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The Riches of a Glorious Inheritance: Dissecting Life Insurance

Finishing Well / Hans Scheil
The Truth Network Radio
November 24, 2018 8:30 am

The Riches of a Glorious Inheritance: Dissecting Life Insurance

Finishing Well / Hans Scheil

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November 24, 2018 8:30 am

Ephesians 1:18  says "he eyes of your understanding being enlightened; that ye may know what is the hope of his calling, and what the riches of the glory of his inheritance in the saints". We see a lot about inheritance in the bible, but what does this mean in our everyday life?  

 

We need to look after our family after we die, and one way to do this is to provide them with financial security, which can come in the form of life insurance.

 

While it is easy to decide in your younger years to sign up for life insurance while you are still supporting children and paying the mortgage, it is easy to believe that you do not need this coverage in retirement. Hans sees people that believe this every day.

 

What people don't consider is the cost of a funeral as well as the money needed to pay the bills that are probably not going to stop for at least the next 6 months, especially if you are leaving a spouse behind. Just because you are gone, does not mean the phone bill or the water bill doesn't need to be paid.

 

Hans has many examples in his books of the costs of policies. Many people falsely believe that you can't get life insurance after a certain age. Hans talks about how he can sell policies to people up to age 89.

 

In all these examples in the book, Hans uses the death benefit of $25,000. This will cover the funeral, estate settlement, executor, and income replacement for 6 months to a year for most people. Men are going to cost a little bit more than women, as that is how life insurance prices normally are.

 

These are all permanent policies, meaning they will be in force when you die. They are also guaranteed to have premiums that will not increase.

 

Lastly, Hans and Robby discuss making sure that the person you go to to get help with life insurance is a fiduciary and why that is.

 

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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Welcome to finishing well brought to you by Cardinal guy.com certified financial planner child, 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.

Finishing well well I'm excited today on fishing well because I'm guessing that this service can be glorious. We talk a little bit about Ephesians 18 and interestingly, I've been teaching this verse to my especially classic Calvary Baptist Church so and is an interesting thing that did teach an inheritance for these people, but having the eyes of your heart enlightened.

That's Ephesians 18 that you may know what is the hope to which you have been called and what are the riches of his glorious inheritance in the saints, and so I'm sure that is you think about that verse I know is I think about that verse.

Wow Jesus has a mansion lined up for me. He has something that's going to blow my mind. I mean he eat III won't even be able to fathom what all he he has for me and it it's interesting throughout the Bible.

You see this word inheritance. Paul uses it in Ephesians and in Galatians and time and time again.

This inheritance and it was. He's obviously in the Old Testament when they were given their property as an inheritance and so this is a very biblical thing that a father is the mother as they begin to think about their estate. They want their children to feel like they have a glorious timing of when to be godlike would be to want our children to have a glorious inheritance versus are they going to be like man I can't believe they stuck me with all this stuff and eight and a didn't work out and I've got to do all this stuff and and are they remembering your estate or is this you know like what you do echoes into eternity that this is how they remember you is being burdened by the work of your death. Everything a beep or they can remember years me and it was a glorious inheritance and and it may not have anything to do with the money, but just the way that other things work out that money is part of it is in the modern world.

What were talking about here is the transfer of property and wealth in that's achievement times your life insurance right and and and we've gone through these numbers before and it it just kind of occurs to me that wow I really really want to think about this in a you think that I would think you know I make sounds on my executor.

What a honor. But now I just put them in the catbird seat to take on lots of responsibility and and and maybe have to deal with her brothers and sisters, and all the drama and you know how they compensate well yeah so let's use one of read something that I sent to Robbie this morning getting ready for our discussion before the show and I decided no we are to look after our family remaining on earth.

After we die. That's kind of a simple blunt way to put it when I get out of reading Scripture and then well-run earth.

Here we listen to the consumer activist in the media and we fear getting cheated by life insurance so we go without life insurance and then specifically it's real easy to go without life insurance and retirement, which is who the show is 4% okay so I bought term insurance. I had insurance at work, or I didn't buy insurance and have beat the system, because I've made it here to retirement. My kids are grown. My house is paid for what I need life insurance for and so it's kind of an easy thing to fall into, but I say as I say, my booking and teaching on this stuff.

