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Loving Your Household Through Long Term Care Planning

Finishing Well / Hans Scheil
The Truth Network Radio
October 26, 2019 8:30 am

Loving Your Household Through Long Term Care Planning

Finishing Well / Hans Scheil

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October 26, 2019 8:30 am

If you look up the word “Love” and “Father” in Hebrew you’ll notice the Hebrew symbol for “household” in the middle of each. This week, Hans and Robby talk about the love and stewardship behind long-term care for the sake of your household.


Robby talks about a woman who told him about her mother’s declining health. Originally, she was going to have to take off work to take care of her mother. A few months ago, she was able to hire someone to help take care of her mother and it was a game-changer. She said she was able to have a healthy relationship with her mom again and both of their situations were so much better. 70% of couples over 65 will need some sort of long-term care option. Robby says if his friend’s mother had known the sacrifices that would be made to take care of her, she likely would’ve been interested in a long-term care policy before her health worsened.


This woman ended up using a short-term care policy she had bought a few years ago. The policy cost a little over $100 a month and resulted in her receiving $700/week to cover her daughter’s expenses and 52 weeks of care.


Robby talks about how many people fall and hurt themselves, including his relatives, as they get older. When this happens, they need significant time to heal. Medicare only pays for rehab a certain number of days which has put many of Robby’s friends in bad financial situations. Hans says 90% of people are without long-term care options and don’t realize they need it until it’s too late. Recently, he helped a couple use IRA money to offset expensive ALS care cost and also helped them purchase a life insurance policy for after he dies. Hans reassures listeners that if you’re in poor health and without long-term care insurance, there are other ways he can help.


Hans says most people buy long-term care insurance because they love their family and don’t want the burden of care to fall on their loved ones. Long-term care insurance can cover the expenses of a caretaker, and custodial care such as bathing, feeding, and dressing. This allows you to be there for the important part: your family’s emotional needs. Additionally, it releases your children for the guilt and shame many feel for not being able to adequately provide care for their parents by themselves.


Up next, Hans addresses some resources you can use to start tackling long-term care decisions. Hans wrote a workbook to put facts and figures in front of the reader and walk you through illustrations to demonstrate 10 or 12 policy options. These policies can cover everything from home health care and institutional care to providing indemnities (i.e. sending weekly checks to cover care needs, no receipts required). By meeting certain basic care or cognitive imperative conditions, you will qualify for your care benefits and simply receive the money to assist with care options. Hans wants listeners to know that they can get his book explaining these options a lot of different ways; by sending him an email, downloading the chapters from, or buying them from Amazon.


Hans then talks about hybrid policies, which are the merging of life insurance and long-term care options. These appeals to people who are afraid that they will pay into a long-term care policy and then die before receiving any money. Hybrid policies allow people to receive a tax-free death benefit early while still alive. Additionally, if never use your policy then your heirs will get the money you put in when you die. If you do use your long-term care options, then you can draw money from your hybrid policy for 4 years and your heirs will still get a small amount of money when you die. There are various ways to buy hybrids with single premiums and you can always customize them to meet your financial needs.


Robby quotes his old boss, saying: “If you think education is expensive, try ignorance.” Hans says this is relevant to the long-term care discussion because even though the insurance seems expensive to many now, it’s far cheaper than covering huge care expenses later on without insurance. Hans says insurance options can be purchased affordably by utilizing IRAs or moving similar assets around to help supplement costs. Long-term care is just a piece of a compressive retirement and financial plan, but to Hans, it’s the service he takes the most pride in because it helps his clients protect their families.


