fallen into the hands of Satan, so to speak, because that's where you really hurt yourself and your family and you really turning the insurance company into with their described they make the life insurance company to make more money off somebody that buys a policy pays for it for 15 years. They're not dead yet. And then they drop it and then they give them the whatever's cash values and there they never have to pay a death claim that that's real profitable venture for the insurance much more profitable than the guy that carries it for several decades and then dies and they pay office beneficiaries so I mean those people have never really been on the other end of the family that your hand and check most people start crying when I bring out know I would think I was thinking. So when we come back to talk a little bit about life insurance and retirement, and why some people use it as an accumulation vehicle and vehicle to pay less in taxes and that's also one of the seven hours tab. If you go to Cardinal guy.com to see that that's life insurance and estate planning. Right is one of those that you could get the download of Tom's book, the complete cardinal guide to planning for and living in retirement. You can order their website and on Amazon and get it Alfonso Cardinal guy.com so we'll be back in a minute with much more of life insurance and mass hysteria impending doom.
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 Hahn's expertise and qualified charitable contributions veterans aid and attendance IRA Social Security care and long-term care. Just go to Cardinal guy.com and contact Tom to schedule a live recording of finishing well at your church Christian or civic group. Contact Tom to Cardinal guy.com that's cardinal guide.com welcome back to finishing well, a certified financial planner Hans Schild today show is been on life insurance, mass hysteria, but he impending doom that we put back about the first segment and I guess the question really is Hans. Why would I want life insurance and retirement for a multitude of reasons.
First of all, it's can be in the alternative asset for you for wanting to put your money in different things in different places with different institutions, a life insurance policy is a good place to start.
That is if you have enough money that were gonna be putting it in different places.
You need a long time horizon if you're going to be putting it there for the cash value say I think the main reason though, that you want life insurance is that somebody is going to suffer a financial loss at your death now for you and I that's easy.
Assuming we go before why go before my wife a life insurance payment is can be made to her.
So for those of you that are married out there. Whether it's the husband or the wife because first, the survivor is going to need some additional money wise that with a Social Security check.
One of them is going to go away. You got final expenses at your retirement. Many of you manager death. That's a real retirement. It's funny thanks for correcting me at your death by me and me just many of you have not shared with your children, your whole financial situation is just mean that I know a lot of people say what you talk about I call on you; people in most of this year, little something that a lot of folks just have your kids are going in here at some level of a mess when you die, especially if you die suddenly because most people with their dying slowly or they have some illness and start to get their affairs in order, but when somebody just passes away quickly.
There's a mess and I just any death. There's a need for money to pay for funeral. I got all this in my book, you get a pay for just to keep up the house.
You still gonna make the mortgage payment for the rent payment for them and they just don't come walk the place up. The next week to go pick up our ability to pay somebody to mow the yard yet. I have had any value that all my dentist you think well and cost a few bucks to put the announcement in the newspaper all think again.
The newspapers know what a racket that is an enough for one city for my dad was like $450 some crazy amount of money just to to make the death announcement the newspaper it's it's it's expensive.
The attorney fees even for just a small state, and you gotta go to an attorney if you have a set things up properly so it is really nice to take an amount of like $25,000 of life insurance and name when your children or name your spouse is your married and then put the child as a contingent beneficiary and then tell him this money is to take care of matters when I die very quickly like my funeral. That kind of thing we can even have part of that sent straight to the funeral home.
If you want to get down to that level and I could go on and on. When you're asking me like why would I want life insurance. When I retired create all kinds of reasons, you may hear. We have lots of clients out there that are on their second marriage and so they have children who are not the children of their current spouse and then that's about their spouse may have children from their first marriage and most of the clients I deal with are not wealthy enough when the first one of them dies that they can leave money to their kids.
Most of them have to leave all the money to the spouse because they don't have enough to start passing it out of the first death and so a small life insurance policy shifted to give your kids an amount so that they get a check to get some sort of inheritance from you is wonderful. You may want to leave it to your church midnight I could just go on and on and on, were life insurance. I never have beneficiaries asking many questions. They just was. His term was his whole life insurance.
How old was the policy. How much did dad pay for this. Nothing. They just start crying and they say thank you and I'm telling you to have one of your children leave your funeral or the whole get together of the family and to leave their knowing they're going to get a small check for something is is is the nice thing to do and so we resolve that second note, we have other people that are on their second marriage and they go the other way that they've gone to great pains to leave all their stuff to their kids so that the stepmother doesn't get it or the stepmother is leaving it to her kids so that her new husband doesn't get anything people I have run into that a lot set up his people to get married when they're older and their kids are older they go to great pains to make sure it does.