I'm in a recommended retirement $25,000 for the life insurance is a minimum downtime. I remember the first show I did with you and you through that number out there went what how how can I possibly need that Ben is you begin to go through those numbers inside there went all while that's absolutely the case Do that in module six of the workbook which you can download it@cardinalguy.com you can go to the life insurance tab and you can download the life insurance chapter. The life insurance module for free and read it and you can even play back the recording of the show if you just go to finishing well on their mind and on iTunes. But anyhow we will want to get you the information but I just cannot lay it out there and maybe you want to go over these numbers Robbie that are on the top of page 88 and this is just you know what he considered to be the bare minimum minimum funeral $10,000 so and some I hadn't really thought of because I had lived through many funerals, but attorneys fees for the estate settlement and oh by the way, what I've learned since I first heard that was that this thing called probate and probate takes time and attorneys take time and effort in phone calls and all this other stuff but just what you have to pay the attorneys for that probate know what stuffy estimates 2000 be a lot more that can tell you if it's a large estate just as a minimum to get an attorney to do that its concussions go and then the other thing I think is really neat in your list is the executor thousand dollars for the for the family member, whatever that has to take the time to figure out how all this stuff is can work out. I mean, just think how much time and effort, but how wonderful I think a glorious. The thing that they look, there's a compensation for you specifically in this for taking on this responsibility Again for a very small state I can think of.

Some states were two executors were paid $45,000 each and they worked at this almost like a part-time job for a year, with the assistance of the attorneys these things, they had to do have liability and by insurance. So, just as a minimum thousand bucks just thrown in there that out of the there for the person taking care of even the smallest so then and and this one is definitely huge when you really begin to look inside of it is you got income that is stopped and so security check in most Things 6 to 12 months income replacement that's another 12,000 so those come to 25,000 that 6 to 12 month income replacement is huge.

Especially when you got a surviving spouse right will yeah that's right have the six months I mean just if you talk to these people when there's a death of a person. Maybe they've just bought a policy that all it pays for his burial. Maybe they have nothing.

Maybe they're fortunate enough to have some sizable life insurance but what happens is the smaller Social Security check goes away.

So there's guaranteed a reduction of household income and there has to be an adjustment. So I'm just thinking out of the small life insurance policy you can have an additional $12,000 that sent to the surviving spouse.

If there is no surviving spouse, and you might say will they need anything for tell you the bills nonstop when somebody dies, we were thinking in terms of, you know, family member of yours that the house is paid for.

There is no sales surviving spouse but if you inherit the house or maybe haven't even figured that out is you are going to have to pay the water bill and you're going to have to pay the property taxes and you have to pay the insurance bill and you can have expenses in any of you that have had your remaining parent that was just the surviving. One of them pass away you.

You know that there's household bills to be paid for a period of time that this is what I'm talking about. For here is that's the beauty of life insurance versus some other part of the estate is because if the estate go through probate. You could be months. You gotta get Annie and ask him for it, and prove all this, stuff if you have $25,000 life insurance policy. This money is going to come to the named beneficiaries in your name, you can spend it as you wish and you can just spend it and pay the funeral bill pay the attorney they usually want to retain her as soon as they handle something you can pay the executor and the money is just there in your account to distribute as you see fit to replace that absent income now and just pay the household bills. You only have to go to the attorney in the state to ask for what was being sent yeah and and actually prior to ever doing my first show with you Hans.

I didn't realize you can get life insurance 75 or 80 or 85 or if you're on dialysis and what it but it's clearly available for everybody in in in these terms, especially with that amount because there is a need for will I wrote this workbook to be practical so that somebody can read the work they can read the original cardinal guide and they can leave there saying okay. I want an example of this in. I have several people call me up after reading is from all over the country and they say you know I'm interested. What's that policy behind his.

I don't name specific policies. This is not a policy sales job is just to give an example. All these rates are female.

So just know that the men are to be a little bit more and I show an example of a female age 55 and of female age 70. So if you're between 55 and 70 just it's going to be somewhere between these two rates. If you're short of 55 it's can be less than this rate if you're more than 70 just know we can write life insurance policies through age 89. They believe that yeah well it's necessary so that insurance companies have figured out you know how that works and what they need to do, but it's it it certainly not unaffordable and it and it certainly is something that would be really necessary for those left behind well and if you have somebody in your even poor health, not extreme poor health, but just poor health or somewhere between poor and medium health and there 87 years old 88 years old. They've got a life expectancy of quite a few years in the life insurance company knows that some of them are going to be gone a year or two in there and have to pay off on those people and some of them are going to live to 100 and there to make some money on those people. But it's still a risk that you didn't know, and a lot of our listeners just didn't know when you're right at retirement carrier in retirement that you can still buy life insurance. So let's get into are examples of old reference will I remind him that they listing to finishing well, a certified financial planner Hans Schild and you know this whole show was kind of based on his book the complete cardinal guide for planning for in the living Leonardo guide to planning for living in retirement, in which he can say so much better than me that on Amazon it and for listing all you have to do is go to the website. Cardinal guide.com and he will if you contact tonsils into the book for free. You got this chapter on life insurance and these examples, the exact amounts in all their right there under the seven were stabbed under life insurance you send me an email, I'll send you the book for free or a message on the website. If you don't want to say who you are and you want to remain anonymous and you want to buy the book on Amazon. You can get it through our website.