Learn more at or call 919-535-8261. Hans can be reached at

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You're listening to the Truth Network and Welcome to finishing well brought to you by Cardinal guy 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 welcome to finishing well with five financial planner on Schild today is loving your family and loving your household actually through long-term care planning. That's a mouthful, but the idea is that Ed and I would challenge anybody to take your concordance if you have one home Strong's concordance or look online and look up the word love in Hebrew and note the similarities between the word love and the word father and you know I have been looking at that lately and it just boggles my mind actually harms that that the wheat we have this concept of the good good father, but right there within that word in Hebrew. Both love and father have a very significant issue of yes you got the whole God picture but then there's this word house and household at and when I think about how you know our heavenly father is provided for us in so many different ways. Part of being a good good father is or good good mother is the case may be, is structuring your household in a way that is loving your family well and so dish to share story. I have on the radio show that we do down in Charlotte called clear competent and the lady that does that show in June called me and said Robbie don't have time to do my show for a few months because I'm taking care my mother and she's got this. You know it look like she's can pass away and it was really it was difficult situation and we are praying with her constantly and Connor and it went on and on and you could tell versus really wearing her down and every time I talked to her she would just seem like wow and I was live reliving the story with my father actually that she was really struggling and just last week, it might've been Monday. Actually this week when I talked to her. She called in and she said Robbie we've had a huge breakthrough, we have found a lady to take care of my mother always just change my world is like now rather than having to do this that the other and I just to get to go visit her and and I have a relationship with my mother again insists I can't begin to tell you how much better this is in the way the way that it was at and when I thought about that couldn't help but think about our shows and how many people in right planning for long-term care realized that when you say on cyclic when you really get into it like 90% of people's lives as they come in and finish is is going to involve some home health care if they're lucky at right or some of its smallest system that is but it do you know they say like 70% of couples were to spend time in a you know in a long term care facility or they're going to spend some time there, but statistics are not really the issue with this stuff. Any so I don't want to be the one hanging up on a lot of people are going to need this and who's going to be most affected is the family consists like this woman in Charlotte and she is your mother and she loves her mother going up put her life on hold in a radio show on hold to go care for her mother and if her mother really kinda knew that situation. 30 years ago when she was planning out for her to finish well.

She probably would have been perhaps more interested in getting a long-term care policy released Wooding down the short term care policy or putting something down simple and the daughter herself and she's with her mother would have been inquiring if she knew that she knew how was really going to work and again at would not have known this had I not done the show but I can I get you within the last two weeks I've had three or four conversations with individuals that are taking care of their parents or in the process of trying to figure that out is is that at they are in some type of a you know rehab situation. They just fallen. It's very, very common some returns they they fall. Now they gotta go to rehab and rehab and there like Robbie did you know that Medicare only pays this view. Note the only leave them in here for so many days and if they're not making progress note.

Medicare is independent so what are we gonna do you know when they find themselves in that situation and and I'm really thinking that two years ago I had no clue myself. So I think it's it's it's a lot of ignorance on this idea that Medicare does not pay it if if you're not recovering at a certain rate in the end, and some is good have to be done and were talking about custodial carriers overcomes the mind is a client that I just found out yesterday. A final diagnosis of client of mine who through his wife that he has ALS Lou Gehrig's disease and so you talk about a big need for long-term care, and I was just up meeting with these people year and half ago really talking about her mother's other fully aware of care and what it costs and and they're also very aware right now that she's in a position she's quit her job already and she's can be taking care of him really should do right now full-time. Even though he doesn't really require a lot of care yet but a lot of my job as I see it is helping the 90% number that you throughout is really the number of people that are without long-term care insurance.

The statistics about 10% of the people that need it. Have a plan for long-term care and that involves insurance and 90% down and these people fall in that category, but that doesn't mean we can help him you know and I was able to really sit with them and we figured out how we're going to spend some of the IRA money and take a tax deduction for that to offset the distributions from the IRA and then when he passes on.

She's can receive the life insurance benefit that he has and she's can receive that tax-free to effectively replace the. The spent IRA money that we spent on care so there's there's things we can do to plan for this.

