Long Term Care Annuity

Hi, this is Roy Jones with ManTalk Radio Podcast. Our mission is to break down the walls of race and denomination. Your chosen Truth Radio Broadcast will be starting in just a few seconds. Thank you. Welcome to Finishing Well, which today's show, oh, my goodness, I think we have a real treat, is there is a new kind of annuity that would help you with long-term care with some amazing benefits. And I think you're going to be so excited, especially, you know, in the long run, you're going to be able to take advantage of that. Especially those who may have had trouble qualifying for long-term care before through other products or other things.

And so, along those ideas, it seems like it has a lot to do with qualifications. And you may be familiar with Matthew 7, 22, where Jesus says, depart from me, I never knew you. Well, in Matthew 13, actually starting in verse 22 as well and going on until, I think, through 30, there he says it a little different. He says, I never knew you where you are.

And so, by adding that little suffix on there, where you are, yeah, he never knew you, but he also doesn't know you where you are. And I began to think about that and thinking about when Adam actually died that day, that he ate the fruit. And when God cried out, which I think is a better way to put it than he called out, he cried out, where are you, Adam? Because his son literally died that day, and he could not be any longer in the presence of God. In other words, he was separated from God, that made him dead. And so, when Jesus can't get to you, like when you're not in through the narrow gate, if you're not in through his blood, then you're not where he is.

And so, he can't know you the way he knows you when you're in Christ. And so, as the ultimate qualification also happens to be Jesus' blood. But I love this new strategy for long-term care, this new annuity.

Hans, take us there. Yeah, well, it's just interesting as you watch these videos in preparation for the show, you're the one that came up with qualification, using that word, and that is the issue with long-term care insurance. It's just, you have to qualify for this stuff. And people that have illnesses, chronic illnesses, just historically have difficulty buying long-term care insurance from any carrier of any type, whether it's traditional long-term care, hybrid long-term care, they can't qualify because of health conditions.

Until now. So, now we've got an alternative that we've got quite a few people are taking advantage of. So, it's not only people that have health conditions that are going to this product.

There's a couple other places, but by and large, it's the people with health conditions. And many times, we're talking to people about a husband and a wife, we're talking to them, and we've submitted both of them on one of the hybrid long-term care policies like we've talked about a lot. And one of them gets rejected.

And the other one gets accepted. And that's a difficult, now we've got lots of ways to work with the one who got turned down and create ways to create payments, but they're all a lot, a bit contrived. And a lot of that is where it's difficult on our part, is just convincing the healthy one of the two to go ahead and take it, even though the company turned down the one that has a health problem. So, this product came along, and this is an annuity as opposed to a life insurance contract, but it still falls under the same tax laws. And what's different about this company and on this annuity is they're looking at different things than your traditional long-term care insurance.

They're looking at different qualification items. So, what they're not looking at is your health history. Other than a few screening questions, I mean, we've gotten people insured on this that have Parkinson's. We've gotten rheumatoid arthritis. We're taking methotrexate. We've gotten a guy that had a couple of TIAs.

I could go on and on and on. Somebody with long COVID and combined with ovarian cancer like eight years ago. Somebody with prostate cancer in the last year. All things that they would have difficulty getting these other companies to insure them, and we were able to get them insured on this for long-term care. So, I want to talk a little bit about what the qualification for this is. Yeah, I love the way you describe that in the video, you know, that they're just thinking outside the box that a lot of times when you're doing, you know, questionnaires for people for qualifying for long-term care, that you're sitting there looking at the person knowing that they, you know, that they don't look all that healthy and there's a lot of stuff going on, but on paper they look great. And these folks kind of isolated that and said, wow, I'd rather go with the people that look great that don't have quite the history. Isn't that kind of the feel of it?

Well, it absolutely is. I mean, you know, to a degree, I've kind of heard and thought that all along. Is it somebody that had a heart attack four years ago and then they had heart bypass surgery right afterward and then they're on all kinds of blood thinners and all that.

But then they lost weight and they're pretty much stabilized, you know, and they look pretty good and they're healthier now than they were before the heart attack. And the odds of them having something else like a stroke and then that stroke putting them in a nursing home or at assisted living or at home and then being there for like five years. I mean, sure, but I'm not so sure they're any more than any other person going along.

So people with chronic illnesses, a lot of these long-term care insurance companies are just going to say, no, we're not taking you because of that. These folks are saying, we're not going to look at that. What we're going to look at is how you move around, okay? We're going to do a video interview. And the biggest thing that I've seen is they do the sit to stand.