Everybody doesn't think the other ones Marion for the money but they forget about their new spouse with her and loveless within their there's life insurance.
That's a time we can use term because after 10 years that'll be all better coming or 20 years or some of her maybe, but it just so people that have things set up the other way.
Then we get some life insurance were we mutually by leave each other as the beneficiary.
Yeah. And then there's all the hybrids owe sure to me when you talk about long-term care so one of the biggest objections to people that are trying to get logical about long-term care or long-term care insurance is a just just decide it's not worth the money is too expensive. I may pay into this for years and then never collect anything out of it and so that's all true. There's another form that I personally own is called a hybrid life insurance or life insurance/long-term care hybrids putting two things together and this was really made possible by the pension protection act in 2008 so this is this type of policy is really only about 12 years old. That didn't come out with any until 2010 and with this simply does your buying a life insurance policy is just like any other life insurance policy when you die is gonna pay the face amount to whoever you have names the beneficiary, but the living benefit on it is you can access the death benefit while you're still alive to pay for either home healthcare pay for an assisted living or nursing.
You can even buy extension writer so she purchases the $250,000 life insurance policy you blow through all that, then you can buy a long-term care extension writer that is keep paying for long-term care if you used up all the lectures and there's all kinds of ways to use life insurance to fund long-term care and was really nice for the naysayers is if you don't ever use it.
Then the life insurance benefits can go euros that I like that really that reasoning a lot that you know if truck come by and take me out united, then it really pays off visiting our my statement by the same token it. It protects my family in another way. You know if if I get to the point where I can't function that I am one of the neat things is actually it's good for your spouse to this event was one of the things that I guess God gave me the insight to buy a policy for my wife 20 years ago and now I don't know what it was but it was like oh my goodness.
And and and I never thought of what that would actually do for Tammy self-esteem to know that she had that kind of coverage on her own life and even though it's not a hybrid or nothing fancy but universal life policy it. It means a lot to her self-esteem. To know that my life is worth is just amazing to me. I been in the life insurance business 43 years. You just bought some life insurance for me is 64 years old and you got a few health conditions and if you still still a good bargain, but 43 years ago when we'd sit down with the guy. The 64 years old and that life insurance was not a good deal. It was for the times. It was a good deal would sell it to people.
But what we've got now is that people you have a long life expectancy minutes is the insurance companies are able to offer a lot of benefits and you know if you want to load this thing up with cash value accumulation. It wasn't really the goal with yours. But we could have had you pin 2 to 3 times as much for exactly the same thing but is not exactly the same via loaded up savings account that it works like a Roth IRA dentist you know there's a bucket of money that you always talk about would like buckets of money and I like that idea of a bucket of money and essentially whole life is another kind of bucket and for tax reasons we pull from different buckets at different times to smooth out even out incomes and really choose the amount of tax would obey.
That's what I like. That's that's really the purpose behind all these different buckets is tax reasons.
And then the guarantees and some buckets. It really allows us over time to just pull from different areas and deposited different areas and is for tax reasons. One of the joys of this discussion for me to say Hans is that God's given us enough sense of well mass hysteria led to the crucifixion of Christ may just did and that when all of a sudden I see a bunch of people running to do something that looks like they're accusing him and that kinda stuff to sit back and go. What really is the motivation that's going on here in an and what really might God be doing with that I can step in and help it. It's it's a beautiful thing that God gave you a mind gave us all a mind to determine wow is there somebody working on something for the coronavirus right this very second. And yeah, they deserve to be paid really well for conservative save thousands life and in in in is that a pretty good thing to know that God's got somebody to be up tonight trying to work that out for us and in the there's people like that in all sorts of industries in the investors adjacent money.
You may think they're trying to save the world with the investors in those drug vaccines there investing in something. It's highly risky. They're doing it to make money now, the researchers might not be doing it just to make money. They could really be doing it to save the world and save illnesses and help people. But somewhere in the line somebody's doing it out of some level of greed and that's just the way our society works in digits to hold them up and say they're evil in the scheme of things just don't think it helps any. We need of invest money in seeing fish you want to know more.
We obviously will hope that you would go to Cardinal guy, don't forget to guide after card.com check out Hans's book the complete gargle guide to planning for and living in retirement which course has the seven worries tablet were hoping that you don't worry so you finish well. One of those being life insurance and investments.
Thank you so much Hans is. 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 and life insurance, investments and taxes as well as constant best-selling book, the complete Cardinal guy to planning for and living in retirement and the workbook once again for dozens of free resources past shows what you 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