Even if you didn't plan for this because only 63 years old just had a lady that I this morning that just before we were coming in and get ready to do the show I was talking to her in Texas and she bought a Medicare supplement from us three years ago and just as chance would have it, one of our salespeople impressed upon her of buying some short term care insurance is only a little over 100 bucks a month even less than she's paying for Medicare supplement insurance with think I should buy any pay 750 bucks a week for home healthcare is got minimal criteria that you use an agency and I can get into the details of it.

She understand and she even know really what she needs to get through to me. She called in yesterday just got home from the hospital needs care. Her daughter is going to maybe take some time off from her job come over there for several weeks take care of her. She didn't really know what she's been through. I said, will this insurance is going to pay you and is just going to pay you cash so you can pay your daughter some money that you have to use the home healthcare agency a little bit and then I have to validate the need for the carriage. My point is, she did some planning that she just kinda lucked into somebody threw it in with her Medicare supplement insurance but what a blessing is 52 weeks a care and she asked how long it is so there are ways to plan for this and there's ways for your parents to do things and if they've got reasonably good health. Still, we can still do something about this and we still have products we can share some assets we can. We have solutions.

But if you're in poor health and you know long-term care insurance companies gonna take you.

We still have things we can do to sit down and plan for the inevitable and at least make this Diana and I guess the part for me personally is I would've guessed it was inevitable and somebody said no and I knew my dad and Devonte long-term care insurance. I knew it near before his accident. But it is almost inevitable that old people fall and when I when I look at my own family.

I can see my mother did. My father did.

My grandfather did him and my grandmother did you know I think about it.

They fall in and after they fall their skin have to be some rehab but it's pretty clear to me now that these are things that is is head of the household or is is the wife of the household go. This is something that is can it really require us processing because it's a different world than it was 20 years ago people in my experience by long-term care insurance because they love their family because it's the family that bears the burden the actual person receiving the care that's probably paying for the insurance sure it helps them and it helps relieve the burden. But the real the people to pay for this, like the gentleman with ILS. His wife is bearing the burden for this is her life is good and become much more difficult and even threatening your own health and that's where being able to bring in people for custodial care. They're going to get the skilled care and all the equipment and all I can stuff she's going to be administering along with the bathing, along with addressing along with the eating and along with the just sitting there being there for their needs. All those kind of things 24 seven just wears you out into to be able to have insurance that's going to kick in money for that where you're still at home or pay for it all depending upon the level that you bought. It's a wonderful thing and you know there's also all the guilt and shame. By the way, that comes if he hadn't thought about this young thing about it at that. It's it's real that you know when your family when your dad or your mom is not getting the care that you feel like the this person that carefully breaks your heart and and and and and you know that that's been a part of the equation as well. So today show's 11 year household through long-term care planning and this is again a cardinal you can get the chapter in Hans's book the complete cargo guide to planning for living in retirement courses seven worries tab. You can see one of them is long-term care which is the title of the show, you can get that PDF of that chapter absolutely free there at the seven worries tab we can order the whole book on Amazon. Easy enough, or just email Hans and tell me what the book so you know we got a lot to talk about here on this whole subject because we really feel like this is the place of learning and in the idea of finishing well right and I know you want to finish well. We all that we want our family go man, no, dad, mom who everything that they plan things out so that the 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 IRA Social Security at a care and long-term care.

Just go to cargo and contact to schedule a live recording of finishing well at your church Christian or civic group contact contact. Cardinal that's Cardinal welcome back to finishing well, a certified financial planner Hans Schild.

Today's show loving your household through long-term care planning with the idea being that you know and again I died challenge people to begin your show to go take your concordance and look up the word love in Hebrew and compared to the word father and you can find both of them have house right straight in the middle. It's a bead in the it's a bit in Hebrew, which stands for household and of course God, the head of the house and and so because of that he's plan for all sorts of cool things for you throughout your life and provided for you in so many different wonderful ways but plan to head to know that you know like it says he knows about the plans I've made for you to prosper you not to hinder you. Well, as is the head of your household.