So you're sitting on a chair, needs to be a straight back chair with no wheels, 10 feet from the camera and you got to get up, sit down, get up, sit down and you got to do that so many times in a minute or whatever. And they can pretty much look at you and they can see, is this somebody that we want to pay a long-term care claim on or not or is this a coming claim? They also do a memory test.

So they're in sync with the long-term care insurers of picking out the people that have early dementia. So you're going to get a little quiz for that, but the people, we have yet to have anybody turned down on this thing, okay? So it's, I mean, it hasn't happened and they go through and because we're screening them and we don't even talk about this thing if somebody's going to be, they're going to be turned down.

Anyhow, why talk about it? But a lot of these people, they're just thrilled when they get this. So we've had real good success with it if we screen you. And the example and the plan we've sold to most people is where they put $100,000 into the policy. And like I said, many of these people, the other spouse is buying a policy separate from this that in some ways is better from this.

They can make their qualification. But for this thing, we use an example of $100,000 policy, a male aged 65, and this thing just shows that, you know, five years from now, they're going to have a monthly benefit for long-term care of almost $6,000 a month. If they start using it for long-term care and that $6,000 a month is going to last for 50 months or it's going to pay about $360,000 in benefit base on their initial $100,000 payment.

Okay. Ten years from now, it's almost $7,000 a month for 50 months or over $400,000 that it's going to pay out. So this is a smart thing for people to do if they can't qualify for the other kind of long-term care and they have the funds that they can put aside $100,000. In fact, we've had some people put $75,000. I don't think we've had anybody put $50,000, but we've certainly offered it and that'll still provide some basic coverage for you. But it seems like $100,000 is the amount that people are willing to put into this thing.

Yeah, which if you're in that boat, then obviously we've always talked about the seven worries. What kind of worry do you have because it could just totally wipe out your savings, et cetera. If all of a sudden you really need to go into some kind of facility like that, it wouldn't take long and you would be out that half a million dollars or whatever, right?

Yeah, and it's my experience that I'm never going to talk somebody into the logic of this thing. I mean, sure, because what's the problem here is I'm sitting down with somebody, take $100,000, which is a lot of money, send to this insurance company and let it just sit there for the rest of your life. And if you never need long-term care, well, that $100,000 is just going to grow and then when you pass away, the money will go to your beneficiaries, okay? Just like any other annuity.

So that's not a terrible deal. It's not all that sweet in the fact that the interest you're going to earn on it that's going to go to your heirs isn't really that significant. You maybe could have done better investing it, but that's the outcome that you can expect if you don't need long-term care. If you do need long-term care, this is going to be the best decision you ever made because it's going to pay out three to four to five times your initial $100,000 if you need long-term care and you need it for 60 months.

But to talk people into that logically and to part with their $100,000 in the fact of indemnifying doesn't seem to be real fruitful on my end. Yeah, and especially when you think about some of those diseases you talked about like rheumatoid arthritis and Parkinson's and those kinds of things lead to some really extensive care. And so when you look at cardinalguide.com, which by the way is what brings you this show is cardinalguide.com, there you're going to find the seven worries to have. And one of those worries is long-term care and long-term care from all sorts of different angles like how you're going to protect your family and folks from stuff that ultimately happens to so many of us. It's all there at cardinalguide.com. There's a video on this annuity and the strategies behind this and a lot of detailed charts and information. They're all there under the seven worries tab, the worry tab of long-term care as well as, of course, Hans' complete guide to planning for and living in retirement.

That's his book. It's all there at cardinalguide.com. And most importantly from my perspective is the contact page where you can contact Hans, contact Tom, you know, tell them your situation and what you might be up against or what you're thinking on long-term care. Boy, they got all sorts of different strategies and ways to make this both affordable and good for you and your family.

It's all there at cardinalguide.com. We're going to be back with a whole lot more on this strategy of this particular long-term care annuity. Investment advisory services offered through Brookstone Capital Management LLC, abbreviated BCM, a registered investment advisor. BCM and Cardinal Advisors are independent of each other. Insurance products and services are not offered through BCM but are offered and sold through individually licensed and appointed agents. Cardinal Advisors is not affiliated with or endorsed by the Social Security Administration or any other government agency.

Welcome back to Finishing Well. In today's show, we're talking about a long-term care annuity strategy that's just been amazing for everybody you've had a chance to apply for, right? Oh, yeah.

And we talked in the beginning of the show. So this is where you take a hunk of money that's not an IRA. It has to be just regular savings from a brokerage account. You've already paid tax on it. And the example we're using is putting $100,000 into this. And really, if you want the long-term care insurance, leaving it there for the rest of your life.