Cardinal guide.com go forward. It's just a dollar 99 on the Kindle.

Each book if you want to get the book for free or per part of the book, you can just download it from the proper tab on the website absolutely free. We put it all up there. We want to get you the information in the learning kind and so were to get into these examples in a minute right on the other side of the break, but before we do that, you told me some extra time at the show that obviously you you work with a lot of well-to-do people some very wealthy people and you can find something in common that would kind indicate they don't think they get ripped off by life insurance. Most of them have large amounts of life insurance is just bankers people that are money savvy people that own businesses. People that have accumulated wealth landowners typically have large amounts of life insurance on both spouses, so this is an observation that I've made and it is really speaks to the true value of life insurance, they wouldn't have. It is a will and good in there and they're concerned about their specifically in their inheritance and no sort of their estate in a part of what they left behind, but hopefully you know there is wood used to build the kingdom with so we get back. Talk about glorious inheritance sign that Satan; we hope you are enjoying finishing well brought to you by Cardinal guide.com visit Cardinal guide.com for free downloads of preview shows including episodes about Social Security and Medicare, IRAs, long-term care, life insurance, investments and taxes as well as Hans best-selling book, the complete cardinal guide to planning for and living in retirement.

Plus the accompanying workbook. If you want to follow along with today's topic download free PDF had Cardinal guide.com by going to the seven worries tab of today's show topic to scroll down to useful documents once again for free resources shows go to get Hans book the complete cardinal guide to planning for and living in retirement or the workload go to Cardinal guide.com you have a question, comment or suggestion for future shows. Click on finishing well radio show and send us a word. Once again that's Cardinal guide.com Cardinal guide.com now finishing well brought by Arnold guide.com welcome back to finishing well with certified financial planner Hans Schild in today's show, the riches of a glorious inheritance which is really provoking to me like what would be a glorious inheritance for my children from a standpoint of of spiritually, seriously. I mean that's that's huge but also you know we meet their needs financially, especially if there brought into the process of executing my state sure did. So when I wrote the workbook. I wanted to make this something that you could read this and you really could get something that you can use of the first example that we went over we came up and we justified in retirement have and $25,000 of life insurance of permanent life insurance that's going to be in force when you pass away, and this is a minimum you can take any of the numbers in the book just multiplied by four if you wanted $100,000 for the life so we got for examples in the book that we give specifically. Yet each example gives a female age 55 and a female age 70 and a mentor to be a little bit more, a lot more but more but we use the female rates and then the real differentiator view in a want by a policy like this first example, if you can qualify healthwise okay because life insurance companies go check it out in lot of folks who use that as a row. I can't get life insurance I get this illness without illness or somebody told me I couldn't get it. My brother-in-law used to sell life insurance. He said no way you're ever going to get it.

I can just tell you we can cover Jan $25,000 with life insurance. Regardless of your illnesses and is just getting a fall. If you have severe illnesses.

In this example 3 but to go over the first example you can go through for full underwriting. You don't necessarily need to have excellent health, or even great health. Just need to have good health or moderately good health, where whenever you got wrong with you is pretty much under control. It's not something that just came up and we even have examples of what full underwriting means and we have an example of a whole application and all the questions are and ask, but in this example, a 55-year-old female can get $25,000 with a life insurance for a premium of $488 a year, year, so that would be five roughly 500 bucks a year and that premium is for the rest of her life, so she's going to need to pay the premium. There's ways we can make this premium stop after 10 years as conveying more as a whole lot of variances but we just try to keep this as simple as we could less than 500 bucks a year 55-year-old female is a $25,000 policy 70-year-old female the same $25,000 for the life insurance thousand and 79 a year or if you break that down by the month, about 80 bucks a month for less than 90 bucks a month no. 90 bucks a month and so let's just take a look at that for a second. Let's say you lived in 90 to get technical about this impractical.

This 70-year-old lives to 90 so again since you your described it as a permanent life insurance policy meaning.

This isn't term I is not to go out that premium that you talk about $1000 a month is can stay without a methodology.

Excuse me.

Let's clarify that $90 month about $1070 that 90 bucks a month is going to stay in. It's never going to go up the can guarantee okay for all the premiums that are quoted in here in this book there for whole life insurance is a guarantee from the insurance company they'll never go so while some like you said, okay, getting back to her night-year-old so we got we got this person that bought it at age $74,079 year 90 bucks a month they lived to 90 and the.they paid into it for 20 years me grant this is person is living 20 years and the insurance company is paying off 25,000 and grant they paid in a little over $20,000 in total over all those years so the insurance company has made some money on those people not a lot because they've made a little interest on investing their money they paid in 20 2122 and then there beneficiaries of collected 25 but then we take the person who dies at 80 insurance companies lost money on having this stuff is a is a good deal and let's think the person that buys this thing pays 90 a month and they're gone at 7674 immunity yet and it really doesn't matter to you whether you're making money or losing money.