You know how are you planning to prosper your kids through your own, you know, in the lessee happy whatever that word is but nonetheless if you listen, you may be wondering okay Robbie where's the beef you know where. And so Hans Ito first, where's the beef what what can we do well. You just can refer to my book and I wrote the workbook, which is the second book that I wrote to really put some facts and figures out in front of the reader so that you could say in wheat we we we show a 55-year-old and a 70-year-old female, and we go through about 10 or 12 different policy options and I'm finding that the story of the lady that we spoke about in taxes on the first part of the show. She's a little under 70 and she bought a little smaller policy than we show here on page 33 of the work. This shows $136.24 a month is the premium for the short term care policy in the short term care pays for both home healthcare and an institution like an assisted living under separate benefits and it pays in indemnity benefits or just send you a check for every week that you're getting home healthcare. You don't have to send a lot of receipts and to get that is just just to simplify, but that's the always wondered about indemnity.

I hear that word, and I'm still fuse about it but okay she have several products. Several benefits on the insurance products that pay office in indemnity and all that simply means is you meet the standard of care you need help with bathing, dressing, toileting, transfer, incontinence whenever the six benefits you need help with two or more them or you have a cognitive impairment. You've now met the trigger of the policy. Once you do that. They just send you the money.

Every I like that is a wonderful benefit cost see a little bit. But as we go through in the policy.

I just explained the simplest, least expensive form of long-term care insurance and this lady is replayed she has in this is wonderful stuff where it's going to give a year or two of protection or insulation between you paying for this yourself so it's not a comprehensive long-term. The first one I have on page 33. So as needed to get back to her story because III think a lot of I know I didn't understand this, but she was in the hospital she needed rehab at some point in time, they won't keep you there anymore. Gary I know you think she went to read. I think she just got released home is like you're gone home. Even though you really can't take care yourself is when you need rehab you need skilled care does not what were talking about here and they could pay for skilled care and will pay for school were talking about custodial care for help in about talking about people helping you with bathing, dressing, eating, transferring, she just told me on the phone just this morning that she needs help a week from Thursday. She submitted driver to the doctor and going to the doctor with there's nobody to go with her. That's not enough to trigger the benefit of the policy she's receiving these home healthcare services. Anyhow that's what she can use part of the money for sale just on that day, instead of being over there for two hours there veal working with her for about four or five hours in Seville driver to the doctor the go there.

The checker in the gator through her appointment in any therapy she needs them back home and you know that's the kind of stuff that these family members are doing for people and you know it's wonderful to do. I did a lot of that with my mother.

You did with your father, but 24 seven. He just doesn't work me just doesn't work for people in their 50s and 60s to be doing this for their parents all the time that maybe some of the time, but this does this insurance can pay for this and so this lady never went to rehab and she was just home and she got out of the hospital the day before yesterday she called me yesterday.

She's figured out what she's going to do when she's thinking through this and so she can limit call and find out what this insurance she got through me and I sat there and I said you normally get on the phone, find his place in care and so it took me a little while and I was talking to these people and small town in Texas and I really when getting they would say in the second things I wanted to say to me on the other end of the phone and so then I just went on and I just I googled right at home, which is a national franchise thing and they couldn't help me either.

They didn't have anything close, but when I googled that visiting Angels came out. So then I went on visiting Angels site typed in your ZIP Code around in 10 miles away. I found a franchisor visiting angel.

I called them up.

Got it all taken care of in about 10 minutes.

Explain what she needed. There doing a free assessment there to be out doing that now it's gonna be tomorrow. They're gonna go out there and assessor there and start given her care right away in her home and get the insurance company pay for that and not put yourself now in the in that dark position. I she's trying take care of her family. Her mother lives in a different place and she's trying to navigate life and feeling guilty as all get out because mom needs my help and I can't but now all of a sudden that that it you know short term care insurance. The risk what will this this could go on for a year when she's got.

It was a short term care policies got 52 weeks a 750 bucks and so you know you flip the pages and hereby the way the workbook you can get books. The original guide or the workbook in a lot of places you go on Amazon there on there that are inexpensive and go to Col. get Amazon that will take you right to the books page you can get them for free like you can get the long-term care chapter.