And so we better do something before you. And, you know, what it's going to do is it's going to produce a significant long-term care benefit for either home health care, assisted living, nursing home. And it's going to be an indemnity benefit.

So like in the example we did here on a 65-year-old male, it's going to be about $6,000 a month that it's going to pay out for 60 months or $360,000 based upon that original $100,000 deposit. So, I mean, the benefits are there. And, you know, so why would somebody want to pick this particular product?

And who we've put this on are people that can't get the other ones. This is that some of the other shows we've done on hybrid long-term care where you can use IRA money, you can use regular money, there's a life insurance benefit. There's a pretty strict qualification. And if you've got a severe chronic illness, you might well be turned down for that.

And in cases where people have been turned down or we knew that they were going to get turned down, maybe just one of the spouses, we put the other one on that other product, we put these people on this. And we talked in the first part of the show about a fellow that had early Parkinson's. And he was all ears. And he actually put $175,000 into this product because he wants significant benefit. He wants to stay on his own. And, you know, he's like 63, 64 now. And it's pretty much with him a foregone conclusion that he's going to be needing care in his mid-70s at the latest. He was able, he's able to do the underwriting up and down in the chair and walk around the room sharp as a tack. His memory is, he passed with flying colors. And so now he's taken a small portion of his wealth, put it in this thing, and now he just knows if he never uses long-term care, then the benefit is going to grow.

It's not going to grow substantially. It's just going to go to his heirs, to his son actually. But if his, you know, if he lives a long time and he's in good shape, and if that happens, he's going to need care. And, you know, for a small initial investment, he's going to get about three or four times his money back in tax-free long-term care benefits.

And he was real pleased when we were able to get him approved for this thing when we had already told him that he can't get the other ones. They hear the word Parkinson's and they're done. Yeah. And by the way, being a cancer survivor, you know, they were pretty done with me in my first initial.

I remember it well and that whole idea of like, what am I going to do? And it's an amazing thing. You guys work with so many different insurance companies. There's just resources, right?

Yeah. And we just have to read. I didn't believe this thing at first.

I mean, and neither did Tom. I mean, we're skeptical just about anything when we first get a new idea that people are thinking out of the box, but we read it and we read it. And then we, you know, before we go try it on a client, you know, we call the company.

Is this really? And then we started creating our own real world examples. And we finally worked up our nerve and we said, well, we're going to send this person is we're not sure if he's going to get approved. And we told him that, but I said, if you get approved, this is going to be great.

And he did. And now we just sent in more and more and more. We got over 10 of these. And we always prepare people, you know, we may, we haven't tried this illness before. Somehow they can pick up on it, but I watch them do the agility test or some version.

I can just watch them walking around the room in the zoom and I can tell whether they're going to be a good candidate for that. And anyhow, we're well pleased with this, with people that have illnesses. And I wanted to add another place that we haven't actually used this annuity yet for this, but the next one that we find, we're going to do this. Now, there's a lot of people that have annuities, they put in, it's not IRA money, it's just, they put in regular money, you know, and you say you put $100,000 in there 10 years ago, and it's just been sitting there accumulating, probably not as fast as you'd like. But, you know, it's got now $160,000 in there.

Okay. And so you haven't touched it because you haven't paid any taxes on that $60,000 of growth. And this, that product that you have, most likely is eligible to roll into this product. So you could take the whole $160,000, move it from that product into this product, still not pay taxes on the $60,000 of interest, let it sit here. And then if you use long term care during your lifetime, it's going to pay out a benefit and the first dollars are going to come out of that $60,000 of untaxed interest. That's going to be a tax free benefit to you. So this is wonderful to be the funding vehicle of an annuity that has accumulation in it that you maybe don't think is doing you any good right now. You could use that to purchase this product. Yeah, it really is all sorts of opportunities, but it's a lot different than the other annuity that you are doing with IRA money. And so this is not to confuse you with that at all, right? It has nothing to do with it.

The other one that we are using that doesn't have a health qualification is simply, you can use that one for IRA money or not IRA money, but it produces an income that starts down the road whether you need long term care or not. And then that has the ability to be doubled. And that does a completely different product, different concept. And that one has no underwriting.

There's no video camera, no nothing. And for the people where they can't even get this, we go to that. But this is a specific annuity. It's just like any other annuity. It's going to grow.