What you're doing is buying this panic building in your budget or guaranteeing that your beneficiary are probably your children or your surviving spouse is going to collect an immediate check for $25,000, which is very much need we take the 55-year-old around the same policy world and answer some questions about your health and this person that is 55 lived 90 so they have the policy for 35 years 35 years of 500 bucks a year is about $17,000 or so. This is clearly been a good investment for them because it is just as $25,000 policy and this is on a person that lived in a tent, let's jump to example 2. So why would we want to buy a policy under examples tanks where under example to this 55-year-old female buys the same amount of insurance for 744 bucks a year, or a 70-year-old person buys the same policy for 1442 a year. So why would you want pay 1442 a year for something you can give her thousand and 79. Why would you think my health very good. So we've got about 15 of these policies and they're not all.

Exactly this price, but they're pretty close going there, just somewhere in the zone six. Why do you need 15 of these.

Why can't you just have one. They all have different questions that they ask about their health and we know we know which ones are going to handle certain things in which way okay so we got all the people that have diabetes. For instance, okay. And then they got diabetes you got all your numbers with diabetes you got whether your type I or type II and then you get where the you take so many units of insulin's got an A1c number we know all that stuff and we know how these different 15 insurance companies are going to react diabetes and they can react that how well is under control. Bottom line is is weak.

If diabetes is all you got are you got diabetes with high blood pressure and some other things going on. We just know which companies to put you with and so you can get with this example to policy where you might not be able to get example 1 policy okay so this rate if you got diabetes and it's well under control and its type to primarily you probably can get this example, one path is, are set so I go back to that but week working at put you where we can get you the best rate and have a guarantee okay now the interesting thing that I remember it when I diagnosed as much the doctors for the very first words to me when he came in after reading my blood test was Robbie Hauser life insurance that was in my 40s I felt like I with you asked me such a question, but he understood something right. Yeah that that he understood that people are going to eat.

He's had more than one client come back to him.

They just got declined or rated on their life insurance and they come back to him and they've said you know I came out of this medical record and they life insurance company told me that we base my premium or they decline me based upon what you have in it was over. The diabetes day in your numbers were probably a little bit out of control and said he was just alerting you okay dinging the meaning we got a problem with diabetes and without problem with heart trouble. We got in trouble with cancer in your past.

Okay which is still a wake up call to guess what Rob Ewing live in forever.

It's unless Jesus comes back and so you know, what do you have in place to take care your family is interestingly a wake up call because there you go, will you in so just because you have these things are, you have had these things doesn't mean you can't get the stuff going.

You can't get example 1, but what I'm saying is as if you got some issues with them or they been recent you're probably going to be over on example to sleep a little bit more, but you're going to get a cover example 3 we get people we write people with kidney dialysis all the time on example for people with active cancer right now you say will help you write life insurance and somebody who has that illnesses we absolutely can do this we can do. It was several different companies. We have one in particular that we like the most in the same 55-year-old female is now thousand and 59 a year in the 70-year-old female is 2046 he and this policy has a catch the catches. If you died during the first two years. It only returns your premium plus interest to your beneficiary so but it's still a benefit there to give you all the money back to your beneficiary that you put in this that you make it to the 25th month. This policy pays out its full 25,000 just like anything else we have lots of people the purchasers policies from the anti-I want to go over the fourth example which is just really a way to buy this with a single premium so we have a thing called single premium whole life same $25,000 with the life insurance but instead of paying premiums over your whole life. The 55-year-old female pays a one-time premium of $10,593 is paid up for life 25,000 and the 70-year-old female pays 15,432 so there's a way to buy a $25,000 policy with a single payment.

You can buy $100,000 policy the same number. You just need to multiply everything times for colors that I mean you know if you wonder the math on that you go wait a minute now so you know if your 70 and and you multiply this times $400,000 for the life insurance at and you're paying out 60 grand. It seems like you're in a make 40 on it, no matter how long you live where you actually are beneficiaries are well. I was pointed out April start using the I word I'm going to get this. I'm to get that will add to that unfortunately you're not in a get okay and I might not also be here to watch the movie but this is this is for your family. It is it it really is that at and it's nice to know that you know you've got investments and an you know, ways to be generous with the people that you love them just like So this is another adventure on today's finishing well. We want to mention, of course, that you can go to Cardinal guy.com and of course purchase the entire book, the complete Cardinal guide to planning for living in retirement, certified financial planner Hans Schild. You know that with that the resources are there because you have a heart to teach a stuff gets complicated is very much so it's not complicated to me and it is, my current get a less complicated, yeah. Go through this. Thank you Hans 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 guide to planning for and living in retirement and the workbook once again for dozens of free resources past shows 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


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