The stuff I'm quoting on page 33. You can download that for free, just under the long-term care tab on our website. Col. you can also send me an email I be glad to send you these books so things that just for me, that we talked about several shows that just looks really fascinating, as it apparently there's like a whole life insurance policy that also has a long-term care benefit. So it's you, is that what you call a hybrid is a hybrid something else hybrid is putting together two things and making one that's with the word no is in Webster's and so hybrid is the merging of a life insurance policy in a long-term care policy and it really appeals as well. The people's needed appeals to their great because a lot of people's excuse for not buying long-term pain.

After all these years. Emma drop over dead never collect data and you know what my thinking is well and you never know it by the way, both, but still so you buy a life insurance policy, a hybrid life insurance, long-term care and you buy a death benefit just like you did on any other life insurance policy and then you have the ability to access your death benefit early before you die, will you still alive for long-term care and is a tax-free accessing of it as well. So you buy 1/2 $1 million life insurance policy and it allows you to take out $10,000 a month for 50 month sentence given a simple example and so if you never use long-term care to your heirs again and get half $1 million. When you die. If you use long-term care you have the ability to withdraw $10,000 every month for 50 months, which is a little over four years that you then spend on long-term care and that comes to tax-free and then after you die, you know I can get both benefits your state means so so if they page out 20 months at $10,000.

Are you collected 200,000 are now deceased, your heirs again get 300,000 S. in its simplest explanation that's a hybrid life long-term care benefit.

There's also ways to buy that with a single premium policies that you can buy much less than half a million. You can buy 100,000 or 200,000 and then when you blow through that there's an extension writer the pace for long-term care and I want to start throwing a lot of facts at PLA Minutemen since throwing that out there an extension writer yet to be begun to me with so this first advised the hybrid right right in there and and and all of a sudden wow 850 months, it's gone.

And but they could they could have purchased something to cover that as well yeah just extension writer were now the thing is is no death benefit 500,000 is used up. Now you have a long-term care extension writer that you bought in the beginning it keeps paying you 10,000 now is that a single premium is that something that you can be. Either way and are those expensive these yes Biot yes no when somebody asked me is this expensive, you know my answer to that is yeah it's real expensive and when I want to ask you a question back is that if you buy the insurance or not because if you buy the insurance this thing's going to pay you hundred and $20,000 a year for several years to pay an expensive long-term care bill, it's gonna cost you less net premiums and you can purchase this even with IRA money. We can take a piece of your IRA money and move it over there. You don't have to pay taxes right away you have to pay taxes on that IRA, but we can utilize your IRA in the planning where we can take a chunk of money and put it together with one of these writers for long-term care and come up with a very good long-term care benefit and do it by just moving your ass moving your assets to insurance company. Here is my boss used to say which our thought was profound wisdom. He said if you think education is expensive. Trident yeah yeah and and so it really that applies completely to this subject because I can assure you that I fit under the class of totally ignorant about long-term care about Medicare and all those kind of things. Like you say it's you have all these things are in this book are connected together at some point time and this is where the real catastrophe can happen but it is seldom do we talk to somebody about only long-term care minute happens once in a while, but were talking to them about Medicare long-term care Social Security their income taxes. The taxes are paying on their Social Security or IRA retirement income were put in the whole plan together and long-term care is just a piece of that.

It's a very important piece and what what all and just here in the end, you can get a lot of the stuff from anybody and you know you can end up by it it if there's a place that I'm proud of that. I make a difference in my practice is you end up with me as a financial planner you can, and know your families protected because I'm in impress upon you the purchase of some type of protection for this.

If you get here are code on the cathode loving your family well.

As you finish well with long-term care planning. Thank you. Hans would have a great shout.

Thank you. We hope you enjoyed finishing well brought you by Cardinal is a cardinal 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 guide 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 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 cardinal

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