It's going to sit there and grow. And then you're probably not going to withdraw money out of it because you might need long term care, but if you wanted to, you could draw money out of it. And then if you don't use long term care, the annuity plus the growth is going to go to your heirs. If you do use long term care, they're going to use your money first. And when your money is all used up, they're going to pay out about another twice as much as they used up of your money out of the insurance company's money to pay for long term care. I mean, that's a simplification of it.

Well, I love that. And it does make it simple. So if I understand what you're saying, that essentially you put in this $100,000 and it begins to make interest like any other annuity. And it's going to sit there unless you begin to need the services.

And as you begin to need the services, it's obviously going to pay out your money and the interest first, then your money. But then there's this obviously big insurance part of it where they're going to give you more than double the amount of money that you put into it. But the net result of that for 60 months, am I right? It's like $6,000 worth of care for 60 months. Is that $360,000? Yeah, that's just at the five year point.

It's just pulling an example. But it's going to multiply your money if you need care. You're not going to pay any tax on any money coming out of this if you use it for long term care. So they're going to use your interest first, then your principal, and when you're gone through your interest and your principal, then they're going to finish the 60 months just out of their money.

And it works very well. Now, there's a $50,000 minimum, so you need $50,000 to get the policy started. Once you're approved, you can put in the $50,000 and for a whole year you can put in more money.

So that if you get looking at this thing and you have some other money coming due, you can put in more money during the first year and get an increased benefit. It's available ages 55 through 80. And that's 80 in 364 days. In other words, once you're 81 you can't get this. But if you're 80 and you're right up against it, we had somebody that we got in during their 80th year. That's pretty much it in a nutshell.

So, again, I'm just asking questions because I'm not completely clear. If, let's say, you had long term care need, you had rheumatoid arthritis to the point you're completely immobile, and now the 60 months is up, and you've used all that benefit now, where are you? Well, where you would have been if you didn't have the policy in the 61st month is you're just paying it on your own out of something else. So this is going to pay for 60 months of benefits. Now, they don't have to be 60 consecutive months. In other words, you could get home healthcare for a year and then not need it anymore. And then you could need it again in the third year, you know, and so on and so forth. So it's strung together where it makes out 60 payments of the monthly amount. But when you get there, you're done.

Right. Which goes back to the other strategy that you were talking about with the IRA, which has, you know, forever benefits. So again, more information and really options depending on what you need. And that's where it's beautiful, all the knowledge and the expertise of based on somebody's need and what they qualify, what they might not qualify. There's all sorts of different options and all the more reason why you need to go to cardinalguide.com from my point of view. At cardinalguide.com, you're going to find there again, the seven worries tab.

And of course, this is under long term care. And if you go there, you're going to see a video that has all sorts of examples and information on this very annuity is, of course, at cardinalguide.com is the contact page. So you can talk to Hans about your particular situation. And again, once he knows it, he can help steer you in the direction of, you know, the best plan based on where your assets are. And, you know, whether you got qualified money, non-qualified money, all those things, you know, fit into a very unique plan that they could possibly make up for you. And I would love to, again, Hans' book, The Complete Cardinal Guide to Planning for and Living Retirement.

It's all there at cardinalguide.com. So great show, Hans. I love it. All right. Well, thank you. And God bless you.

God bless. The opinions expressed by Hans Scheil and guests on this show are their own and do not reflect the opinions of this radio station. All statements and opinions expressed are based upon information considered reliable, although it should not be relied upon as such.

Any statements or opinions are subject to change without notice. Investments involve risk and unless otherwise stated are not guaranteed. Past performance cannot be used as an indicator to determine future results. Any strategies mentioned may not be suitable for everyone. Information expressed does not take into account your specific situation or objectives and is not intended as recommendations appropriate for you. Before acting on any information mentioned, please consult with a qualified tax or investment advisor to determine if it's suitable for your specific situation.

Finishing Whale is designed to provide accurate and authoritative information with regard to the subject covered. Investment Advisory Services offered through Brookstone Capital Management LLC, abbreviated BCM, a registered investment advisor. BCM and Cardinal Advisors are independent of each other.

Insurance products and services are not offered through BCM but are offered and sold through individually licensed and appointed agents. Cardinal Advisors is not affiliated with or endorsed by the Social Security Administration or any other government agency. We hope you enjoyed Finishing Whale brought to you by cardinalguide.com. Visit cardinalguide.com for free downloads of this show or previous shows on topics such as Social Security, 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 and The Workbook. Once again, for dozens of free resources, past shows or to get Hans' book, go to cardinalguide.com. If you have a question, comment or suggestion for future shows, click on the Finishing Whale radio show on the website and send us a word. Once again, that's cardinalguide.com. Cardinalguide.com. This is the Truth Network.